![Expansion of Sports Betting Platforms in Washington, DC Hinges on Budget Approval](/img/breaking.png)
Expansion of Sports Betting Platforms in Washington, DC Hinges on Budget Approval
The sports betting landscape in Washington, DC is undergoing significant changes, with major players BetMGM and Caesars Sportsbook poised to expand their footprint starting Monday, 15 July. However, the momentum of this expansion is in the hands of Mayor Muriel Bowser, who has yet to sign the necessary budget bill.
This delay has already had a tangible impact. BetMGM, which had grand plans for a celebration at Nationals Park, was forced to cancel the event due to the hold-up in the budget's approval. The bill, which gained final approval from the DC Council on 25 June, was slated to take effect on 15 July. As of Monday night, FanDuel, in partnership with the DC Lottery, remains the sole sports betting platform available to enthusiasts in DC.
Back in January 2019, the DC Council approved a single-provider digital market without engaging in a competitive bid process. This led to an expansion of the contract with lottery vendor Intralot to include sports wagering through its GamBetDC platform. The platform, however, quickly faced criticism for its limited betting markets and technical issues, falling short of its revenue promises.
The DC Lottery's decision to shut down GamBetDC came as a new contract with FanDuel was inked. The impact was immediate and significant, with the handle shooting up 450% in the first month of FanDuel's online sports betting operation compared to the same period under GamBetDC. In May 2023, FanDuel reported $4.9 million in revenue, a stark contrast to GamBetDC's $711,282 in the same month.
The city reaps considerable benefits from these operations, taking 40% of the revenue from lottery-backed wagering partners. Intralot's contract, which expired on 15 July, has paved the way for new legislative changes and market opportunities.
The new law introduces Type C licenses, valid for five years and costing $2 million, with an annual renewal fee of $1 million. Licensees under this scheme will pay a 30% tax rate, and operators can now partner with franchises, not just venues. FanDuel's market access is derived from its partnership with Audi Field, which allows it to pay a 20% tax rate by aligning itself as the venue's partner.
BetMGM and Caesars Sportsbook hold Class A licenses, which enable them to offer digital platforms within a two-block exclusion zone around their respective venues, Nationals Park and Capital One Arena. Caesars made its move by partnering with Capital One Arena and opening its sportsbook in July 2020, while BetMGM launched its operations at Nationals Park in June 2021. FanDuel, not to be left behind, launched its retail presence at Audi Field in July 2022.
As the clock ticks, the entire sports betting ecosystem in Washington, DC is in a state of anticipation, pending the mayor’s approval of the budget bill. The approval holds the key to the broadening horizons of sports betting in the district, potentially ushering in a new era for bettors and operators alike. The city stands to gain not only from the enhanced revenue streams but also from an invigorated sports betting market that promises greater engagement and improved user experiences.