Online gambling companies and prediction market operators are spending millions to influence Tuesday's midterm elections, seeking to shape America's fragmented betting regulations. With US gambling firms under pressure as prediction markets capture portions of the $17 billion sports betting economy, companies like FanDuel and DraftKings have launched their own prediction platforms, creating a rift within the powerful US gambling lobby. Forty-four state attorneys-general previously urged the Commodity Futures Trading Commission that federal regulation of prediction markets would improperly enable companies to evade state gambling taxes.
The midterm races offer both sides opportunities to elect state officials who will determine future regulatory frameworks. Beyond lobbying prediction markets, gambling firms are advocating for expanded consumer access to sports betting and online casino games, which remain prohibited in some states. This push follows significant market pressure, as Flutter, owner of FanDuel, has lost nearly two-thirds of its market value in 2026, with executives citing the virtual casino segment as critical now that sports betting growth has stalled.
Major operators including DraftKings, FanDuel, Fanatics, and Bet365 have contributed over $80 million to the 'Win for America' political action committee, which funneled funds to state legislative committees. DraftKings and FanDuel each donated $10 million to Tax Relief Nebraska to support measures legalizing mobile sports betting, while Fanatics contributed $600,000 and MGM's Roar Digital gave $500,000. Industry leaders argue that if prediction markets are active in a state, legal sports betting should follow suit.
Source: Financial Times Companies · Summarized by HeadlinesBriefing