US Gambling Giants Increase Lobbying Spend Ahead of Elections

The US gambling industry is reaching deep into its pockets to shape the political landscape across the United States. Ahead of the upcoming elections, industry leaders such as DraftKings, FanDuel, and Fanatics have significantly increased their lobbying expenditures. This is not merely about minor favors; it is a targeted effort to support politicians across the political spectrum who are open to further liberalization of sports betting and casino gaming. Money has always played a major role in American politics, but the current figures are reaching a new dimension.

Of particular note is the use of Super PACs (Political Action Committees), such as Win for America. These organizations are permitted to accept unlimited donations to promote specific candidates, provided they do not coordinate directly with their campaigns. The goal is clearly defined: legislation should be crafted to pave the way for entry into new markets like Texas or Georgia. While Texas has remained a tough nut to crack for casino operators, efforts in other states are already bearing fruit. Future billion-dollar revenues are being prepared today through political positioning.

Numbers and facts

The financial resources being mobilized are staggering. According to recent reports from Reuters, gambling companies have so far spent at least $72 million on the midterm elections. This places the industry directly behind the technology and crypto sectors in terms of lobbying spend. A prominent example of the power of these investments is Georgia. There, Win for America alone spent $12 million to support 34 candidates sympathetic to gambling. The result was clear: 32 of these 34 candidates won their primaries.

Massive investments are also being made in Texas. Miriam Adelson, the widow of the late Sheldon Adelson and the driving force behind Las Vegas Sands, has funneled nearly $10 million into the Texas Defense PAC. This organization aims to support incumbents who favor casino plans and specifically weaken opponents of expansion. In total, Sands-aligned PACs recently held more than $16 million in cash reserves for the current election cycle.

"Gambling is reportedly among the industries spending the most on the upcoming election, behind crypto and technology, as many operators have increased their lobbying expenses by more than twofold." - Unnamed Analyst, Reuters Report

Background

Why do companies like DraftKings and FanDuel risk so much capital on political bets? The reason lies in the fragmentation of the US market. Each state decides its own gambling laws. While sports betting is booming in many states, conservative lawmakers in populous states like Texas or Georgia continue to resist. The push into Texas by Las Vegas Sands is a long-term project. Sheldon Adelson saw potential in the state for resort-style casinos similar to those in Las Vegas or Singapore due to its size and population.

Another battlefield is the so-called prediction markets. Platforms like Kalshi or Polymarket are increasingly competing with traditional sports betting providers. As these new players are under close scrutiny by authorities, established providers are attempting to secure their market position through political influence. They are part of the Sports Betting Alliance, which advocates for state-regulated sports betting but remains neutral toward prediction markets.

Why it matters for German players

For German players, these US figures might sound like a distant world, but the effects of global market concentration are felt here as well. In Germany, the market is strictly regulated by the State Treaty on Gambling 2021 (GlüStV 2021). While millions flow into US politics to dismantle barriers, we in Germany have clear boundaries: the deposit limit of 1,000 euros per month and the stake limit of 1 euro per round for online slots are core pillars of player protection.

These rules are ensured by the central monitoring system LUGAS. German players need not worry that lobbying groups can create conditions similar to those in the USA, as the Joint Gambling Authority of the Federal States (GGL) monitors compliance with these strict rules. A German player benefits from this stability, as legality and safety take precedence over aggressive market expansion. The transparency of the GGL whitelist offers a level of security that is harder to find in the often opaque US lobbying system.

What it means for GGL-licensed casinos

Casinos with a GGL license operate in an environment that leaves little room for lobbying in favor of deregulation. While US providers attempt to "buy" laws through donations, German providers must prove that they adhere to the highest standards of addiction prevention and data protection. For GGL-licensed companies, looking at the USA primarily means one thing: competition there is conducted through capital and political contacts, whereas in Germany, it is through regulatory compliance.

An operator on the whitelist has undergone a lengthy process that cannot be shortened by Super PACs. When comparisons are made with operators from Malta or Curacao, a similar picture often emerges as with unrestrained US lobbying: less control, more risk. German players should therefore exclusively rely on platforms bearing the official GGL seal to ensure their money is not part of an opaque political poker game but remains within a protected framework.