Both sportsbooks indicated on Monday that they are waiting for the mayor’s signature, but are unsure when it will come. BetMGM cancelled a planned celebration at Nationals Park, a company representative said. As of Monday night, FanDuel, partnered with the DC Lottery, remained the only platform available to those betting in DC.
On 25 June the DC Council gave final approval to the FY 2025 budget. It was set to go into effect on 15 July. Tucked in the budget is an amendment that changes the Washington, DC wagering landscape. In January 2019, the DC Council approved a single-provider digital market and did not have a competitive bid process to find a digital operator. At that time, the Council and Office of Lottery and Gaming agreed to expand lottery vendor Intralot’s contract to include wagering.
Intralot’s GamBetDC offering opened to criticism and never generated the amount of money politicians had promised. The platform offered limited betting markets. In addition, consumers complained about functionality and odds weren’t as competitive as in neighbouring markets.
The lottery in April announced that Intralot would shut down GamBetDC after signing a new contract with FanDuel. In the first month that FanDuel offered online sports betting 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. The city gets 40% of revenue from any lottery-backed wagering partner.
New law doesn’t cap number of operators
FanDuel will remain available throughout DC, but ultimately won’t be an Intralot sub-contractor. Intralot’s contract with the lottery to offer sports betting expired on 15 July. As a subcontractor, FanDuel paid 40% of its revenue to the city for the privilege of having a Washington, DC wagering monopoly.
But the company has market access in DC through a partnership with Audi Field. By offering betting in the new landscape as Audi Field’s partner, FanDuel will pay the same 20% tax rate as other operators.
BetMGM (Nationals Park) and Caesars Sportsbook (Capital One Arena) hold Class A licences. Both have been offering their digital platforms in a two-block exclusion zone around the venues. Under the original law, operators were required to partner with one of four professional sports venues in order to offer Washington, DC wagering. Caesars was the first operator to open a retail sportsbook in the city when it partnered with Capital One Arena and opened its book in July 2020. BetMGM followed at National Field in June 2021. And FanDuel opened a retail space at Audi Field in July 2022.
The amended law creates a new Type C licence under which operators can partner with a franchise versus a venue. DraftKings and Fanatics both previously expressed interest in having a presence in DC.
The Type C licences will cost $2m and have an annual $1m renewal fee. The licences will be good for five years, and licensees will pay a 30% tax rate.
Original article: https://igamingbusiness.com/sports-betting/washington-dc-wagering-betmgm-caesars-delayed/
