As DraftKings and FanDuel explore the potential of prediction markets, they are simultaneously investing tens of millions of dollars into state politics to protect the lucrative sports betting revenue that supports their operations.
While executives from both companies have highlighted the importance of prediction markets for future growth, they are also heavily focused on defending traditional sports betting. Through a network of super PACs and affiliated political entities, DraftKings, FanDuel, and Fanatics have collectively poured over $40 million into political initiatives at the state level. This financial backing comes as lawmakers nationwide are considering various measures, including tax hikes on sports betting, advertising limitations, and bans on prop bets, along with broader restrictions on online wagering.
This surge in political spending marks a critical juncture for the industry. In recent earnings calls, leaders from DraftKings and Flutter have discussed prediction markets as a promising avenue for expansion, showing an increasing interest in this sector.
However, despite this enthusiasm, sports betting continues to be the primary source of revenue for the industry, prompting operators to invest significantly in political efforts to safeguard it.
The growing interest in prediction markets has emerged as a significant trend in the gambling landscape for 2026. During the first-quarter earnings call, DraftKings executives emphasized prediction markets as a strategic priority and a means to attract users in states where sports betting is not yet legalized. The company has been actively investing in its exchange infrastructure, including the recent launch of its in-house DKeX platform.
Flutter executives have also recognized prediction markets as an appealing opportunity for incremental customer acquisition. CFO Rob Coldrake noted that the company will maintain a disciplined approach to investments in this area, ready to increase funding when viable opportunities arise.
Despite the attention on prediction markets, traditional sports betting remains the backbone of the industry’s business model, which likely explains the substantial political contributions from operators.
Federal Election Commission filings reveal that DraftKings, FanDuel, and Fanatics have contributed around $42 million to a super PAC network named Win for America, established in late 2025. FanDuel contributed approximately $19.5 million, DraftKings $17.5 million, and Fanatics $4 million. Interestingly, prior to this year, DraftKings had only donated $2 million to this PAC.
Much of the funding has been funneled through organizations like the American Conservative Fund and American Future, which have directed resources towards political activities at the state level. In the first quarter alone, this network has financed political efforts in over a dozen states, spending upwards of $33 million. In some instances, candidates have distanced themselves from campaign materials after discovering the funding sources.
Massachusetts serves as a prime example of the evolving regulatory landscape. The state is currently deliberating on Sen. John Keenan’s Bettor Health Act, which proposes to ban in-play and prop betting, impose stringent advertising restrictions, and raise taxes on sportsbook operators. Although the measure advanced from committee in March, it has since stalled, with the legislative session set to conclude in July.
Additionally, recent reports from WBUR indicate that DraftKings executives and their families contributed nearly $18,000 to House Speaker Ron Mariano and almost $20,000 to House Ways and Means Chair Aaron Michlewitz earlier this year. DraftKings has also made a $50,000 donation to a nonprofit organization associated with Governor Maura Healey. These contributions have come as lawmakers consider the future of Keenan’s proposal and broader issues surrounding sports betting.