The world of sportsbooks in the nation's capital is set to look a little bit different beginning next week.
After reports earlier this month that GambetDC, the official sportsbook of D.C.’s Office of Lottery and Gaming (OLG) would be moving over to FanDuel as its subcontractor, D.C.’s only sports betting app finally made the announcement official and confirmed it would be closing shop on April 14. FanDuel’s app will subsequently become available on April 15.
Outlining the details in an FAQ released to the GambetDC’s website, the explainer follows up on the news last month that the OLG had approved FanDuel as the District’s sports wagering operator.
“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,” OLG executive director Frank Suarez said via the initial March press release.
Among the additional insights, GambetDC also confirmed that the final day to withdraw funds from accounts will be six months from the final wager date on Oct. 15, and that open bets for events after June 30 will be cancelled, with players provided refunds on bets. In-person retail locations will also transition to FanDuel branded locations via a “phased approach,” according to the FAQ, with plans to complete the transition before the end of the year.
A fresh look for D.C. betting
Intralot, the betting company that has been operating in D.C. under the GambetDC branding, will assume OLG’s operating costs associated with sports betting in the wake of the deal, believed to be between $2 million and $4 million annually.
Additionally, an initial $5 million platform conversion fee will be paid alongside a guaranteed increase in revenue for OLG given the $10 million per year for the following four contract years, totaling $45 million. Despite the substantial leap in costs, however, FanDuel is expected to jumpstart the D.C. sports betting scene in a major way, with a nearly 30-fold increase in revenue generation expected under FanDuel, with as much as $119 million projected in the first five years of operation.
D.C.’s sports betting scene, with Gambet previously providing the only online mobile option for local bettors, could also be set to undertake a shift in the wake of the deal. With GambetDC’s failure to generate substantive revenues and other betting giants such as BetMGM and Caesars Sportsbook continuing to make their presence felt across stadiums in D.C. with physical locations, change does appear to be on the horizon.
Notably, in late March, the D.C. legislature announced the tabling of the Sports Wagering Amendment Act, which would see Washington move to a more traditional mobile betting scene with multiple mobile retailers.
"The [Office of Lottery and Gaming] waited years to take these types of steps despite what consumers and residents across the District of Columbia have said has been a broken program,” D.C. council member Kenyan R. McDuffie, who is heading the legislation to alter the D.C. sportsbook scene, told the Washington Post in March. “I’m working toward a bill because the system and the program that they put in place simply doesn’t work.”
