DraftKings Launches Its Own PAC to Further Industry Causes

DraftKings, one of arguably two dominant sports betting companies in the United States, has filed with the Federal Election Commission (FEC), seeking permission to launch its political action committee (PAC), the firm’s first.

DraftKings Files the Paperwork to Form Its PAC

According to the Form 1 filing submitted to the FEC, the company is seeking to launch the “DraftKings” PAC, which will be regulated under separate segregated funds (SSF) rules, meaning it would only be allowed to engage with donors who are already involved in a sponsoring entity.

The new PAC will be represented by Five Rings Law and operates in Fairfax, Virginia, while DraftKings itself is headquartered in Boston, Massachusetts.

The PAC will also focus on both federal and state candidates, as the issue it seeks to address will most likely involve hot-button topics such as the recent tax increase in Illinois, as well as the changing regulatory landscape across the nation.

The PAC may also exert influence over important issues of the day, such as prediction markets and sweepstakes casinos. Another likely benefit from forming this PAC would be DraftKings’ ability to continue to advocate for iGaming expansion.

As the sports betting market becomes more challenging, pressured by both prediction market models as well as tax increases, online casinos could help companies such as DraftKings swing back to stronger financial results in places where sports betting revenue, and especially profit, have been moribund.

DraftKings is Experienced in Political Matters Already

As to DraftKings’ political overtures, this is hardly the first time that the company has been involved in political matters, although, frankly, the company has never followed Big Tech’s example in forking out huge amounts of money all at once.

In 2024, for example, DraftKings donated $463,702 in total, with a bit more of the money (about 59.53%) going to Democrats. Republicans, however, have received the rest of the money, as the operator remains fairly neutral in political matters, that is, unless they have a direct impact on its business model.

Responding to the Illinois tax increase, DraftKings introduced an initially controversial surcharge that will now remain in place.