DraftKings Starts Political Action Committee
Posted on: June 20, 2025, 03:18h.
Last updated on: June 20, 2025, 03:18h.
- Gaming company forms PAC focusing on federal and state candidates
- Move could be in response to latest Illinois tax increase
- DraftKings has already been an active political donor
DraftKings (NASDAQ: DKNG) filed with the Federal Election Commission (FEC) to start its first political action committee (PAC).
A Form 1 filing with the FEC notes the Boston-based online sportsbook giant filed for a namesake PAC and the group will be regulated separate segregated funds (SSF) guidelines, meaning it can only approach potential donors with ties to a sponsoring entity.
SSFs are political committees established and administered by corporations, labor unions, membership organizations or trade associations. These committees can solicit contributions only from individuals associated with a connected or sponsoring organization,” according to the FEC.
Nonconnected committees have more leeway in terms of from whom those groups can solicit donations. DraftKings PAC will be headquartered in Fairfax, Va. and represented by Five Rings Law, according to the FEC filing.
Possible Motivations for DraftKings PAC
DraftKings noted to some media outlets that the newly formed PAC’s focus will be federal and state candidates, which makes sense because sports wagering is a highly regulated industry, particularly at the state level.
On a related note, though the operator did not mention a connection between forming the PAC and this state, Illinois recently raised its internet sports betting tax for the second time in a year. In that state, a newly signed law mandates levy of 25 cents on an operator’s first 20 million booked bets and 50 cents thereafter.
DraftKings co-founder and CEO said in a CNBC earlier this week that the company was in contact in the days leading up to the release of the Illinois budget and those politicians didn’t mention the possibility of a new tax hike.
Increased lobbying, particularly at the state level, is a sensible move for DraftKings and any other company in the sports betting wagering industry because multiple states have raised related taxes this year, several others are expected to join that group, and because bills to legalize the activity are faltering. Additionally, operators are looking to iGaming expansion, which would help cash-starved states, but those bills aren’t making it across the finish line, either.
DraftKings Already Active in Political Circles
Despite not having an official PAC registered with the FEC prior to this week, DraftKings has been an active political donor, particularly over the past three federal election cycles.
As indicated in the chart above, the bulk of DraftKings’political contributions have gone to Democrat candidates, but that may be the result of some of the largest sports betting markets in the US, such as Illinois, New Jersey, and New York, being blue states — not a symptom of the company being overtly against donating to GOP candidates.
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