• DraftKings has established a corporate political action committee (PAC) to influence state and federal policies affecting the online gambling industry, including tax and licensing challenges. This move highlights the company’s efforts to shape regulatory frameworks while navigating scrutiny over its competitive practices.

BOSTON, MA — DraftKings, the Boston-based sports betting company, has filed paperwork with the Federal Election Commission (FEC) to establish a corporate political action committee (PAC). The move comes as the company looks to expand its influence in the regulated online gambling market and navigate industry challenges, including tax and licensing policies.

The PAC, registered under the separate segregated funds (SSF) category, allows DraftKings to solicit contributions only from individuals associated with its organization. “We have established this PAC to support state and federal candidates and organizations who have shown an interest in issues affecting our business,” a DraftKings spokesperson told The Hill.

DraftKings Faces Scrutiny Amid Regulatory Challenges

The company’s announcement comes amid ongoing scrutiny related to its competitive practices. In recent years, bipartisan lawmakers have urged the Federal Trade Commission and the Department of Justice to investigate DraftKings’ alleged anti-competitive actions, including its attempted merger with rival FanDuel in 2016, which fell apart amid antitrust concerns. Despite these challenges, DraftKings maintains that its focus is on improving the online betting experience for consumers.

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A company spokesperson highlighted Illinois’ recent tax increases on sports wagering as a key area of concern. “The tax hike makes it harder to provide the best service to our players and incentivizes more players to wager in the unregulated, illegal market,” the spokesperson said. DraftKings also plans to monitor and prioritize policies nationwide that impact the industry, including efforts to expand the legal, regulated online betting market.

What Could This Mean for the Industry?

DraftKings’ move to create a PAC signals its intention to play a more active role in shaping state and federal policy around sports betting. As the industry grows, with California and other states considering expanded gambling legislation, companies like DraftKings are positioning themselves to influence regulatory frameworks.

By establishing its PAC, DraftKings underscores the importance of supporting policies that align with its business goals, while raising questions about the ethics of corporate influence in politics.

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