DraftKings Cites Illinois Tax Raise as Reason Behind PAC Formation

The June 9 filing creates the DraftKings Inc. Political Action Committee, which will have a base of operations in Fairfax, Virginia.

Ziv Chen

Last Updated: June 24, 2025 3:26 PM EDT • 3 minute read

DraftKings Cites Illinois Tax Raise as Reason Behind PAC Formation — Pictured: In this photo illustration, the DraftKings logo is displayed on a smartphone screen. Photo by Rafael Henrique / SOPA Images/Sipa USA via Imagn Images.

DraftKings has filed documents with the Federal Election Commission to form a Political Action Committee (PAC) to advocate for political policies impacting its business operations across the United States, citing the recent tax hike in the Illinois sports betting market as one of the causes behind the formation of the committee.

The June 9 filing creates the DraftKings Inc. Political Action Committee, which will have a base of operations in Fairfax, Virginia.

Lauren Pfingstag Vahey, DraftKings' Senior Director of Federal Affairs, will act as PAC chair and Treasurer. At the same time, Griffin Finan, a company SVP and Deputy General Counsel, will assist with its operations. DraftKings indicated that the PAC would contribute to political groups and election candidates supporting DraftKings' policy agendas, particularly gaming regulation, taxation, and licensing frameworks.

As one of the best sports betting sites, DraftKings has also led the way in shaping the outcomes of sports gambling. The company spent over $100 million backing the failed 2022 California ballot initiative to legalize sports betting. In addition, it recently backed funding efforts in Missouri to legalize online sports wagering, a push that gained incremental legislative momentum.

DraftKings also remains a founding member of the Sports Betting Alliance (SBA), an industry association that also includes bet365, FanDuel, BetMGM, and Fanatics as members. It had spent $420,000 lobbying in federal affairs in 2023 and has a history of backing political campaigns through financial donations, including the $500,000 it contributed to Donald Trump's inaugural committee.

The PAC undertaking adds another facet to its current activities of working with and influencing regulatory developments.

Reaction to new sports Betting tax charges

DraftKings is adding a new 50-cent per-transaction fee to Illinois online sports bets as a reaction to the state's new per-wager tax. The new fee will take effect Sept. 1, roughly two months after the new tax takes effect under Illinois' FY 2025 budget.

The new tax, passed earlier in May by the Illinois legislature, requires online sportsbooks to pay at least 25 cents per wager in taxes. That jumps to 50 cents after a site has reached 200 million bets in a calendar year.

While the tax is intended to bring money into the state, DraftKings argues that it imposes a significant economic burden on the business model of companies like theirs.

Flutter Entertainment-owned FanDuel, another of the top Illinois sports betting apps, also stated that it will charge a matching 50-cent transaction fee in Illinois starting Sept. 1. The operator noted that the fee is a result of the increased cost of doing business after the new tax law. FanDuel also indicated that the fee will be rolled back if the law is repealed or modified.

The extra charges are operators' pragmatic attempt to offset the impact of Illinois's per-wager taxation. However, the move raises bigger questions about how future taxation models will affect consumer costs, market participation, and profitability of sportsbook businesses in high-tax jurisdictions.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.