Sports Betting Industry Pours $72 Million Into US Midterm Elections
According to reports the sports betting industry has injected over $72 million into US midterm elections, marking one of the most aggressive lobbying campaigns in recent political history. Companies within the industry have directed substantial resources toward ballot initiatives, candidate support, and advocacy efforts that could determine the future landscape of legalized sports betting. The spending underscores the high stakes involved as operators compete for market access and favourable legislation.
Sports Betting Companies Lead $72 Million Campaign Spending
Four major companies account for the entire $72 million expenditure, with DraftKings and FanDuel representing the bulk of contributions. DraftKings donated at least $34 million to political efforts, followed by FanDuel with $27 million. bet365 and Fanatics each contributed $5.5 million to this election cycle.
The sports betting industry channels funds through Win for America, a super PAC that directs resources into two affiliate organizations targeting different political parties. American Future focuses on Democratic candidates, while the American Conservative Fund supports Republican races. This strategic structure allows the industry to influence both sides of the political spectrum simultaneously.
Public Citizen, a corporate watchdog organization, ranks the sports betting sector as the third-largest corporate donor in US midterms, trailing only crypto and technology industries. The PAC’s financial activity accelerated throughout the election cycle, receiving $43 million in the first quarter before adding another $29 million in the second quarter.
Georgia state races demonstrate the industry’s targeted approach. Win for America spent more than $12 million backing 34 legislative candidates through its affiliate PACs. Of those candidates, 32 won their primary races. Pennsylvania also received substantial investment, particularly as lawmakers there considered raising taxes on online sports betting operations.
Why Is the Sports Betting Industry Investing Heavily in Midterms?
Market expansion drives the sports betting industry’s political investment strategy. Operators seek access to states that still ban online betting while protecting existing operations from unfavorable regulation. Sports betting has been legalized in 39 states and Washington, D.C., since the Supreme Court ruled in 2018 that a federal ban was unconstitutional. Over the decade ending in 2024, FanDuel and DraftKings spent more than $20 million pushing their agendas in at least 20 states.
Tax rates remain a primary concern for operators. Arizona proposed increasing taxes on large sports betting operations from 10% to 45%, which would apply only to operations generating $75 million or more in revenue monthly. The increase is expected to bring in $145.9 million in the first year. Such proposals explain why companies target legislators who understand their tax concerns.
Federal lobbying has intensified alongside state efforts. FanDuel spent $1.1 million on federal lobbying in 2025, seven times more than the previous year, while DraftKings spent about $900,000, more than double its prior spending. These companies lobbied for bills restoring full deduction of lost wagers, including the FAIR BET Act and the FULL HOUSE Act introduced by Nevada Democrats. DraftKings also supported the Discriminatory Gaming Tax Repeal Act, which would eliminate the federal excise tax on sports bets.
What Does This Mean for Voters and Future Regulations?
Voters face increasing concerns about corporate influence as DraftKings and FanDuel deploy $61 million specifically to shape state rules on taxes, licensing, advertising, and expansion into markets that still ban online betting. The spending targets candidates sympathetic to industry positions, raising questions about democratic processes and policy independence.
California demonstrates the regulatory battleground ahead. Proposition 27, which would have legalized online sports betting, failed in 2022 with more than 80 percent of voters rejecting the corporate-driven measure. Tribes poured over $200 million into defeating the initiative. Operators and tribal governments now discuss collaborating on future ballot initiatives, potentially creating a single entity containing all 109 recognized tribes that would contract with operators. Sports betting expert John Holden estimates an official announcement could be months or years away because each tribal government must approve any agreement.
Prediction markets add complexity to regulatory frameworks. Lawmakers introduced multiple bills addressing insider trading concerns and seeking to restrict event contracts on sports, elections, and government actions. More than half of states prohibit betting or wagering on elections, with 23 states banning election betting entirely. Thus, federal regulators and state legislators continue grappling with boundaries between financial instruments and gambling products.
