Gambling interest groups are spending big in campaigns ahead of the Pennsylvania primaries this month.
The Super PAC Win for America, which is funded by sportsbooks FanDuel, DraftKings, and Fanatics, has now given over $5 million to Win for Pennsylvania.
The money is largely used to back incumbents’ campaigns after gambling groups successfully lobbied to prevent increases in the state’s sports betting tax. Pennsylvania takes 36% of sportsbook revenue in taxes.
The Win for America PAC primarily supports Republican candidates. Money has been used in Pennsylvania to back the campaigns of Sens. Lisa Baker, Camera Bartolotta, and Chris Gebhard, according to a report from Spotlight PA.
Sportsbooks Thankful For No Tax Increase
Primarily, gambling companies are backing the candidates who declined to raise taxes on the industry in last year’s budget.
After the budget passed with no increase, the Sports Betting Alliance (SBA) ran ads thanking Gebhard and Senate Majority Leader Joe Pittman for “standing with PA sports fans and against raising taxes.”
The SBA, which includes the three sportsbooks funding Win for Pennsylvania, as well as bet365 and BetMGM, argues that increasing sports betting taxes would “force the companies to pass on the costs to consumers.”
Companies largely passed on the costs to consumers when hit with a new per-bet tax in Illinois last year. The SBA has sued the city of Chicago after it added another levy on top of the new betting surcharge.
Esports Betting Push Could Be Renewed
Republican politicians have also introduced legislation to expand legal betting in Pennsylvania, including allowing esports gambling.
Rep. Ed Neilson introduced HB1636 last year, which would legalize esports betting and give the Pennsylvania Gaming Control Board the power to authorize other events as it sees fit.
The legislation was referred to the House Gaming Committee in June last year, but has not made any progress since.
If the gambling-backed incumbents win re-election, it could help renew the push for esports gambling to be authorized.
Pennsylvania Proposes Regulating Esports Prediction Markets
In the meantime, residents can wager on esports prediction markets, but the state has also introduced legislation to regulate this.
A group of Democrats introduced HB2497 last week. The bill proposes charging prediction market platforms a $1 million license fee and imposing a 20% tax on revenue.
The legislation would also allow the Board to restrict certain markets relating to “sensitive matters,” including elections, military conflicts, judicial rulings, and natural disasters.
It would not, however, restrict esports or other markets on sporting events.
Skill Gaming Industry Spending On Rival Campaigns
Another key gambling interest in the elections is coming from the skill gaming industry. Sen. Bartolotta, who has been backed by the sportsbooks, said skill games proponents are “trying to take the Senate of Pennsylvania hostage” through campaign spending.
Citizens Alliance, a conservative political group funded almost entirely by skill game developer Pace-O-Matic, has spent millions of dollars in campaigns against Bartoletta, Baker, and Gebhard.
Gebhard introduced a bill that would restrict and tax skill games across the state. Cliff Maloney, CEO of Citizens Alliance, said the group is “working to hold Senate Republicans accountable that proposed a new tax on certain small businesses.”
Like Bartolotta, Gebhard spoke out against the campaign against him. He stated, “Seeing the sheer power of third-party money, we probably should be having a conversation on: ‘Is this a positive for the system and the people of Pennsylvania?’”
The primaries on Tuesday will give an indication of which group has spent its money wisely.