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(AsiaGameHub) –   Top US sports betting operators FanDuel, DraftKings, and Fanatics significantly boosted their political expenditures last quarter, directing a combined $42 million to political action committees.

Each of the sportsbooks made major contributions to the Win for America Super PAC during the quarter.

While DraftKings had previously given $2 million to the PAC, its latest donations surged to $17.5 million, as shown in FEC records. FanDuel donated an even larger sum of $19.5 million, and FBG Enterprises, the parent firm of Fanatics Sportsbook, contributed a further $4 million, resulting in the $42 million total.

FanDuel and DraftKings each established their own PACs last year. DraftKings created its PAC, named American Future, which has primarily concentrated on financing politicians who advocate for lower gambling taxes in Illinois.

Folllow the Money

From the $42 million given to Win for America, $7.3 million was channeled to American Future. The bulk of the money, $26.1 million, was routed through the American Conservative Fund, according to an analysis by Gaming America.

The American Conservative Fund mainly backs Republican candidates. From the $26.1 million, the single largest allocation of $6.4 million, was sent to the American Conservative Fund Georgia.

Georgia maintains restrictive gambling regulations, yet its population exceeding 11 million makes it a major potential market. A Senate committee advised the state to legalize sports betting late last year. Securing the support of legislators is a primary objective of this PAC spending.

Texas Targeted for Gambling Expansion

Texas is another key target for gambling operators seeking legal expansion, ranking as the second most populous state after California.

Las Vegas Sands has invested heavily in lobbying for a casino in Texas, while sportsbooks are keen for the state to introduce regulated online betting.

The Texas Sands PAC previously supported James Talarico’s campaigns, and he had voiced approval for establishing a legal casino in the state. However, he has since distanced himself from corporate PACs and wealthy donors. He secured the Democratic primary victory by running on a platform that promised to restrict such donations.

From the Win for America funds, $3.5 million was allocated to the Texas Conservative Fund, which works to advance legal gambling in Texas.

A further $3 million was directed to Win for Pennsylvania, an effort focused on protecting the state’s market from additional taxes and regulations. Pennsylvania currently imposes a 36% tax rate on operators, which is higher than in most other states.

Some of these funds are used to support political campaigns of candidates likely to favor beneficial market policies, with the remainder spent on strategic communications and consulting groups.

Will the Gamble Pay Off?

This political investment is itself a gamble, as there is no certainty the contributions will translate into higher company earnings.

DraftKings and FanDuel were the primary funders of a $170 million campaign behind California’s Proposition 27, a measure designed to legalize sports betting. However, voters defeated the proposition, leaving the state’s gambling market closed.

Following the launch of their prediction market platforms, these companies are likely also focusing on politicians who would permit them to offer such markets in states like California, Texas, and Georgia.

Other prediction market platforms like Kalshi and Polymarket are likewise ramping up their lobbying efforts, as are tribal groups and casino operators.

To offset substantial marketing and lobbying expenses, betting firms must maximize their profits, which are derived from customer losses.

This dynamic fuels allegations that gambling companies deliberately promote addictive gambling behaviors. DraftKings and FanDuel are confronting multiple lawsuits that claim the operators employ deceptive practices to increase player losses.

With political expenditures on the rise, a change in the companies’ marketing approaches appears improbable in the near future.