DraftKings Boosts Lobbying Efforts

DraftKings Boosts Lobbying Efforts

Daily fantasy operator DraftKings reported $80,000 in lobbying spending for the fourth quarter, up from $10,000 in the third quarter, according to a congressional disclosure released Wednesday.

Competitor FanDuel, meanwhile, posted $20,000 in lobbying expenses, unchanged from the previous quarter. Neither young company reported lobbying activity before the third quarter.  Both companies have raised more than $350 million, backed by venture capital firms and media giants. 

Some states such as New York and Texas have ruled the activity "illegal gambling".  Both firms are fighting efforts by these state Attorney Generals.

Both companies spent heavily in Florida over the past quarter at between $10,000 and $30,000.  The Sunshine State was one of the first to express concern over the explosive new industry.   A series of class action suits, mostly dealing with misrepresentation in advertising, have sprung up over the past year.

A FanDuel spokeswoman said the company was "working with lawmakers across the country" to craft regulations that would "protect consumers." A DraftKings spokesman added that it has "actively engaged" with lawmakers to ensure fans can "play the games they love."

- Aaron Goldstein, Gambling911.com

By Aaron Goldstein