ILLINOIS — Reacting to the state’s recently passed gambling tax hike, sports betting giant DraftKings has launched a new political action committee (PAC) to engage in political advocacy at both state and federal levels.
The move comes as DraftKings faces a shifting legal and tax environment across the U.S., particularly in Illinois, where lawmakers approved a significant increase in the sports wagering tax as part of the state’s $55.2 billion budget.
Illinois Tax Hike Draws Corporate Pushback
DraftKings specifically cited the recent Illinois tax increase as a key reason behind the formation of the PAC, saying the change threatens their ability to offer competitive service in a regulated environment.
“The recent tax increase in Illinois makes it harder to provide the best service to our players while it simultaneously incentivizes more players to wager in the unregulated, illegal market,” a company spokesperson said.
The company said it created the PAC to support political candidates and organizations that back business-friendly betting regulations and to advocate for policies that ensure a sustainable market.
Details of the PAC’s creation were confirmed in a report by NEXT.io, which highlighted the regulatory pressures DraftKings is currently navigating in multiple states.
Monitoring Policy, Licensing, and Market Expansion
DraftKings emphasized that the company is closely tracking regulatory trends nationwide — especially as the pace of legal iGaming and sports betting expansion has slowed in several states.
The company’s new PAC is expected to play a role in lobbying around:
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Taxation of online sports betting
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Licensing and regulatory frameworks
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Intervention against potential federal legislation
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Protecting the legal online betting market from illegal operators
“DraftKings’ ultimate goal is to build the best, most trusted, and most customer-centric destination for our players,” the company said.
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PAC to Follow Campaign Finance Law
DraftKings stressed that its PAC will comply fully with federal and state campaign finance laws, including all disclosure and reporting requirements.
As a tech-forward company in a highly regulated industry, the firm says it aims to engage constructively with lawmakers while advocating for what it calls a “fair and sustainable regulatory environment.”
The PAC filing comes amid growing pressure on operators in Illinois and other large states to absorb higher costs — while trying to prevent a migration of players back to unregulated gambling platforms.
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