Groups of AGs got thousands from companies their members were policing in 2023

Key players in emerging industries like cryptocurrency and sports betting flooded state attorneys general with cash in the second half of 2023, as the top law enforcement officers have moved to regulate them.

The beleaguered cryptocurrency platform Coinbase, gig-economy companies and sports betting groups gave thousands or tens of thousands each to the Democratic Attorneys General Association or Republican Attorneys General Association in that time, according to documents filed with the Internal Revenue Service last week.

While legal, the donations highlight a common political strategy for businesses or industries navigating challenging regulatory environments. The money unlocks exclusive access at association gatherings and coveted face time with officials outside the courtroom, but it also raises questions about the potential for conflicts of interest between prosecutors and the corporate entities they are charged with policing.

California Attorney General Rob Bonta, a Democrat, is currently probing the lawfulness of daily fantasy sports betting in the state, and other prosecutors have issued warnings of deceptive practices by sports betting companies since the Supreme Court overturned a virtual ban on the industry over five years ago.

Over the last year, the fantasy sports industry has given hundreds of thousands of dollars to associations of attorneys general on both sides of the aisle. A group called Fantasy Sports Operators Coalition gave $125,000 to DAGA, and the Coalition for Fantasy Sports gave about $125,000 to RAGA. The fantasy sports company Underdog Sports gave $35,000 to DAGA, and its competitor PrizePicks gave $750 to RAGA and $25,000 to DAGA. Bonta’s campaign also received thousands from Underdog Sports