DraftKings, FanDuel Get Middling Return on Investment in Alabama Primaries

^{The state of Alabama has seen sports betting companies back pro-gambling expansion senate and house candidates with massive campaign contributions. (Photo: 3D generator / Alamy)}

DraftKings, FanDuel, and Fanatics were behind an effort to spend millions to support pro-gambling expansion candidates in Alabama’s primary elections on Tuesday. But while the raw results from that effort look good on paper, it’s less certain that the companies made any progress towards the legalization of sports betting in the state.

According to a report by Bloomberg’s Emily Birnbaum, 12 of the 17 Alabama Senate and House candidates that were backed by the American Conservative fund appeared to win or significantly lead in their primary elections.

Big Spending, Questionable Impact

The American Conservative Fund is a political action committee (PAC) which reportedly spend more than $9.3 million on Republican primaries in Alabama. The PAC, which has also flexed its muscles in primaries in other states, raised the entirety of its $26.6 million from Win for America, according to campaign finance records. Win for America, in turn, is funded by sports betting companies including FanDuel, DraftKings, and Fanatics.

The stakes in Alabama could be huge. The state is one of the few that doesn’t offer a lottery, online gambling, or sports betting in any form. But in 2024, the state legislature nearly passed a bill that would have allowed voters to consider a constitutional amendment to allow gambling expansion, passing the Alabama House by a wide margin before coming up one vote short in the Senate.

Considering the razor tight margin of that vote, a solid record of backing primary candidates might seem like a big win for pro-gambling forces. But a closer look at the data reveals a different story.

Of the seven senate candidates backed by the American Conservative Fund, six were incumbents, one of whom lost. The one new candidate backed by the PAC also lost their bid. Meanwhile, house candidates backed by the organization included seen incumbents that went 5-2 in their races, while two of the three challengers supported on Tuesday won or led in their races.

Losing two incumbent pro-gambling House members and supporting two winning challengers likely leaves the American Conservative Fund right where it started. The story is even worse in the Senate, where it is now down one incumbent without any winning challengers to bolster its numbers.

The PAC failed to help Doug Harwell win his primary for a Mobile-area state senate seat, despite spending $2.2 million on the race. And at least one incumbent state representative supported by the group – Francis Holk-Jones (R-Baldwin County) – is facing a runoff.

Coalition Calls for Investigation into Gambling Contributions

Those results come after a coalition of nine organizations asked state officials to investigate the significant gambling-related contributions coming into campaigns in the state prior to the election.

“Public confidence in Alabama’s electoral system depends on transparency, accountability, and consistent enforcement,” the coalition said in a letter. “At a time when citizens are increasingly concerned about the role of money in politics, a thorough and timely review is essential to restore public trust.”

Ultimately, the gambling money may not have shifted the results of many races, nor may it have shifted the balance of power on gambling issues in the state legislature. But some experts in the state say that the gambling firms behind the American Conservative Fund may be playing a longer game with their contributions.

“The word on the street is these guys really wanted to show what they’re capable of and send a message to the legislature,” Jeff Poor, editor for Breitbart TV and host of the Jeff Poor Show on Mobile’s FM Talk 1065, told NBC 15 News. “You might want to be on our good side when the gambling discussion comes up, because this is what we’re doing now. What might we do in the future?”