DraftKings launches political action committee as U.S. lawmakers intensify online gaming scrutiny

DraftKings has launched a new corporate political action committee (PAC) as regulatory scrutiny over the U.S. sports betting industry intensifies. The PAC, officially filed with the Federal Election Commission under the name DraftKings Inc. Political Action Committee, will be led by the company’s senior director of federal affairs, Lauren Pfingstag Vahey, and senior vice president and deputy general counsel, Griffin Finan.

The move positions DraftKings among a small group of gambling companies with dedicated federal PACs. Others include MGM Resorts, Caesars Entertainment, and fantasy sports operator PrizePicks, which launched its PAC in 2023. DraftKings is also a member of the American Gaming Association, which operates its own PAC.

Since the Supreme Court overturned the federal ban on sports betting in 2018, the industry has rapidly expanded across 38 states and Washington, D.C., with US wagering reaching nearly $150 billion last year. However, the sector’s explosive growth has attracted closer attention from lawmakers and regulators, particularly around consumer protection, addiction risks, and market concentration.

In Illinois, Governor JB Pritzker recently signed a bill imposing a new per-transaction tax on sportsbooks, prompting backlash from operators. In response, DraftKings and FanDuel introduced a $0.50 transaction fee for bets placed in the state. The operators also argued that the increased tax burden could push bettors toward unregulated platforms.

At the federal level, calls for oversight have grown louder. The Senate Judiciary Committee held a hearing on the sports betting industry last December, though representatives from major operators were not invited. In a follow-up, Senators Mike Lee (R-UT) and Peter Welch (D-VT) urged the Federal Trade Commission to investigate possible antitrust issues surrounding DraftKings and FanDuel, which dominate the market.

Additionally, Rep. Paul Tonko (D-NY) reintroduced the SAFE Bet Act in March, proposing stricter national regulations on gambling advertising and consumer safeguards.

Though DraftKings' PAC is a new step, the company has a history of political engagement. According to federal filings, it contributed $502,000 in in-kind donations to former President Donald Trump’s inaugural committee and spent $420,000 on federal lobbying in 2023.