A competitive sports betting market arrived today in Washington for the first time since D.C. sports betting launched in 2020.
FanDuel, the incumbent online sportsbook in D.C., reactivated in the District after going dark yesterday. Caesars Sportsbook and BetMGM also began taking online bets Wednesday morning throughout the city. Previously, both operators' service areas were limited to a two-block radius around their respective retail sportsbooks at Capital One Arena and Nationals Park.
On Tuesday, DraftKings Sportsbook's official X (formerly Twitter) account indicated it was also joining the D.C. market. However, D.C.'s Office of Lottery and Gaming did not mention DraftKings in its list of approved online sportsbooks this week, so it's unclear if or when the Boston-based operator will be made available.
DC! Join the best with #DKSportsbook and get ready for some great action! 👀⬇
— DraftKings Sportsbook (@DKSportsbook) July 16, 2024
Changing of the guard
Recent regulatory changes fostered this new era for D.C. sports betting. D.C. Councilmember Kenyan McDuffie lobbied for months to expand the District’s marketplace to include multiple online sportsbooks after GambetDC drastically underperformed as the only option, bringing in only $4.3 million in revenue for the city over four years.
After replacing GambetDC this spring, FanDuel broke records for the District in its first few months as the lone operator in partnership with the D.C. Office of Lottery and Gaming (OLG) and its contractor Intralot.
The prior setup essentially granted FanDuel a monopoly over the sports betting market, as Intralot held an exclusive contract with the OLG since 2019 to offer online sports betting in the District.
Intralot’s contract expired on July 15, which opened the door for Caesars and BetMGM to move in.
New look
The state's new budget opens the DC sports betting market to Type A and Type C operators.
FanDuel, BetMGM, and Caesars Sportsbooks will wield Type A licenses to offer online sports betting throughout the District. All three operators have existing partnerships with D.C.-based sports venues: FanDuel at D.C. United’s Audi Field, BetMGM at Nationals Park, and Caesars Sportsbook at Capital One Arena.
Formerly, FanDuel paid the city 40% of its gaming revenue but Type A licensees will pay 20% under the new structure, plus the cost of acquiring the license.
The newly created Type C licenses allow local sports franchises to partner with one of the District's sports betting operators to offer online sports betting. Type C licensees will be taxed at 30% of gross gaming revenue, pay $2 million to acquire the license for five years, and incur a $1 million renewal fee after the initial term expires.
