The evolving landscape of sports betting in Washington, DC has taken another unexpected twist as BetMGM and Caesars Sportsbook gear up for expansion but hit a stumbling block due to a delay in the budget bill’s approval. The legislation, critical for the execution of their plans, is still awaiting Mayor Muriel Bowser's signature.
Originally, BetMGM and Caesars Sportsbook planned to bolster their presence in Washington, DC starting Monday, 15 July. However, with the budget bill’s delayed approval, the celebrations were put on hold. BetMGM notably had to cancel a planned event at Nationals Park.
FanDuel Dominates the DC Market
In the interim, FanDuel, in partnership with the DC Lottery, remains the sole sports betting platform accessible to enthusiasts in the capital. The DC Council gave the final nod to the FY 2025 budget on 25 June, with its enactment scheduled for 15 July. However, the mayor’s delay has left the local betting market in a state of uncertainty.
Back in January 2019, the DC Council had approved a controversial single-provider digital market without a competitive bid process. This decision extended the lottery vendor Intralot’s contract to encompass sports wagering. Intralot’s GamBetDC platform, however, faced criticism soon after for its limited betting markets and persistent technical issues, falling significantly short of its revenue promises.
Shutting Down an Underperformer
GamBetDC’s underperformance led the lottery to sign a new contract with FanDuel, resulting in the eventual shutdown of the beleaguered platform. The switch proved beneficial; the handle shot up an impressive 450% in the first month of FanDuel’s online operation compared to the same period under GamBetDC. In May 2023, FanDuel generated a substantial $4.9 million in revenue, dwarfing GamBetDC’s $711,282 for the same month.
The city strategically partners with lottery-backed wagering platforms, taking 40% of their revenue, bolstering DC’s fiscal health. Meanwhile, Intralot saw its contract expire on 15 July, marking an end to a tumultuous chapter.
Introducing Type C Licenses
The new legal framework brings forth Type C licenses, valid for five years, costing $2 million for issuance and $1 million for annual renewal, with a tax rate set at 30%. Moreover, the new regulations open the door for operators to partner with franchises in addition to venues, further diversifying the betting landscape.
In this redefined market, FanDuel secured its foothold through a partnership with Audi Field, enabling it to operate at a lower tax rate of 20%. On the other hand, BetMGM and Caesars Sportsbook, both holding Class A licenses, capitalize on their digital platforms within a two-block exclusion zone surrounding their respective venues—Nationals Park and Capital One Arena.
Historic Partnerships
Caesars Sportsbook made its mark by partnering with Capital One Arena, where it opened its sportsbook in July 2020. BetMGM followed suit, launching its operation at Nationals Park in June 2021, and FanDuel inaugurated its retail presence at Audi Field in July 2022.
As the capital awaits the mayor’s crucial approval of the budget bill, the sports betting arena remains in a state of flux. Enthusiasts and stakeholders alike are keeping a close watch on developments, eager to see how the future unfolds for sports betting in Washington, DC.