Sports betting PAC spends more than $355k in New York Assembly race

BUFFALO, N.Y (WKBW) — A political action committee funded by two major sports betting companies has spent more than $355,000 supporting Karen Hoak in a New York Assembly Democratic primary race, outspending the combined fundraising totals of all three candidates.

A PAC called New York Future, registered to an address in Texas, is funded almost entirely by app-based sports betting companies DraftKings and FanDuel, who have each given $2.25 million to the PAC.

Campaign filings show New York Future has set up an Independent Expenditure Committee which has spent the $355K on research, digital advertising campaigns and TV advertising in favor of Democratic-endorsed Hoak.

Independent Expenditure Committees are separate from a candidate's own campaign committee. They are permitted under New York State Election Law, but are not permitted to coordinate with a candidate's committee.

Hoak's campaign has raised around $40,000 since the start of the year, according to filings with the New York State Board of Elections. That's a fraction of what New York Future has spent on her behalf, so far. And spending is increasing as the June 23 primary nears.

'FINGER ON THE SCALE'

The other two candidates in the race are Adam Bojak and Kevin Deese. Both separately told me they think the sports betting companies are trying to buy the election.

Bojak has clearly positioned himself against corporate PACs in his campaign, which is why he feels they are supporting another candidate in the race.

"They are not allowing the voters to come to their own conclusions," Bojak said. "They're trying to put their finger on the scale, they're trying to boost someone that they think will be more friendly to them once they get to Albany."

Deese echoed that argument.

"It's not really a surprise that DraftKings and FanDuel are now spending to support another candidate that that they believe presumably would make it easier to take money out of vulnerable western New Yorkers' pockets," Deese said.

THE PROCESS

Hoak is not the only State Assembly candidate endorsed by New York Future. The PAC is also backing five other candidates in their respective Democratic primaries.

7 News has viewed correspondence that suggests the sports betting companies scoped out assembly candidates to support through a lobbying firm called the Parkside Group. They then conducted interviews with receptive candidates.

Both Deese and Bojak were approached by email by Opportunity Works, an organization funded by the Sports Betting Alliance which includes DraftKings and FanDuel. The email said Opportunity Works "provides policy makers and those running for office with clear, fact-based research of the benefits of expanding and protecting online gaming."

"We never responded because we were not interested," Bojak said.

WATCH: Sports betting PAC spends more than $355k in New York Assembly race

Deese took the meeting. The first-time political candidate told me he wanted to hear some of the "fact-based research" touted in the email and did not realize it was an interview. He says he was asked about his stance on online gaming.

"I flunked the interview, and had I known it was an interview, I probably wouldn't even sat for the interview, but I'm damn proud to have failed it," Deese said. "Now, I want to know what did Karen Hoak say in her interview that got them so excited to spend over $350,000 to try and help her beat me," Deese said.

Hoak was unavailable for an interview on Friday, but in a statement said: "An independent expenditure has engaged in this race and many others this year. I cannot be bought."

Her campaign did not respond to a question asking if Hoak denounced the Independent Expenditure Committee or the sports-betting companies that fund it.