DraftKings and FanDuel are making significant financial contributions to the 2026 midterm elections, marking a strategic shift from state to federal political engagement.
This move aligns with their efforts to influence federal regulations that could affect their expansion and advertising strategies.
Traditionally, DraftKings and FanDuel have focused their political contributions on state-level politics. However, recent filings with the Federal Election Commission (FEC) reveal that both companies are now heavily investing in federal elections. This shift is occurring amidst increasing scrutiny of online sports gambling due to scandals and research linking it to rising problem gambling rates.
The financial contributions from these gambling giants are significant. On December 16th, 2025, DraftKings donated $500,000 to the Senate Leadership Fund (SLF), a Super PAC supporting Republican Senate control. They also contributed $2 million to Win For America, a new PAC, which funnels substantial sums to other Republican-aligned groups.
Notably, DraftKings has not made equivalent donations to Democratic PACs, indicating a tilt towards Republican support.
FanDuel’s contributions follow a similar pattern. On December 24th, the company donated $500,000 each to the SLF and the Congressional Leadership Fund (CLF), supporting Republican candidates. However, FanDuel also contributed equally to the Senate Majority PAC (SMP) and the House Majority PAC, which back Democrats, reflecting a more bipartisan approach compared to DraftKings.
These donations are part of broader efforts to counter federal legislation that could limit their growth. Proposed laws such as the SAFE Bet Act aim to regulate online sports gambling more strictly, banning certain advertising practices and financial incentives. Additionally, the GRIT Act seeks to allocate a portion of federal sports excise tax revenue to gambling addiction treatment, which the industry opposes.
DraftKings and FanDuel are also expanding into prediction markets, allowing bets beyond sports into areas like politics and economics. This expansion requires navigating federal regulations, as prediction markets fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC). The companies’ departure from the American Gaming Association (AGA) underscores their desire to tailor their lobbying efforts more specifically.
The implications for the gambling industry are significant. As these companies push for favourable federal policies, they face increasing public and legislative scrutiny over the social impacts of their operations.
The outcomes of the 2026 midterms could significantly influence the regulatory landscape for online gambling, affecting not only DraftKings and FanDuel but the broader industry.
