DraftKings Registers Corporate PAC

DraftKings, which in the last decade has grown from a daily fantasy sports site to one of the nation’s largest and most profitable sportsbook and online casino companies, is ready to leverage its lobbying power.

But not as much as $4.8 billion in 2024 revenue would seemingly buy.

According to a filing with the Federal Election Commission (FEC), the company on June 9 will set up DraftKings Inc. Political Action Committee, doing business as DraftKings PAC.

Corporate PACs, despite the name, are funded by employees, executives and stakeholders. They are legally bound to operate using a separate fund from corporate monies. Corporate PACs may only contribute $5,000 per year to a candidate per election cycle but can also support national committees and initiatives at higher levels.

That’s still influential, Lloyd Danzig, the managing partner of venture capital firm Sharp Alpha Advisors, told InGame.

"Even a modestly funded PAC can open doors in Washington and state capitols,” he said, noting he has no specific knowledge of DraftKings PAC. "Lawmakers take note of companies that support their campaigns, even in small amounts.”

A DraftKings spokesperson said the PAC "allows for eligible DraftKings employees, board members and other eligible individuals who share our goal of providing the best-possible platform and experience to support state and federal candidates and organizations who have shown an interest in issues affecting our business.”

"As a technology company operating in a dynamic and highly regulated sector, DraftKings is committed to constructive engagement with policymakers at both the state and federal level,” the company said.

According to the Public Affairs Council, corporate PACs "represent the most transparent money in the campaign finance system.”

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