The launch is two days later than both operators planned. But they had to await the FY 2025 budget being in force.
The budget includes provisions that open the market from a monopoly to a competitive landscape. DC Mayor Muriel Bowser did not sign or veto the budget. Her deadline to do so was 25 July. Instead, she sent it back to the DC Council. The move allows BetMGM and Caesars to begin offering their platforms throughout the city.
Bowser’s press secretary told Sports Handle that Bowser’s non-action “will still permit” the expansion. By sending it back, Bowser was demonstrating that she had “objections to several elements of the budget.” Given the contentious history of sports betting in DC, the expansion could be one of those objections.
Neverthelesss, BetMGM and Caesars Sportsbook announced Wednesday that they had launched their mobile platforms citywide. Both companies already had market access through deals with Nationals Park and Capital One Arena, respectively. Now, instead of being geofenced to a within a two-block radius of their retail sportsbooks, the platforms are live throughout the city, except in federally excluded areas.
BetMGM CEO Adam Greenblatt said via press release that the company looks forward to launching district-wide following “three years of bringing unparalleled, omnichannel experiences to sports fans” under the previous framework.
Eric Hession, president of Caesars Digital, said in a press release that by going live in DC, the company’s presence “will only enhance” the fan experience. He also thanked Bowser and the DC Council “for their leadership on sports betting.”
Originally, both companies had planned to launch Monday (15 July). BetMGM was forced to cancel a launch event it had scheduled at Nationals Park that day.
FanDuel also back, no longer sole operator
FanDuel, which had been operating citywide since April as a sub-contractor for Intralot, also came back online Wednesday. Intralot is the DC Lottery’s provider. Intralot’s previous sports betting contract expired Monday, forcing FanDuel to briefly halt operations due to the budget delay.
Under the previous terms, FanDuel paid a 40% tax rate as a monopoly, but now it will join the other platforms tethered to designated sports facilities at a 20% tax rate.
FanDuel came to the rescue of DC sports bettors in April when it took over for Intralot’s GamBetDC. That platform was widely criticised for both its financial performance and its poor usability.
In the first month that FanDuel was live in DC, handle was up 450% against GamBetDC year over year. And FanDuel made $4.9m in revenue compared to $711,282 by GambetDC in May 2023. Revenue is calculated by taking player winnings off total bets placed during the month.
Looking ahead, the new framework does not cap the number of operators. Other big players such as DraftKings and Fanatics Sportsbook have expressed interest in establishing presences in the market. The new framework allows for a new “Type C” license for digital wagering.
Original article: https://igamingbusiness.com/sports-betting/betmgm-caesars-live-in-dc-after-budget-delay/
