KEY TAKEAWAYS
- Gambling, sweepstakes, and prediction market companies sent more than $1 million to Arizona political committees this election cycle.
- Kalshi money reached a Democratic committee backing Attorney General Kris Mayes just months after she filed criminal charges against the company.
- VGW kept operating in the state for nearly two years after a private cease-and-desist order and spent $360,000 on both parties.
As state lawmakers and regulators continue to enforce Arizona sports betting laws stringently, gambling and prediction markets companies are donating to both sides of the ballot ahead of the 2026 midterm elections.
At least six gambling-linked donors sent a combined total of approximately $1m to Arizona committees during the 2025-26 cycle, according to Arizona Secretary of State campaign finance records. Democratic-aligned committees received approximately $680,000 and Republican efforts received $325,000.
Kalshi donates to both Democratic and Republican parties
One of those donors is Kalshi. Arizona Attorney General Kris Mayes filed 20 criminal counts against Kalshi in March. Four months later, donations from the company landed on her side of the ballot.
Kalshi made a $15,000 contribution to the Navajo County Democratic Committee on July 9, according to a filing that lists DAGA Arizona, the state arm of the Democratic Attorneys General Association, as the intermediary.
The Arizona Republic described the Navajo County committee as a fundraising vehicle supporting Mayes, Gov. Katie Hobbs, and other Democrats.
Hobbs and Mayes, whose offices share responsibility for enforcing state gambling law, face reelection against Republicans Andy Biggs and Warren Petersen.
Kalshi also gave $5,000 to the Republican Party of Arizona on Aug. 28. Kalshi has donated more than $1.5m to state-level funds nationwide this cycle, according to Reuters, as it fights a jurisdictional battle that appears headed to the U.S. Supreme Court.
Which gambling operators donated in Arizona, and to whom?
As well as Kalshi, the donor list includes companies Arizona regulators ordered out of the state, a fantasy operator facing license revocation, and the trade group for the licensed sportsbooks that compete with all of them.
At least five other organizations contributed to various political groups this cycle:
- DraftKings gave $54,500 to DAGA Arizona.
- Fanatics contributed $10,000 to DAGA Arizona.
- Sports Betting Alliance, which represents bet365, BetMGM, DraftKings, Fanatics and FanDuel, donated $335,000 to both Republican and Democratic groups.
- Underdog gave $107,500 to the Navajo County committee through DAGA Arizona on Feb. 9, state records show. It also gave $10,000 on July 13 to Restore Order Arizona, the committee backing Petersen’s challenge to Mayes.
- VGW and its related companies have donated $210,000 to Democratic-aligned committees and $150,000 to Republican-aligned committees this cycle.
How Arizona built one of the toughest enforcement records in the country
The Arizona Department of Gaming (ADG) spent the past two years sending cease-and-desist orders to unlicensed operators, including a variety of sweepstakes operators and unlicensed sportsbooks and online casinos.
The department also sent letters to Kalshi, Crypto.com, and Robinhood over sports event contracts in 2025. Mayes escalated the Kalshi case into criminal charges in March, and the Commodity Futures Trading Commission (CFTC) sued Arizona in April.
U.S. District Judge Michael Liburdi enjoined the prosecution in May, ruling that federal law likely preempts state gambling law for contracts on CFTC-regulated exchanges, according to the order. After the Ninth Circuit Court of Appeals ruled against Kalshi in Nevada on Aug. 28, Mayes asked the appeals court to lift the injunction. The CFTC asked the court to wait until it decides Kalshi’s request for a full-court rehearing.
Underdog took a different route through a similar fight. The department warned the licensed fantasy operator in September 2025 over its prediction markets partnership with Crypto.com, then announced plans to revoke its license on Dec. 5.
Crypto.com halted all event contract offerings in Arizona a week later.
VGW kept operating after private shutdown order
According to recent Arizona Republic reporting, the ADG ordered sweepstakes giant VGW to stop operating in November 2024. The unpublicized order included VGW sites:
- Chumba Casino
- Global Poker
- LuckyLand Slots
VGW reportedly pushed back in an 18-page response comparing its model to a McDonald’s “Happy Meal” sweepstakes. The department rejected that argument eight days later.
As of Wednesday, VGW’s terms of service did not list Arizona among its 16 excluded states.
Licensed sportsbooks hedge tax fight
Meanwhile, the Sports Betting Alliance sent $200,000 to Copper State Values, a Democratic PAC, in four installments. It also sent $5,000 to the Arizona Democratic Party in April 2025.
The alliance also gave $20,000 to the Navajo County committee and $160,000 to the two Republican legislative caucus committees.
Earlier this year, Hobbs proposed a tiered sports betting tax system in Arizona, although lawmakers did not advance the proposal.
