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Chavdar Vasilev is a gambling news writer with several years of experience in the iGaming industry. He started creating promotional content but soon found he loved reporting on the industry itself. Since then, he’s delivered...
Read Full BioDraftKings is entering the political arena with the launch of a Political Action Committee (PAC), marking the first time a major sports betting operator has established such a committee.
Lauren Pfingstag Vahey, DraftKings’ Senior Director of Federal Affairs, and Griffin Finan, SVP & Deputy General Counsel, will lead the PAC, which will be under the DraftKings Inc. Political Action Committee name.
DraftKings is not the first gambling company to establish a PAC. Casino operators like MGM Resorts and Caesars Entertainment already have PACs. Also, daily fantasy sports company PrizePicks started a PAC in 2023.
However, DraftKings is the first platform in the sports betting sector with a PAC, signaling a possible rise in direct interest in shaping public policy.
The creation of the DraftKings PAC comes amid factors like scrutiny, antitrust concerns, and tax increases in some states, including Illinois.
What Is a Political Action Committee?
A PAC is an organization created to raise and distribute funds to support or oppose political candidates, ballot initiatives, or legislation.
These committees are required to disclose their donors and spending activities to the Federal Election Commission (FEC). They are also subject ot contribution limits.
As corporations like DraftKings are not allowed to donate directly to candidates or party committees, they establish PACs, which corporate stakeholders fund to support candidates aligned with their interests.
There are different kinds of PACs, with the DraftKings PAC falling under a separate segregated fund (SSF). That means the committee can only solicit contributions from individuals connected to DraftKings.
DraftKings’ PAC isn’t the company’s first entry into political spending. According to federal disclosure filings, in 2024. It spent $420,000 on federal lobbying and $502,000 in in-kind donations to President Donald Trump’s inaugural committee.
Why DraftKings Is Launching a PAC Now?
The PAC establishment is a strategic move for DraftKings. It allows the company to employ a two-way strategy for political influence, utilizing both lobbying and PACs.
The former gives it direct communication with lawmakers and agencies. Meanwhile, the PAC can make political contributions to preferred candidates and their campaign committees.
It also comes amid heightened scrutiny and regulatory pressures. DraftKings, along with FanDuel, has faced antitrust concerns. Some lawmakers are accusing the two platforms of working together to “obstruct or impair competition.”
Last year, two bipartisan lawmakers urged the Federal Trade Commission and the Department of Justice to investigate their actions following their 2016 failed merger.
The PAC also comes amid rising tax burdens. About a week ago, DraftKings announced that it would implement a 50-cent surcharge on all bets in Illinois. The operator followed the steps of rival FanDuel, which had made a similar announcement days prior.
The move by the two platforms comes after the state implemented a new tax hike. Recently, DraftKings CEO Jason Robins criticized Illinois lawmakers. He stated that the newly passed legislation will force customers to either spend more money or use illegal platforms.
A DraftKings spokesperson declined to comment on whether the PAC establishment was a result of those issues. Still, he told The Hill that through it, the company hopes to improve the overall experience for players:
“DraftKings’ ultimate goal is to build the best, most trusted, and most customer-centric destination for our players. The recent tax increase in Illinois makes it harder to provide the best service to our players while it simultaneously incentivizes more players to wager in the unregulated, illegal market.”
The spokesperson added that the company is monitoring various policies, including regulatory, tax, and licensing matters, across the country, as well as the expansion of sports betting.
