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      News

      D.C.’s Sports Betting Market Expansion On Hold Amid Budget Approval Delay

      BetMGM and Caesars were primed to be the first to expand their online offerings citywide, but their plans were derailed by the mayor's delay.

      By Erik Gibbs

      Last updated: September 9, 2024

      2 min

      washington dc

      Sports bettors in Washington, D.C. were poised to see a major shakeup in the market with the planned launch of two new online sports betting operators at the beginning of this week. However, those plans have been put on hold as Mayor Muriel Bowser has yet to sign the district’s FY 2025 budget into law.

      The budget, approved by the D.C. City Council in late June, would usher in a more competitive sports betting landscape by allowing up to seven online operators to conduct business throughout the city. This move would dismantle the current monopoly held by FanDuel, which has been the sole district-wide online sports betting operator since this past April.

      BetMGM and Caesars Sportsbook were primed to be the first to expand their online offerings citywide. However, their plans were derailed by the mayor’s delay. Currently, both operators hold Class-A licenses, restricting their online reach to a two-block radius surrounding their physical sportsbooks. They have physical sportsbooks at Nationals Park and Capital One Arena, respectively.

      Mayor Bowser has until July 25 to either sign or reject the budget. The delay has left both operators and potential bettors in limbo. The mayor’s office has not commented on when the budget approval could arrive.

      What’s in store

      The new budget proposes a two-tiered licensing system for online sports betting. Existing Class-A license holders like BetMGM and Caesars would be able to offer online betting across the entire district, while newly created Type-C licenses would be available to outside operators partnering with D.C. sports franchises.

      We want to thank @ChmnMendelson, @CM_McDuffie, and the rest of the @councilofdc for taking a major step towards expanding mobile sports betting options in the District by approving changes to the District’s sports wagering framework as part of the Budget Support Act. We look…

      — DraftKings News (@DraftKingsNews) June 25, 2024

      The Type-C licenses aim to foster local partnerships and generate additional revenue for the city. They come with a hefty price tag — a $2 million initial fee and a $1 million renewal fee every five years. Additionally, Type-C operators will be taxed at a rate of 30% of gross gaming revenue.

      FanDuel, meanwhile, remains the sole district-wide online operator thanks to its Class-A license partnership with Audi Field. This arrangement came about after the DC Lottery pivoted away from Intralot, the company behind the underperforming GambetDC platform, in April.

      The GambetDC launch in 2020 fell short of expectations, prompting the DC Lottery to seek a new partner. FanDuel stepped in, taking over online sports betting operations under a subcontract with Intralot. FanDuel has said it would walk away if it’s unable to keep its monopoly, in which case Intralot could find a new operator to subcontract with or could possibly even relaunch GambetDC.

      Anticipation mounts

      The City Council’s approval of the expanded sports betting market reflects a desire to increase competition. It’s also looking to generate additional tax revenue and potentially foster partnerships between local sports franchises and online operators.

      While the delay may prove temporary, it could have lasting impacts on the sports betting market in Washington, D.C. At the very least, it’s going to stall the district’s ability to start seeing greater returns from the regulated sports betting market.

      Sports bettors in D.C. will have to wait and see if Mayor Bowser approves the budget, paving the way for a more competitive market. Until then, FanDuel remains the sole online operator, while BetMGM and Caesars — as well as others — wait to expand their online reach beyond their immediate vicinity.

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