FanDuel has officially been operating in partnership with the OLG since 15 April. This came after the OLG completed its transition from Intralot-run GambetDC, its long-term partner for sports betting in DC.
For the period from the launch day to 14 May, FanDuel’s online sportsbook reported $5.0m in gross gaming revenue. This is some 887% higher than in the corresponding period in the previous year.
There is also a significant improvement in handle. For the same period, players in DC spent approximately $30m betting on sports, up 673% year-on-year.
The OLG also noted that, as a result of higher revenue, it was able to generate more funds for the district. FanDuel gives 40% of revenue to DC, equating to $1.9m for the 30-day opening period – up 690% on last year.
Bright outlook for sports betting in DC
Looking ahead, the OLG says the launch of FanDuel will also likely improve DC’s per capita sports wagering revenue.
Between September 2023 and February 2024, DC’s per capita sports wagering revenue – tax and GambetDC revenue – was $2.71. However, based on the early figures from FanDuel, this is now likely to exceed $19, which the OLG says will place DC among the highest revenue generating markets in the US on a per capita basis.
“The transition to FanDuel, the market leader in mobile sports wagering, ensures the long-term viability of mobile sports wagering in the district,” OLG executive director Frank Suarez, said.
“In addition to a 40% share of GGR and a guarantee of $5.0m in revenue in its first year, the FanDuel partnership brings the benefits of a respected brand, commitment to responsible gaming, an established user base and a superior sports wagering experience for District residents and visitors.
“FanDuel’s first 30 days have not only met, but exceeded, expectations.”
GambetDC falls by the wayside as FanDuel takes charge
The decision to drop GambetDC came as no great surprise, given the issues the brand has faced in DC. Intralot, which was contracted with DC, struggled to put out a competitive product. In fact, the platform lost $4.0m in 2021.
As such, the OLG approved a request from Intralot to subcontract online sports betting to FanDuel. This allowed FanDuel to go live in DC just a few days later,
Partnering with FanDuel also offers additional benefits to the district. These include the OLG no longer having to pay operating expenses, which were previously between $2.0m and $4.0m a year. Instead, FanDuel now handles payment processing, promotions, marketing and retailer commissions.
While the focus is on FanDuel’s online sportsbook, the new partnership also led to changes in the retail market. FanDuel is replacing betting kiosks at 63 lottery retailers across DC.
The GambetDC app remains accessible to players, but they can no longer use it to place bets on sports. Existing customers have until 15 October to withdraw any remaining funds from the platform.
Mixed market in April
As for the wider DC market, there were somewhat mixed results in April. Revenue fell 59.5% year-on-year to $526,689, with this also 62.4% lower than $1.4m in March of this year.
Spending-wise, players wagered a total of $14.5m during April. This is level with the same month last year but 5.7% behind $15.7m in March.
GambetDC led the way despite the brand ceasing operations in mid-April. Players spent $6.9m which, after taking off $6.5m in winnings, suggests revenue of $394,224.
For the full month, FanDuel reported $194,236 in revenue off a $550,751 handle.
Original article: https://igamingbusiness.com/sports-betting/dc-lauds-fanduel-revenue-tops-5m-in-opening-period/
