DraftKings has set up a corporate Political Action Committee (PAC), in a signal the business is ramping up its lobbying efforts.
DraftKings has set up a corporate Political Action Committee (PAC), in a signal the business is ramping up its lobbying efforts.
The Jason Robins-led business has filed a Federal Election Commission (FEC) form, establishing the DraftKings Inc. Political Action Committee, or DraftKings PAC.
Corporate PACs are organisations used to make contributions to candidates and political parties that share the same policy goals, and represent an important lobbying tool in the US.
Several major gaming businesses already have PACs, including DFS 2.0 operator PrizePicks, as well as Las Vegas tentpoles MGM Resorts and Caesars Entertainment.
According to the FEC filing, DraftKings’ senior director, federal government affairs Lauren Vahey, and SVP, deputy general counsel Griffin Finan will lead the new organisation.
The DFS and online gaming business is no stranger to political spending, having given $502,000 in in-kind donations to president Donald Trump’s inaugural committee, on top of $420,000 in additional federal lobbying last year.
It comes as the company faces new regulatory, legislative and possible anti-trust threats from several different directions.
DraftKings faces new regulatory threats
Several states, notably Illinois, have moved to hike sports betting taxes, which FanDuel and DraftKings have responded by implementing a $0.50 transaction charge on all bets across the state.
Meanwhile, the national mood has continued to sour against online gambling amid a steady series of negative media reports on the activity.
The Senate Judiciary Committee held a hearing on sports betting in December, in which no representatives of the companies or their trade bodies were invited.
Following the hearing, Republican and Democratic senators Mike Lee and Peter Welch jointly called on the FTC to take anti-trust action against FanDuel and DraftKings, which both continue to dominate the national sports betting market.
Rep. Paul Tonko’s SAFE Bet Act, which would significantly shake up responsible gambling and marketing laws nationwide, was also reintroduced to Congress in March, although observers say its chances at passage are slim.