The Office of Lottery and Gaming (OLG) announced Monday that FanDuel will replace GambetDC as the go-to online sportsbook in D.C.
FanDuel’s online sportsbook will be available to both residents and visitors inside the geographic boundaries of the District starting this spring, and FanDuel will also gradually replace GambetDC’s existing in-store gaming kiosks within the District.
“FanDuel’s industry-leading offering will ensure that the District maximizes tax revenue under its existing contracts this year while delivering a best-in-class experience for 18+ residents,” said OLG executive director Frank Suarez in a press release from DC Lottery.
Tenets of the deal
Intralot has been managing D.C. sports betting under the brand GambetDC since 2019, but has since identified FanDuel as its new subcontractor for OLG’s sports wagering platform. DC Lottery cited “FanDuel’s strong national presence and 50% market share in neighboring states” as key drivers for the partnership.
FanDuel is also a market leader in both Maryland and Virginia, so becoming available in D.C. will help residents of both states participate in sports betting in D.C. when they visit the District.
Intralot will assume OLG’s current operating costs associated with sports betting in D.C. which are between $2 million and $4 million annually, and will also pay an initial $5 million platform conversion fee to the District this fiscal year. FanDuel, as Intralot’s subcontractor, has also guaranteed the District an increase in revenue from sports betting since it will pay $10 million per year for the following four contract years for a $45 million total.
FanDuel projects revenue to the District to be $119 million in its first five years, nearly 30 times greater than what’s been generated by GambetDC.
DC’s Certified Business Enterprises who are part of the existing sports wagering operations and which are often minority-owned businesses are projected to see 1.5 to two times greater gaming revenue than they currently do.
The background
D.C. sports betting went live after The Sports Wagering Lottery Amendment Act of 2018 - Act 22-594 - authorized both lottery-run mobile and third-party retail betting. FanDuel opened a retail sportsbook in D.C. at Audi Field where the MLS’ DC United plays on July 8, 2022, becoming the first physical sportsbook to be located at an MLS venue in the U.S.
GambetDC maintained a monopoly on online sports betting in D.C. while Caesars and BetMGM also opened retail locations. Yet, GambetDC failed to deliver on its promise to generate more sports betting revenue than an open-market model would.
BetMGM partnered with the Washington Nationals to offer a retail sportsbook at Nationals Park, and was able to launch geofenced mobile betting within a two-block radius. The Caesars Sportsbook initially opened under the William Hill brand at Capital One Arena where the Capitals (NHL), Wizards (NBA), and Mystics (WNBA) all play.
Intralot’s current five-year, no-bid contract with DC Lottery was set to expire in July 2024, and there has been discussion in the city about changing direction since the DC Council held a virtual roundtable in July 2022 to discuss the failures of the GambetDC mobile app.
The Washington Post reported in January that the DC Lottery would be seeking a new platform for online sports betting in DC. Its article noted that GambetDC’s performance was doomed from the start since its rollout in May 2020 was marred by technical problems, poor odds, and other issues that damaged its reputation in the District. It was also noted that instead of the $84 million in tax revenue that D.C. had projected to see by now, GambetDC has brought the city just over $4.3 million in its lifetime.
"There’s an opportunity for us to get one of the private operator apps that players feel is much better than what we’re providing,” Suarez said at the time.
