Sportsbook operators contribute US$41 million to super PAC

Ziv Chen

16 April 2026 at 7:15am UTC-4

Source: Fanatics Betting and Gaming

Email, LinkedIn, and more

The owners of FanDuel, DraftKings, and Fanatics have given a combined US$41 million to a federal political action committee, according to Federal Election Commission filings.

Bloomberg reports that the contributions were made to super political action committee, Win for America. FanDuel Inc. contributed US$19.5 million, while a DraftKings’ parent company provided US$17.5 million, and Fanatics’ subsidiary gave US$4 million.

Article continues below ad

Win for America reported US$7.5 million in cash on hand at the end of the first quarter of 2026. The group has also directed more than US$33 million to other political committees involved in federal and state-level elections: American Future and the American Conservative Fund.

According to Bloomberg, the creation of Win for America marks a shift toward federal-level political activity by gambling companies, which have previously focused on state-level elections.

The super political action committee is also expected to support candidates who favor legal and regulated online sports betting in the US.

Article continues below ad

The move comes as the industry faces policy challenges, including changes to tax law that will affect gamblers. A provision introduced last year limits the amount of losses that can be deducted when calculating taxable income, a change projected to have a financial impact over time.

Sports betting operators are also expanding into new areas, including online prediction markets tied to event outcomes, competing with existing prediction market platforms such as Kalshi and Polymarket.

View Ziv Chen's bio and articles.

Locations:

Verticals:

Sports Betting

Sectors:

Topics:

Dig Deeper

The Backstory

Why the betting lobby is moving to Washington

Big-name sportsbook operators are sharpening their federal playbook after years of fighting statehouse by statehouse. The shift reflects a maturing industry that faces national exposure to tax policy, consumer protection standards and market access questions that can outgrow patchwork state regulation. It also mirrors a broader reality: as legal wagering spreads, the stakes and the sums at risk have scaled up, and strategy is following suit.

The market’s evolution over the past two years shows why. Rapid expansion into new states has collided with uneven state tax regimes and changing federal tax treatment of gambling losses, creating a two-front policy battle. Operators have leaned on state coalitions and local advocates since 2018, when the Supreme Court cleared the way for legal sports betting. Now they are adding federal muscle as they try to protect margins, shape rules for emerging products like prediction markets and keep consumers in regulated channels.

The strategic turn does not replace state lobbying. It builds on it. Several states continue to adjust tax rates, fee structures and eligible bet types, testing how much cost the market can absorb without driving bettors to offshore sites. At the same time, state regulators are pushing to prove legal wagering is safer and more reliable than the gray market, a message that hinges on competitive odds and strong compliance. The tension between tax yield and a healthy regulated market is the through-line of recent developments.

State tax whiplash in Illinois

Illinois has become the leading case study in how fast policy can swing and how directly operators and fans respond. Lawmakers last year raised the online sportsbook tax to 40 percent from 15 percent. This year they layered on a per-bet surcharge, adding 25 cents on each of the first 20 million wagers placed with a licensed book and 50 cents for every bet after that. The levy is part of a broader effort to raise $1 billion for public transit within a $55.2 billion budget, but it landed late in the legislative process and rattled the industry.

The move triggered fast and public pushback from sportsbooks and high-profile media personalities who partner with them. Operators warned the per-bet tax would compress pricing, limit promotions and nudge bettors to unregulated sites with better odds. The Sports Betting Alliance, which includes FanDuel, DraftKings, BetMGM and Fanatics, condemned the change and signaled it would fight similar proposals elsewhere. For a detailed look at the measure and the immediate reaction from companies and influencers, see this report on how Illinois raised its sports betting tax as part of the 2026 budget.

Illinois’ approach underscores a broader policy experiment: whether fixed per-bet fees and high top-line tax rates can coexist with a sustainable, consumer-friendly market. Operators argue those costs are felt at the bet slip. State officials counter that regulated platforms can absorb some of the hit while still delivering consumer protections and reliable tax revenue. The outcome will influence playbooks in other large markets weighing similar levers to fund public services.

New markets widen the map

Even as some states raise costs, others are opening doors. North Carolina legalized online sports betting in 2024 and framed consumer protections as a selling point. Regulators licensed eight platforms and emphasized account security, payouts and responsible gaming tools as the market went live. The first major stress test arrived with the Super Bowl, when residents could legally wager on the game for the first time. For how the rollout worked and who is live in the state, see this piece on North Carolina bettors wagering on the Super Bowl for the first time.

Smaller states are also finding their footing. Vermont marked its first anniversary of legal online betting with a January handle of $23.8 million, up 19.8 percent from the month it launched in 2024. With only three licensed operators — DraftKings, Fanatics and FanDuel — the state offers a clean look at how a compact market develops under tight oversight. Basketball led the board by handle, and tax collections topped $800,000 that month. A deeper cut at the early data is available in the report on how Vermont marked one year of legal sports betting.

The expansion narrative is central to the federal turn. As more states come online, companies face a rising cost of compliance across different rulebooks. A national advocacy push can target higher-level questions — from advertising standards to the treatment of newer bet types and data integrity — that spill across borders and are hard to harmonize one state at a time.

Operators’ financial pulse in Kentucky and Kansas

Recent figures from mid-size states show the competitive pressure behind the policy fight. In Kentucky, online wagers climbed 15.5 percent year over year in March to $284.9 million, but adjusted gross revenue fell 10 percent to $18.8 million and tax take slipped to $2.6 million. The divergence highlights how promotions, hold, event outcomes and product mix can swing results even when betting volume grows. DraftKings and FanDuel led by handle, though FanDuel’s monthly revenue declined. See the breakdown of wagers, revenue and operator standings in the update on Kentucky online sportsbook wagers.

Kansas posted a sharper revenue jump in February. Total sportsbook revenue rose to $23.9 million from $3 million a year earlier on $209.5 million in settled wagers. DraftKings and FanDuel again topped the table, and Fanatics showed momentum after taking over from PointsBet in 2024. The results point to how shifts in operator lineup and pricing can change the revenue curve even without a large change in total wagers. The state-level details are in this report on how Kansas online sportsbook revenue climbed more than $20 million year over year.

These snapshots help explain why operators are pressing for consistent, predictable policy. When monthly revenue can swing widely based on events and promotions, an added per-bet fee or a steeper top-line tax can force changes to odds and offers that consumers notice immediately. That, in turn, affects where bettors choose to place wagers.

What’s at stake for bettors and budgets

The policy arc now runs on two tracks. States are calibrating how to maximize legal-market participation while capturing tax revenue. Operators are seeking stable rules and lighter-touch taxes to compete with offshore books and grow responsibly. Bettors sit in the middle. They want competitive odds, reliable payouts and strong consumer protections. How lawmakers balance these priorities will determine whether the legal market keeps gaining share from the gray market or stalls under higher costs.

The move by leading operators to invest more heavily in federal advocacy signals a longer game. With more Americans betting in regulated markets, Congress and federal agencies could shape the environment through tax policy, financial regulations, advertising standards or data privacy rules. The industry’s wager is that engaging now can head off fragmented outcomes later.

For states looking at Illinois’ new surcharge, the calculus is immediate: short-term revenue versus long-term market health. For newer markets like North Carolina and Vermont, early choices on licensing, taxes and consumer protections will set the tone for growth. And for operators charting a path to profitability across dozens of jurisdictions, the federal pivot is about building a ruleset that scales.