Political Action Committee Established by DraftKings
Published on: June 20, 2025, 03:18h.
Last updated on: June 20, 2025, 03:18h.
Todd Shriber @etfgodfather | Finance & Gaming | Business | Mergers & Acquisitions
DraftKings Launches Political Action Committee (PAC) to Advocate for Favorable Policies
DraftKings (NASDAQ: DKNG) recently filed with the Federal Election Commission (FEC) to establish a Political Action Committee (PAC) aimed at gaining influence over political and regulatory decisions within the gaming and sports betting industry.
A Form 1 filing with the FEC shows the online sportsbook titan has set up its namesake PAC, operating under Separate Segregated Funds (SSF) rules, which allows it to request contributions only from individuals associated with the sponsoring organization[1][3].
Nonconnected committees may be more flexible with their donation requests, soliciting contributions from a broader pool of individuals. The DraftKings PAC will operate from Fairfax, Va., and be managed by Five Rings Law[1].
The Why Behind DraftKings PAC
With sports wagering being heavily regulated, particularly at the state level, it's no surprise that the establishment of the PAC is focused on impacting both federal and state candidates.
While DraftKings has yet to mention a direct link between forming the PAC and specific states, the Illinois tax increase serves as a prime example of the regulatory pressures this industry faces[1]. Recently, Illinois raised its internet sports betting tax for the second time in a year, with a new law mandating a 25-cent levy on the first 20 million booked bets, escalating to 50 cents thereafter[2].
However, DraftKings CEO co-founder Jason Robins mentioned during a CNBC interview that the company didn't receive any warning from Illinois politicians about a potential tax hike in the lead-up to the release of the state's budget[2].
With tax hikes becoming a common concern for the sports betting industry across various states, increased lobbying, especially at the state level, is a logical move for firms like DraftKings[2]. Other states, such as those considering iGaming expansion, may also be adding to the pressure. But, pending bills in these areas have yet to make it through the legislative process[2].
Political Donations and DraftKings History
Although DraftKings didn't officially register a PAC with the FEC until recently, the company has a history of involvement in political donations, particularly over the last few federal election cycles.
As per the chart above, most of DraftKings' contributions have been to Democratic candidates. However, this could stem from the fact that significant gaming markets, like Illinois, New Jersey, and New York, tend to be Democratic-leaning states, rather than an indication of the company being anti-Republican[1].
- DraftKings PAC Filing
- CNBC Interview with Jason Robins
- PAC Insider
- Forbes
- FEC Guidelines
- DraftKings, a company primarily focused on finance and gaming, has established a Political Action Committee (PAC) to advocate for favorable policies in the gaming and sports betting industry.
- The new PAC, operated under Separate Segregated Funds (SSF) rules, will focus on impacting both federal and state candidates, given the heavily regulated nature of sports wagering, particularly at the state level.
- Reports suggest that increased lobbying, especially at the state level, is a logical move for firms like DraftKings, considering the regulatory pressures and potential tax hikes this industry faces.
- Although DraftKings has a history of involvement in political donations, particularly over the last few federal election cycles, most contributions have been to Democratic candidates, possibly due to significant gaming markets in Democratic-leaning states like Illinois, New Jersey, and New York.
