DraftKings and FanDuel's Political Spending in Response to Illinois Sports Betting Tax

In September 2022, Illinois implemented a $0.25 trade tax on every sports bet, resulting in a significant 15% year-over-year decline in sports betting activity within the state. This tax structure, unique among the 30 states with online sports betting, has drawn criticism from industry leaders, including Joe Maloney, head of the national Sports Betting Alliance, who noted that this is the only jurisdiction employing such a per-bet tax. The tax has been compounded by local taxes, such as Chicago's 10.25% sports betting tax introduced by Mayor Brandon Johnson, further exacerbating the industry's concerns.

Exposed by CMDIn These Times

In response to the adverse effects of the tax, American Future, a super PAC funded by DraftKings’ subsidiary DK Crown Holdings, has committed $1.2 million to influence the Democratic primaries for Illinois legislative seats ahead of the March 17 elections. This investment aims to elect representatives who will resist further taxation on the gaming industry. American Future has emerged as the largest outside spender in these primaries, reflecting a marked increase in political contributions from sports betting companies, which have collectively donated over $4 million to SuperPACs this election cycle.

In These Times

Among the candidates receiving substantial support from American Future is Emil Jones III, a state senator facing federal bribery charges, who has received over $263,000. The PAC has also allocated more than $220,000 to support Jaime Andrade, an incumbent in the 40th Legislative District, against democratic socialist challenger Miguel Alvelo-Rivera. Alvelo-Rivera has publicly committed to advocating for higher taxes on wealthy corporations and ensuring legislative integrity. Andrade, who has been in office since 2013, is backed by various establishment figures, including Democratic Congresswoman Delia Ramirez and the Chicago Teachers Union.

Exposed by CMD

The financial strain from the Illinois tax structure, coupled with unfavorable changes in federal tax law, has negatively impacted the stock values of DraftKings and FanDuel's parent companies. DraftKings reported a modest profit of $3.7 million in 2025, while FanDuel's parent company, Flutter, incurred a loss exceeding $400 million. As public sentiment increasingly views sports betting as a potential public health issue, the industry's aggressive political spending reflects its urgent need to protect its profit margins against rising state and local taxes.

Exposed by CMD

Critics of the sports betting industry's political maneuvering, including Alvelo-Rivera, argue that such spending undermines democratic processes and prioritizes corporate interests over public welfare. Alvelo-Rivera has emphasized the need for transparency and accountability in legislative actions, asserting that the Illinois legislature should not be influenced by corporate money.

In These Times

• “[T]his is the only jurisdiction across all 30 states with online sports betting where this is actually happening,” — Joe Maloney, Head of the National Sports Betting Alliance

In These Times

• “fight to tax wealthy corporations and individuals in Illinois, and… make sure they know our legislature isn’t for sale.” — Miguel Alvelo-Rivera, Democratic Socialist Challenger

In These Times

As the Illinois legislative primaries approach, the outcome may significantly shape the future of sports betting regulation in the state, with implications for both the industry and public policy.

In These Times