Record Political Spending by Sportsbooks and Prediction Markets

The influence money buys in Washington is rarely subtle. This year, it is downright blatant. A staggering wave of cash from sports betting and prediction market companies is flooding the political system. They are fighting for the future of your right to bet on a game or predict an election’s outcome. The numbers tell a tense story.

Sportsbook operators like FanDuel and DraftKings have funneled more than $80 million into state and congressional races. They use a political action committee called Win for America. Federal Election Commission filings show the group raised over $81 million this cycle. Their goal is straightforward. They want to stop new taxes on their booming industry. They also aim to push more states to legalize online casino games, known as iGaming. The American Gaming Association, the casino industry’s main lobby, spent a record $2.06 million on lobbying just through September. It is their highest spend in over a decade.

This is not just about sportsbooks. A parallel battle involves prediction markets. Companies like Kalshi and Polymarket let you trade on events like election results. Kalshi executives have given over $1.6 million to campaigns and PACs. The company itself has spent $1.79 million on lobbying this year. A new coalition backed by Kalshi, Robinhood, and Coinbase has spent another $200,000. They focus their donations on politicians who oversee the Commodity Futures Trading Commission. That is the federal regulator for their markets.

The opposition is fierce and comes from powerful corners. Several state attorneys general call these prediction markets illegal gambling. They want them shut down or regulated state by state. The American Gaming Association agrees. In a statement, they accused prediction market companies of mocking congressional intent on sports betting. They said these sites rob states of revenue and allow teenagers to gamble. Prediction market operators argue their products are financial instruments, not bets. They say they should fall under the CFTC’s exclusive federal oversight.

In Congress, the fight is moving to specific legislation. Senator Ted Cruz plans to introduce a bill after the midterms. It would bar federally regulated prediction markets from offering gambling contracts unless a state or tribe authorizes them. Sportsbooks are also lobbying against federal rules like the proposed SAFE Bet Act. That bill would set national standards for mobile sports betting. Separately, the industry is pushing for a major tax change in the FAIR BET Act. It would let gamblers deduct 100% of their losses. At least six of that bill’s cosponsors have received contributions from sportsbooks.

This spending spree is changing the political landscape. Brianne Doura-Schawohl directs the Campaign for Fairer Gambling. She told Semafor the scale of the giving has spooked many legislators. They worry about their seats and their ability to legislate freely. The Win for America super PAC network has already started running general election ads ahead of the November vote.

You are watching a high stakes investment. These companies are not donating out of civic duty. They are buying a seat at the table where the rules are written. They want to shape regulations before they are set in stone. The outcome will determine whether your next bet is a simple wager or a federally regulated financial contract. It will decide who gets the tax revenue and who holds the power. The game is being decided far from the stadiums, in the quiet corridors of statehouses and congressional committees. The final score will be tallied in laws and regulations that affect every potential bet you might ever make.

• More than $80 million funneled into state and congressional races
• Win for America raised over $81 million this cycle
• Sportsbooks lobbying against new taxes
• Kalshi executives contributed over $1.6 million to campaigns
• Federal regulators involved in oversight
• Lobbying efforts from prediction market companies