Pennsylvania Sportsbooks Forming Super PAC to Oppose Tax Hike

Sportsbooks in the Keystone State aren’t going to accept a tax hike without a fight.

Ten of Pennsylvania’s online sportsbook operators have announced their intention to form a super PAC ahead of the 2026 midterm elections. They are joining together amid rumors of a potential move to raise their state taxes, which are already among the highest in the US at 36%. The PAC will start with $10 million in funding to support friendly candidates during next year’s election. 

Before announcing the super PAC, sportsbooks were already spreading the word that any additional tax obligations would be passed on to customers. This was something operators did in Illinois, though the strategy's success has yet to be determined. 

While the sports betting industry has been using threats of higher fees and worse odds, those strategies have not been as effective over the last year. That has led several sports betting groups to begin to focus on politics to avoid opponents from gaining office.

Sports betting won’t be the only topic the new PAC will focus on. Pennsylvania also has one of the highest tax rates on online slots, currently 54%.

How Effective Can the Super PAC Be?

US industries pouring money into American politics isn’t new, but the landscape has been changing over the last decade. Voters are divided as they have ever been, leading to a sense of impending doom lurking around the corner. That has led many to heavily invest themselves in politics and further entrench themselves in their own beliefs.

This shift has made topics like sports betting far less relevant. It has also made it far more difficult to get voters to switch party affiliations, even with massive investments from super PACs like the one being formed in Pennsylvania. In fact, large donations traced back to sportsbooks could vault them into the political debate, alienating many of their customers. 

Political tensions aside, sportsbook operators may soon find it far harder to work together. DraftKings and FanDuel, which own the vast majority of the US market share, are both preparing to launch new prediction platforms. Neither has confirmed whether they will offer sports markets, but rumors suggest they will. 

If FanDuel, DraftKings, and any other sportsbooks offer sports prediction markets, it will put them at odds with their rivals. This would threaten a super PAC like the one forming in Pennsylvania and fracture the industry’s ranks.