Online sports betting industry emerges as major midterm donor
Online sports betting companies poured at least $72 million into the 2024 U.S. midterm elections, according to newly released campaign finance data. Their spending highlights the sector’s growing political influence, amid prediction markets like Kalshi and Polymarket drawing fresh scrutiny and intensifying competition across the broader online gambling landscape.
Industry analysts caution that the booming U.S. sports betting market faces direct pressure from these prediction platforms, a new breed of wagering that the administration of President Donald Trump has openly embraced, Reuters reported.
Rising political influence
Watchdog group Public Citizen estimates that sports betting firms have become the third-largest corporate donor in the midterms, trailing only the crypto and technology sectors. Much of their funding, funnelled through super PACs, is aimed at electing candidates sympathetic to industry priorities.
Leading sportsbooks, DraftKings, FanDuel, Fanatics, and UK-based Bet365, have directed millions into Win for America, a super PAC created in 2025. That committee has in turn financed two affiliates: American Future (Democratic-focused) and the American Conservative Fund (Republican-focused). Super PACs can accept unlimited donations from corporations and individuals and spend freely to support candidates, though they cannot contribute directly to campaigns.
A growing “money behemoth”
According to Rick Claypool, research director at Public Citizen, Win for America is becoming another corporate money behemoth, in remarks quoted by Reuters. He compared the group’s spending to the surging influence of the AI and crypto sectors, which together have already topped $100 million in midterm contributions.
The impact is especially visible in state races. In Georgia, Win for America spent more than $12 million through its affiliate PACs as lawmakers debated gambling legalisation. According to the Atlanta Journal-Constitution, industry-backed candidates prevailed in nearly all of the 34 legislative primaries in which money was spent.
Moreover, the Pennsylvania races saw heavy investment, aligning with debates over raising taxes on online sports betting to fund public transportation.
Record contributions
Industry donations surged in 2025. DraftKings contributed $34 million to Win for America, followed by FanDuel with $27 million, and Fanatics with $5.5 million. DraftKings also directed at least $1 million to other committees, while FanDuel added $2 million.
The alliance traces back to 2021, when DraftKings, FanDuel, Fanatics, and BetMGM formed the Sports Betting Alliance to lobby Congress and state legislatures. Notably, BetMGM has not contributed to Win for America.
Legal landscape
Sports betting has dramatically evolved in the United States since its legalisation in Nevada in 1931, followed by restrictive federal laws such as PASPA in 1992. Finally, the landmark 2018 Supreme Court ruling opened the door to widespread legalisation. Since then, 39 states and the District of Columbia have legalised some form of sports wagering, including 33 states that allow online betting, as reported by the American Gaming Association.
According to OpenSecrets, a campaign finance group, lobbying has been more aggressive. For one, FanDuel spent $1.1 million on federal lobbying in 2025, seven times its 2024 total. Meanwhile, DraftKings more than doubled its spending to nearly $900,000.
The U.S. sports betting market is now the largest regulated gambling market in the world, with a total handle of about $165.6 billion in 2025 and forecast to surpass $162–165 billion in 2026. The industry generated more than $16.8 billion in gross gaming revenue (GGR) and over $3.6 billion in state tax contributions. FanDuel and DraftKings dominate, controlling nearly 73–80 per cent of online wagers, according to several media outlets.
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