Political committees in Arizona have seen a significant influx of funds from gambling companies during this election cycle, with over $1 million contributed. As the enforcement of state sports betting laws tightens, entities in the gambling, sweepstakes, and prediction market sectors have been donating on both sides of the political spectrum ahead of the midterm elections in 2026.
According to campaign finance records from the Arizona Secretary of State, at least six donors linked to the gambling industry have added up to approximately $1 million to various political committees throughout the 2025-26 election cycle. Democratic-affiliated committees received about $680,000, while Republican groups received roughly $325,000.
Among these contributors is Kalshi, which recently found itself in legal turmoil. In March, Arizona Attorney General Kris Mayes filed 20 criminal counts against the company. Despite this, just four months later, Kalshi made a $15,000 donation to the Navajo County Democratic Committee. The filing indicates that the contribution was facilitated through DAGA Arizona, the local chapter of the Democratic Attorneys General Association. The Navajo County committee is known for supporting Mayes, Governor Katie Hobbs, and other Democrats.
Both Hobbs and Mayes are up for reelection, facing off against Republicans Andy Biggs and Warren Petersen. Additionally, Kalshi also donated $5,000 to the Republican Party of Arizona on August 28. This is part of a broader strategy for Kalshi, which has invested more than $1.5 million in state-level funds nationwide this election cycle, in the context of ongoing jurisdiction disputes potentially heading to the U.S. Supreme Court.
Other notable donations in Arizona include contributions from DraftKings and Fanatics, which respectively gave $54,500 and $10,000 to DAGA Arizona. The Sports Betting Alliance, which represents major operators such as bet365, BetMGM, and FanDuel, chipped in $335,000 to support both Democratic and Republican initiatives. Additionally, Underdog provided $107,500 to the Navajo County committee through DAGA Arizona in early February and later allocated $10,000 to Restore Order Arizona, a committee backing Petersen's bid against Mayes.
VGW, a separate entity connected to the gambling industry, contributed a total of $210,000 to Democratic committees and $150,000 to Republican-aligned groups this election cycle, despite being ordered to cease operations in Arizona in November 2024 following a private cease-and-desist order.
The Arizona Department of Gaming (ADG) has actively engaged in enforcing strict regulations against unlicensed gambling operators, focusing on various sweepstakes and illegal sportsbooks. They addressed players like Kalshi and Crypto.com over compliance issues in 2025, with the intensity of these campaigns increasing since May when a U.S. District Judge granted a temporary injunction hampering the AG’s criminal prosecution against Kalshi.
The ongoing tension reflects a broader battle for regulatory oversight in Arizona, where the ADG has continually issued cease-and-desist orders, including to VGW, which operates several online gaming platforms. After being ordered to halt operations, VGW contested the ruling but continued to operate in the state, highlighting the complexities of the gambling landscape in Arizona as political and regulatory pressures intertwine.
