DraftKings is mad as hell and isn’t going to take it anymore; at least when it comes to the new $.50 per wager tax that’s set to get into effect in Illinois this fall. The sports betting giant is responding to the tax hike with the formation of a Political Action Committee (PAC) with the very creative title – the DraftKings Inc. Political Action Committee.
PACs, and more specifically Corporate PACs like the one DraftKings is forming, are a means for individuals and corporations to influence US politics. Not only will a PAC lobby individual members of the US Congress, they can also donate up to $5,000 to individuals running for office each election cycle. A Corporate PAC is necessary because businesses are required to separate corporate funds from those used to support politicians.
The DraftKings Inc. PAC will be headed up by DraftKings Senior Director of Federal Affairs Lauren Pfingstag Vahey with the help of Senior VP & Deputy General Counsel Griffin Finan. Though the PAC is mainly there to fight the Illinois tax, it will be based in Fairfax, Virginia.
A DraftKings spokesperson explained the reasoning behind the PAC to SBC Americas saying, “The recent tax increase in Illinois makes it harder to provide the best service to our players while it simultaneously incentivizes more players to wager in the unregulated, illegal market.
“Among other things, we are monitoring a range of regulatory, tax, and licensing policies around the country, including the recent tax increase in Illinois. In addition, DraftKings may prioritize issues that impact business operations, including the expansion of the legal, regulated online betting market,” he added.
DraftKings is hardly the first gaming operator to walk this path of political influence. MGM Resorts, Caesars Entertainment and the American Gaming Association all have Corporate PACs advocating for their interests.