Sensing potential for change in the manner in which the U.S. legal sports betting market will be regulated in the future, the leading online sports betting sites in the American industry are suddenly placing an
increased focus on lobbying efforts
aimed at the federal government.
Both DraftKings and FanDuel, the top two U.S. online sportsbooks in terms of revenue generated, are spending millions of dollars in lobbying efforts aimed at members of the federal government.
Between the two sites, FanDuel and DraftKings control approximately 80% of the U.S. sports betting market. In the past, these two sportsbooks have focused their efforts on lobbying at the state government level, spending more than $20 million between them between 2018-2024.
That only made sense. Since all sports betting is regulated on a state level, that’s where a group seeking access to the market would want to make its lobbying efforts.
However, there’s been a noticeable uptick in federal lobbying spending by DraftKings and especially FanDuel over the past year.
FanDuel invested $1.1 million in federal lobbying efforts during 2025. That was a seven-time increase compared to what the company had spent during the previous year. The 2025 DraftKings federal lobbying spend was around $900,000. That was more than double what DraftKings invested in federal lobbying over the previous year..
U.S. sportsbooks see the potential for a change in how sports betting is regulated in the country
The genesis of this paradigm shift in lobbying efforts by U.S. sports betting sites is being driven by a perceived change that the sportsbooks believe is coming in the way in which they are regulated.
According to Jonathan D. Cohen, the Sports Betting Policy Lead at the
American Institute For Boys And Men (AIBM), this shift in lobbying efforts is being created by the perception that the U.S. Congress may be delving into more regulatory policy efforts when it comes to the legal and regulated U.S. sports betting industry.
Entering an election year, this has the potential to become a hot-button issue during the midterms.
“Even if Congress does not pass a sweeping bill in 2026, sports betting and prediction markets will likely inform campaign messaging during the midterm cycle,” Cohen noted. “Debates can shift quickly from technical policy into cultural politics, with sports leagues, broadcasters, and state regulators all pulled into the fight.”
A poll conducted in November 2025 by Ipsos discovered that nearly 41% of Americans believe that the federal government should become more involved in the regulation of sports betting.
Cohen is of the opinion that the sports betting sites recognize this potential for change in who governs them and want to get out ahead of the issue. He also thinks that most in the federal government are still becoming familiar with the inner workings of the sports betting industry.
“There’s not yet been the public reckoning or awakening to the issue and to the harms of the issue,” Cohen said.
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