Sports betting enthusiasts in Washington, DC, are on the edge of their seats as BetMGM and Caesars Sportsbook prepare to expand their footprint across the city. Both platforms were set for a grand launch on Monday, 15 July, yet administrative hurdles have thrown a wrench in their plans.
Budget Bill Delays and Its Ramifications
Mayor Muriel Bowser has yet to sign off on the necessary budget bill, delaying the anticipated launch. This uncertainty has led BetMGM to cancel its much-awaited celebration at Nationals Park, much to the disappointment of fans and stakeholders alike. The budget bill's final approval came from the DC Council on 25 June, with the intent for it to come into effect about three weeks later. However, with the mayor's signature still pending, the rollout hangs in limbo.
FanDuel Stays Steady
In the meantime, FanDuel, in collaboration with the DC Lottery, remains the lone operator in the market as of Monday night. This partnership has proven fruitful; after the lottery's previous platform, GamBetDC, fell short of revenue expectations. Upon its initial month of operation, FanDuel saw a staggering 450% increase in betting handle compared to the equivalent period under GamBetDC. May 2023 figures showcase FanDuel’s dominance with $4.9 million in revenue, a stark contrast to GamBetDC’s $711,282 for the same month.
Shifts in the Betting Landscape
The landscape for sports wagering in Washington, DC, underwent a significant shift back in January 2019 when the DC Council approved a single-provider digital market without a competitive bidding process. Intralot, the lottery vendor at the time, expanded its contract to include sports wagering, but its GamBetDC platform faced heavy criticism for offering limited betting markets and experiencing numerous technical issues. The subsequent decision to shut down GamBetDC in favor of FanDuel marked a pivotal change.
Intralot's contract, which expired on 15 July, paved the way for new legislation introducing Type C licenses. These licenses are set to cost $2 million with a five-year validity, and an annual renewal fee of $1 million. Additionally, license holders are subject to a 30% tax rate. Crucially, these new provisions allow operators to partner with franchises rather than being restricted solely to venues.
The Role of Partnerships and Licenses
FanDuel’s influence in the market is significantly bolstered by its partnership with Audi Field, allowing it to operate at a more favorable 20% tax rate. By contrast, BetMGM and Caesars Sportsbook operate under Class A licenses, which permit these operators to offer digital platforms within a two-block exclusion zone around Nationals Park and Capital One Arena respectively. BetMGM launched its operations at Nationals Park in June 2021, while Caesars established its sportsbook at Capital One Arena in July 2020. FanDuel followed suit, launching its retail presence at Audi Field in July 2022.
The City’s Stake
Washington, DC, benefits significantly from these sports betting operations. The city takes a 40% cut from revenue generated by lottery-backed wagering partners. The heights of enthusiasm from these ventures not only beckon fans but also fill city coffers, underscoring the mutual benefit in these public-private partnerships.
As the sports betting landscape continues to evolve, the pending approval of the budget bill remains a critical factor. Operators and fans alike are eagerly awaiting Mayor Bowser's decision, which will likely shape the future of sports wagering in the nation’s capital. Nonetheless, the existing partnerships and legislative changes point towards a burgeoning industry poised to capture the imagination and investment of sports enthusiasts in Washington, DC.