DraftKings announced that it is launching its own federal PAC, becoming the first sportsbook to make such a move.
The PAC will be led by DraftKings’ senior director of federal affairs, Lauren Pfingstag Vahey, and senior vice president and deputy general counsel, Griffin Finan.
Although it is the first sports betting company to lead a PAC, there is precedent in the gambling industry, with fantasy sports operator PrizePicks launching one in 2023. Additionally, major casino operators like MGM Resorts, Caesars Entertainment, and the American Gaming Association (AGA) – of which DraftKings is a member – all operate federal PACs.
DraftKings has already been active in lobbying for increased legalization and decreased regulation in the betting industry. It spent approximately $420,000 on lobbying efforts last year, as well as donating over $500,000 to President Trump’s inauguration.
Additionally, as part of the AGA and Sports Betting Alliance, DraftKings contributes significantly to the lobbying efforts of both groups. The AGA is estimated to have spent almost $2 million in 2024 on federal lobbying.
Lobby groups key to legalizing sports betting
The AGA was a key organization in reversing the PASPA ruling in 2018, which led to the legalization of sports betting. As of now, 39 states offer legal sports betting, and lobby groups are adding pressure on the remaining states to follow.
DraftKings reportedly spent over $5 million on lobbying in 2021, primarily in New Jersey and Massachusetts. This led to Massachusetts legalizing sports betting in a favorable way for the Boston-based company. In New Jersey, it prevented stricter regulations around promotions and advertising from being introduced.
The company also successfully pressured Arizona regulators to weaken proposed rules that would have banned the use of the word ‘free’ in promotions requiring users to make a deposit. Additionally, the company supported New York’s high tax rate, which has seen major sportsbooks dominate the largest market in the country.
Failed efforts to expand sports betting
Not all lobbying efforts have been successful, however. There have been big efforts to legalize Texas and California sports betting in particular, given the potential market size of the populous states.
DraftKings was part of a huge spending campaign to support Prop 27 in 2022 in California, but despite spending almost $100 million together with other sportsbooks, FanDuel, and BetMGM, 82% of Californians voted against legalizing sports betting in the state.
Efforts are ongoing to soften the stance of residents, and together with the Sports Betting Alliance, DraftKings is trying to work with tribal leaders in California to pave the way for more opportunities.
DraftKings also remains active in pushing for legalization in Texas. In late 2024, the company hired a Texas-based Government Affairs Specialist to bolster efforts for legalizing sports betting in the state.
The company was also part of the SBA campaign opposing recent tax increases in Illinois. The effort looks to have failed with the state announcing a $0.25 or $0.50 tax on every bet, depending on the size of the operator. As one of the leading sportsbooks in Illinois, DraftKings is in the latter camp and responded to the new regulation by announcing it will charge customers $0.50 for every bet they place.
The move to tax every bet also looked to add pressure to Illinois lawmakers to rethink their strategy. DraftKings said it would remove the charge if the surcharge is reduced by the state. With the introduction of a PAC, the company is looking at one more way it can pressure lawmakers and regulators into creating a favorable betting industry.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
