![Washington, DC’s Sports Betting Landscape Faces Uncertainty](/img/breaking.png)
Starting July 15, Washington, DC’s sports betting landscape was poised for a significant shift as BetMGM and Caesars Sportsbook prepared to expand their footprint. However, a delayed budget approval by Mayor Muriel Bowser put these plans in limbo, resulting in the cancellation of BetMGM’s planned celebration at Nationals Park.
Betting Expansion Stalls
BetMGM and Caesars Sportsbook had set their sights on bolstering their presence in DC’s lucrative sports betting market. The budget bill was crucial to their expansion plans, but as of Monday night, Mayor Bowser had yet to sign the necessary legislation. The bill, which gained final approval from the DC Council on June 25, was expected to go into effect on July 15.
The delay has momentarily turned the sports betting focus solely on FanDuel. In partnership with the DC Lottery, FanDuel remains the single operating betting platform available to enthusiasts. This development adds an intriguing dynamic to the city’s sports wagering environment, already marked by sharp changes and controversies.
A Troubled Past for DC’s Betting
Washington, DC’s journey into sports betting has been tumultuous. In January 2019, the DC Council approved a single-provider digital market without competitive bidding, extending the contract of lottery vendor Intralot to include sports wagering. However, Intralot's GamBetDC platform was met with widespread criticism for limited betting markets and technical issues, ultimately failing to meet its revenue promises.
After falling short on expectations, the DC Lottery decided to shut down GamBetDC, subsequently forming a new alliance with FanDuel. The shift has already proven beneficial—the handle soared by 450% in the initial month of FanDuel’s online operations compared to GamBetDC's performance in the same period.
Staggering Revenue Gains
FanDuel’s entry into the market has indeed paid off. In May 2023 alone, FanDuel generated $4.9 million in revenue, dwarfing GamBetDC’s $711,282 revenue during the same timeframe. The city stands to benefit from this surge in success, as it garners 40% of the revenue from lottery-backed wagering partners.
The contract expiration for Intralot on July 15 opens the door for new avenues in sports betting, including the introduction of Type C licenses. These licenses, valid for five years, come with a price tag of $2 million and an annual renewal fee of $1 million. Moreover, Type C licensees will pay a 30% tax rate.
Strategic Partnerships and Taxes
The legislation further allows operators to partner with franchises, not just venues, adding another layer of strategic maneuvers in the city’s sports betting landscape. One notable example is FanDuel’s partnership with Audi Field, which provides market access while aligning itself as Audi Field’s partner at a favorable 20% tax rate.
In comparison, BetMGM and Caesars Sportsbook hold Class A licenses, enabling them to offer digital platforms within a two-block exclusion zone around their respective venues, Nationals Park and Capital One Arena. Caesars made a significant move by opening its sportsbook at Capital One Arena in July 2020, with BetMGM following suit at Nationals Park in June 2021. FanDuel's physical presence was established at Audi Field in July 2022, demonstrating the competitive intensity among top betting brands.
Awaiting the Mayor’s Signature
The final shape of Washington, DC’s sports betting market now hinges on the mayor’s approval of the budget bill. The expanded presence of platforms like BetMGM and Caesars Sportsbook promises to enhance both the diversity and competitiveness of betting options available to residents and visitors alike. However, until the budget bill receives the mayor’s signature, the full extent of these plans remains on hold, leaving FanDuel momentarily at center stage.
As industry stakeholders and sports betting enthusiasts await further developments, the potential for a more diversified and dynamic betting market in Washington, DC remains palpable, promising a future brimming with excitement and opportunity.