Bipartisan Betting: How the Democratic Sweep Impacts Sports Ownership Interests
AI-generated image · US National Wire
Despite heavy Republican investment from sports owners, the industry faces a complex landscape as Democrats take control of Congress and statehouses.
Q: How did sports owners attempt to influence the recent midterm elections?
A: As first reported by The Guardian, professional sports owners invested more than $100 million into this election cycle. Many of these owners backed Republican candidates. For example, Dallas Cowboys owner Jerry Jones contributed $1 million to a super PAC for Donald Trump and $250,000 to a committee supporting Ken Paxton. Additionally, former Mavericks owner Miriam Adelson contributed at least $67 million to Republican committees. In Michigan, at least 10 sports owners supported Mike Rogers.
Q: Does a Democratic sweep necessarily threaten the gambling and subsidy interests of these owners?
A: Not necessarily. The Guardian notes that both parties have helped build the system that benefits billionaire sports owners. Democratic governors have been instrumental in expanding legal gambling; New Jersey's Phil Murphy placed the state's first legal sports bet in 2018, Illinois Governor JB Pritzker signed sports betting into law in 2019, and New York's mobile sportsbooks launched in 2022 under Governor Kathy Hochul. Furthermore, Hochul has backed public funding for the Buffalo Bills' stadium.
Q: What is the current conflict regarding prediction markets and the NFL?
A: The NFL is seeking to protect its interests from prediction markets, which the league argues should be subject to state regulation like traditional sportsbooks. On October 8, the NFL asked the U.S. Supreme Court to intervene, noting that football accounted for $1.8 billion in prediction-market trades on the season's opening Sunday. The Guardian reports that the Commodity Futures Trading Commission (CFTC), which answers to Donald Trump, has sued at least nine states to prevent them from applying gambling laws to prediction markets. Additionally, Donald Trump Jr. advises Kalshi, a prediction market company.
Q: How does the shift to Democratic control of Congress affect the regulatory environment for these markets?
A: Because Democrats flipped both chambers of Congress, they will now control the confirmation of the next CFTC commissioners. The Guardian reports that Democrats also authored the majority of the approximately 30 prediction-market bills introduced in this Congress, positioning them as protectors of licensed sportsbooks against new prediction-market competitors.
Q: What specific tax and subsidy issues are currently facing the industry?
A: The industry is currently lobbying the lame-duck Congress to restore a full tax write-off for gambling losses, which Republicans capped at 90% last year. Regarding stadium subsidies, the Chicago Bears are seeking help from Illinois taxpayers for a new stadium. NFL Commissioner Roger Goodell met with Governor JB Pritzker on October 1, suggesting the team is also considering building in Indiana. Additionally, Donald Trump previously threatened to block the Washington Commanders' $3.8 billion RFK Stadium deal unless the team restored its former nickname.