The Influence of Barstool Sports on Pennsylvania’s Budget Talks
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A Tension-filled Atmosphere in Harrisburg
As Pennsylvania lawmakers convened to negotiate an eagerly anticipated budget, an unexpected voice emerged in the debate: influencers from Barstool Sports. Their lively messages reached millions of followers, declaring that Harrisburg was poised to tax their enjoyment.
While no formal plans existed publicly to levy new taxes on gaming and sports betting, behind the scenes, Democratic leaders were attempting to persuade Republican counterparts to agree on a deal. This deal would propose higher taxes on these forms of entertainment to fund public transit projects. However, these provisions did not make the cut in the final budget signed on November 12.
The Rise of Digital Influencers in Political Discourse
Over a brief span from November 7 to 11, videos from Barstool’s influencers illuminated a shift in how opinions are shaped in this digital age. They raised pertinent questions about what constitutes lobbying, particularly in a landscape where traditional media is increasingly overshadowed by digital personalities.
Max Dolente, a Philadelphia sports blogger, cleverly articulated this sentiment in a video on social media, saying, “Philly fans don’t ask for much, just decent refs and maybe a team that doesn’t break us every other Sunday. Now, Harrisburg wants to break something else: our wallets.” This striking statement captured the emotions of many, positioning the politicians’ decisions as a direct affront to the enjoyment of sports fans.
The Controversial Role of Barstool Sports
Dan "Big Cat" Katz, another prominent Barstool figure, rallied his 1.8 million followers on X (formerly known as Twitter) with the message, “Politicians have a spending problem, and instead of fixing it, they just keep coming after the fans.” His passionate assertion highlighted the growing concern among fans about being priced out of their own enjoyment.
Adam “Rone” Ferrone echoed these fears by stating that “every bet feels like we’re up against the opponent, spread, and Harrisburg’s hand in our pocket.” He lamented the challenges faced by bettors and fans in a rapidly changing landscape of legalized gambling.
Despite the influence of Barstool Sports in these discussions, neither the company nor the influencers involved were registered to lobby in Pennsylvania, raising questions about the legality of their advocacy efforts. DraftKings, a company partnered with Barstool, is registered as a lobbyist but did not clarify whether Barstool was covered under its registration.
The Ethics of Political Influence
Mary Fox, the executive director of the Pennsylvania State Ethics Commission, provided insight into the potential implications of these influencer-driven videos. According to her, the communications could be deemed a form of indirect lobbying under Pennsylvania’s Lobbying Disclosure Law, which governs how business entities can push for legislative changes. Factors like the time and resources allocated to creating these videos would determine whether registration as lobbyists was necessary.
State Rep. Bryan Cutler, a former speaker of the Pennsylvania House, touched on the delicate balance between citizen advocacy and professionally orchestrated campaigns. He emphasized the importance of transparency and accountability in advocacy efforts, urging a clear distinction between grassroots support and organized lobbying.
Legalized Sports Betting: A Booming Industry
Since the U.S. Supreme Court legalized sports betting in 2018, Pennsylvania’s market has exploded. In its inaugural year, the state saw close to $2.5 billion in wagers, escalating to $8.7 billion in the most recent year, generating a significant revenue stream. Notably, most betting occurs online, allowing companies like Barstool to capitalize on this trend as a registered marketing affiliate.
With Pennsylvania applying a steep tax rate of 36% on sports betting—the seventh highest in the nation—it’s no surprise that conversations surrounding tax increases dominated budget discussions. The state collected $175 million in revenue from these taxes last fiscal year, prompting deep apprehension from industry representatives.
Fighting Back Against Tax Hikes
As discussions progressed toward the budget deadline, the Sports Betting Alliance took a proactive stance, spending over $500,000 on TV ads opposing any tax hikes. The alliance, consisting of various high-profile firms like DraftKings and FanDuel, aimed to mobilize public sentiment against proposed tax increases that could soar from 36% to between 50% and 54% for online sports betting.
This escalated tax burden would place Pennsylvania’s tax rates among the highest nationally, potentially forcing companies to pass these costs onto consumers in the form of increased fees.
The Political Landscape of Gambling
In a bid to strengthen their position against potential tax hikes, the Sports Betting Alliance enlisted additional lobbying resources. Long Nyquist, a prominent lobbying firm with established ties to state Senate Republicans, began advocating on the alliance’s behalf. Despite not participating in influencer-driven efforts, its involvement further complicated the intersection of digital media influence and traditional lobbying practices.
As budgets and policies continue to evolve, the impact of digital influencers like those from Barstool Sports will likely remain significant. With a growing community of sports fans united in their concerns, the dynamics of public opinion are shifting in ways that could reshape the landscape of legislative advocacy and accountability in Pennsylvania.