DraftKings, FanDuel, Fanatics pour $42M into state politics

Federal Election Commission filings show DraftKings, FanDuel and Fanatics contributed about $42 million to a super PAC network created in late 2025 to influence state-level fights over sportsbook taxes, advertising limits and bans on prop and in-play betting. FanDuel contributed roughly $19.5 million, DraftKings $17.5 million and Fanatics $4 million. Much of the money moved through groups including the American Conservative Fund and American Future.

The network directed funds into campaigns and ballot activity in more than a dozen states. Filings show over $33 million was spent on state-level efforts in the first quarter of the year. In several races, candidates publicly distanced themselves from mailers and ads after the source of the funding became known. Before this year, Win for America had received about $2 million from DraftKings.

The spending targets debates now focused on how sports betting is regulated rather than whether it should exist. Lawmakers in multiple states are considering higher sportsbook taxes, stricter advertising limits, bans on in-play and prop bets, and proposals to restrict or roll back online wagering.

In Massachusetts, legislators are reviewing a bill that would ban in-play and prop bets, curb sportsbook advertising and raise taxes on operators. The bill advanced from committee but has not moved further; the legislative session ends in July. Filings show DraftKings executives and family members made contributions to state leaders this year, and the company gave $50,000 to a nonprofit aligned with the governor. DraftKings has maintained that its contributions do not determine policy outcomes.

Other states have seen similar contests. Ohio’s governor has criticized sports betting legalization and lawmakers introduced a bill this year to eliminate online sports wagering. Colorado removed proposed prohibitions on prop bets after operators warned of potential revenue losses. A Louisiana proposal to limit prop betting failed after lawmakers cited concerns about state tax receipts.

Industry-backed groups have spent heavily in legislative and primary contests. In Illinois, gambling-linked groups increased spending after a tax rise on sportsbooks, and one candidate reported nearly $200,000 in negative spending before a primary. In Pennsylvania, operators and allied groups contributed more than $8 million to back candidates opposed to higher sportsbook taxes. Georgia registered more than $10 million in gambling-linked political spending following an unsuccessful legalization effort. The American Conservative Fund transferred $3.5 million into an affiliated Texas fund to influence the 2026 cycle. Campaigns and oversight bodies in New York and Alabama questioned the origins and transparency of some gambling-related ads and donations.

At the same time, operators have said they are exploring product expansions. DraftKings executives have described prediction markets as a strategic priority and the company has invested in an in-house exchange platform called DKeX. Flutter executives called prediction markets an incremental customer acquisition opportunity, and Flutter CFO Rob Coldrake emphasized the company will stay disciplined on investment and increase funding only if clear opportunities arise.

On the company’s first-quarter earnings call, DraftKings CEO Jason Robins described forming a super PAC and said the company will test political spending during this election cycle and then assess whether to continue the approach. Company filings and public statements show operators are funding state political activity while also developing new products such as prediction markets.