The effects of spin-induced gain anisotropy on output polarization and threshold current reduction of electrically pumped spin-polarized lasers have been studied. Analytical forms of these parameters are derived by considering diffusive transport from the spin injector to the active region. The calculated values of the parameter are in excellent agreement with values obtained from measurements made at 200 K on an InAs/GaAs quantum dot spin-polarized vertical cavity surface-emitting laser. Electrical modulation of the output polarization of the laser is demonstrated with a peak modulation index of 0.6.