![Betting Titans Eye Washington, DC Expansion Amid Budget Bill Delay](/img/breaking.png)
Betting Titans Eye Washington, DC Expansion Amid Budget Bill Delay
The sports betting landscape in Washington, DC is on the brink of a significant transformation. Two major platforms, BetMGM and Caesars Sportsbook, were poised to expand their offerings across the nation’s capital starting Monday, 15 July. Despite the promising horizon, a critical obstacle remains: Mayor Muriel Bowser has yet to sign the necessary budget bill, delaying the anticipated expansion.
The postponement has had tangible repercussions. BetMGM was forced to cancel its planned celebration at Nationals Park. Meanwhile, FanDuel, in collaboration with the DC Lottery, has retained its status as the sole sports betting platform available to enthusiasts in Washington, DC as of Monday night. It’s a landscape marked by anticipation and uncertainty, hinging on a delayed piece of legislation.
The DC Council already gave its final approval to the FY 2025 budget on 25 June, with a scheduled effect date of 15 July. It’s evident that the postponed endorsement from the mayor has a sprawling impact on the sports betting sphere in the district.
Years before this delayed expansion, in January 2019, the DC Council had taken a significant step by approving a single-provider digital market without initiating a competitive bid process. The contract of lottery vendor Intralot was thus extended to encompass sports wagering. However, Intralot's GamBetDC platform faced sharp criticism for its limited betting markets and technical glitches. Moreover, it failed to meet revenue expectations, leading to its eventual shutdown in favor of a new contract with FanDuel.
The shift to FanDuel demonstrated immediate results, with the handle increasing by 450% in the initial month of its online sports betting operation compared to GamBetDC’s performance in the same period. In May 2023, FanDuel generated a substantial $4.9 million in revenue, a stark contrast to GamBetDC's $711,282 for the same month. The city reaps the benefits of this success by taking 40% of the revenue from lottery-backed wagering partners.
With Intralot's contract having expired on 15 July, the introduction of the new law brings about Type C licenses, setting the stage for this evolving market. These licenses, valid for five years, come at a considerable cost — $2 million, with an annual renewal fee of $1 million. Additionally, licensees will face a 30% tax rate.
One of the noteworthy changes is that operators now have the option to partner with franchises, not just venues. This shift is exemplified by FanDuel's market access through its collaboration with Audi Field, allowing it to pay a reduced tax rate of 20% due to its partnership. Such strategic alignments are reshaping the operational landscape for sports betting entities.
Meanwhile, BetMGM and Caesars Sportsbook, both holding Class A licenses, are set to solidify their presence. These licenses permit them to offer digital platforms within a two-block exclusion zone around their respective hubs — Nationals Park for BetMGM and Capital One Arena for Caesars. Caesars established its sportsbook within the premises of Capital One Arena in July 2020, while BetMGM commenced its operations at Nationals Park in June 2021. FanDuel also made its mark with the launch of its retail presence at Audi Field in July 2022.
The fate of the sports betting arena in Washington, DC now hangs in the balance, pending Mayor Bowser's approval of the budget bill. As stakeholders and enthusiasts await further developments, the landscape remains a dynamic and evolving narrative, underscored by strategic partnerships and legislative expectations.