Sportsbooks Back Super PAC to Promote Sports Betting Legalization

Several of the nations biggest sports betting sites are teaming up for a shared political goal.

Sportsbook operators DraftKings, FanDuel, Fanatics, and bet365 have contributed about $48 million to the super PAC, named ‘Win for America’, which is supporting a network of state PACs and has already spent over $20 million on primary elections in six states, including Texas and Georgia, where sports betting is not yet legal.  

According to Axios, Win for America is expected to be active in as many as 15 additional states before November, including in the Pennsylvania sports betting and New York sports betting markets. The group reportedly raised $41 million during the most recent reporting period, with an additional $7 million raised afterward, including a contribution from bet365. 

"These organizations seek candidates who will thoughtfully approach regulation and ensure legal sports betting can continue to support communities through billions in tax revenue and jobs across America," a PAC spokesperson told Axios. 

The rise of prediction market apps has affected the sports betting sector, as some industry executives predict that lawmakers may seek to legalize traditional sportsbooks to avoid losing potential tax revenue.  

At the same time, sportsbooks are fighting regulatory pressure in several states, including increased taxes in the Illinois sports betting market, efforts to reverse mobile betting legalization in the Ohio sports betting market, and proposals to restrict certain types of bets in the New Jersey sports betting market.

Several of the best sports betting sites, such as DraftKings and FanDuel, have also launched their own prediction market platforms to reach users in states where traditional betting is not available, though this has created tension with state regulators, who have pushed back against prediction markets. 

DraftKings-backed spending targets Illinois legislative races 

A recent example of the sportsbook sector funding political campaigns came in the Illinois state legislative primaries, where companies sought to counter regulatory measures and higher taxes. 

A super PAC known as American Future, funded by DraftKings subsidiary DK Crown Holdings, spent approximately $1.2 million during the Democratic primaries for Illinois legislative seats. The spending made it the largest outside contributor in those races. 

The investment followed changes to Illinois tax policy introduced last year, including a $0.25 tax on each bet, which the industry claims led to a 15% year-on-year decline in wagers. 

American Future supported several candidates across multiple districts. In the 40th House District, more than $220,000 was spent backing incumbent Jaime Andrade against challenger Miguel Alvelo-Rivera. Additional spending included support for Emil Jones III, who received more than $263,000, as well as funding for candidates in the 13th, 34th, and 84th districts. 

The Illinois tax structure differs from most other states by taxing individual bets and not winnings.  

Industry representatives have stated that this approach is unique among states with legal online sports betting and has contributed to a decline in activity. Local tax measures, such as the 10.25% sports betting tax imposed in Chicago, have also been criticized by the industry.