Online sports betting companies such as DraftKings, FanDuel, and others have significantly increased their expenditure in the U.S. midterm elections, reaching at least $72 million so far. This is in response to growing competition from prediction markets like Kalshi and Polymarket. These markets pose a fresh challenge to the online sports gambling industry.
The lucrative nature of the U.S. online sports gambling business faces what some consider a direct threat from the rise of prediction markets. This trend aligns with the support from the Trump administration. Public Citizen, a corporate watchdog, estimates that the industry ranks as the third-largest corporate donor in the U.S. midterms, following crypto and technology sectors. This spending aims to elect candidates who are likely to support the industry’s interests.
Prominent sports betting companies such as DraftKings, FanDuel, Fanatics, and UK-based bet365 have invested in Win for America. This super political action committee (PAC) directs funds into two affiliate PACs targeting Democratic and Republican state races: American Future and the American Conservative Fund, respectively.
Super PACs can accept unlimited donations from corporations and individuals, spending unlimited amounts to support specific candidates without direct coordination or donations to them.
Rick Claypool from the nonprofit research group Public Citizen highlighted the unprecedented spending by Win for America, comparing it to AI and crypto sectors, which have each exceeded $100 million in the midterms. Win for America and FanDuel did not offer comments, while DraftKings, Fanatics, and bet365 did not respond to requests for comment.
While supporting candidates does not guarantee future legislation, businesses invest in the hope that these ties will yield favorable outcomes. The financial impact is already noticeable in some state elections. In Georgia, Win for America funneled over $12 million into state races via the American Conservative Fund and American Future, influencing gambling legalization legislation.
The investments impacted 34 legislative races, with industry-backed candidates winning all but two, as reported by the Atlanta Journal-Constitution. Both American Future and American Conservative Fund did not respond to comments. Neither did Polymarket and Kalshi.
Win for America is also channeling funds into Pennsylvania races, where discussions about raising online sports betting taxes to support public transportation are underway. Federal election records show the industry initially contributed $43 million to Win for America in the first quarter, followed by $29 million in the second. These figures do not fully capture all state race contributions or allocations to undisclosed donor groups (dark money groups).
The formation of the Sports Betting Alliance by DraftKings, FanDuel, Fanatics, and BetMGM in 2021 marks a collective effort to lobby Congress and state legislatures to maintain the legality of online gaming nationwide. Though BetMGM has not contributed to the super PAC, DraftKings has donated at least $34 million, FanDuel with $27 million, and bet365 and Fanatics with $5.5 million each during this election cycle. Bet365 donates through its U.S. subsidiary, Hillside (Shared Services US) LLC.
A Supreme Court ruling in 2018 overturned a federal ban on most states legalizing sports betting. This decision led to 39 states and the District of Columbia legalizing some form of sports betting, including 33 states that allow online sports betting, as reported by the American Gaming Association.
The industry has increased its lobbying efforts in recent years. OpenSecrets, a campaign finance watchdog, revealed that FanDuel spent $1.1 million on federal lobbying last year, marking a sevenfold increase compared to 2024. DraftKings has also more than doubled its lobbying budget to approximately $900,000.
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