D.C. online sports betting suspended without approval of new city budget

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FanDuel, the only online platform that offers citywide sports gambling in D.C., stopped accepting bets as of Tuesday because Mayor Muriel E. Bowser (D) has yet to sign the city’s budget for the 2025 fiscal year, which allows for the continuation of sports betting in the city.

In a statement to The Washington Post, FanDuel said it would resume sports betting operations in the city “upon final approval of the FY2025 DC Budget.”

Bowser spokeswoman Susana Castillo told The Post that the mayor received the budget legislation — the contents of which go well beyond sports gambling — on Thursday and that she has 10 business days to review it, meaning she must sign by July 25. If she doesn’t, the legislation automatically goes into effect.

FanDuel replaced Gambet DC, the city’s failed attempt to get citywide sports betting off the ground, in April, and it was scheduled to be joined by BetMGM, which was supposed to go live on a citywide basis Monday (it previously was available online only to gamblers who were within a two-block radius of Nationals Park, where the company offers a brick-and-mortar sportsbook). However, the BetMGM app Tuesday continued to say that it would allow bets only within proximity of Nationals Park. BetMGM canceled an announced event promoting its expanded D.C. offerings Monday.

Caesars Sportsbook reportedly also was supposed to go live on a citywide basis Monday, but as of Tuesday it, too, said gamblers needed to be in proximity to Capital One Arena, where it operates a brick-and-mortar sportsbook.

FanDuel said its brick-and-mortar sportsbook at Audi Field continues to accept wagers despite the pause in its online operations.

GambetDC, Washington’s first attempt at a mobile sports betting app that was available citywide, was a dismal failure, bringing in only $4.3 million over a four-year period, well short of the $84 million that was projected. To remedy this, Intralot — the Greek company that operates the D.C. Lottery and in 2019 was awarded a five-year, no-bid contract by the D.C. Council to develop GambetDC — subcontracted with FanDuel to replace GambetDC, and it brought in $1.9 million to the city in its first 30 days alone.

Last month, the D.C. Council gave final approval to the city’s $21 billion budget for fiscal 2025, which included a bill to expand the city’s sports-betting offerings, with up to seven licenses up for grabs. But in a letter sent to Council Chair Phil Mendelson (D) on June 5, before the Council approved the new budget, FanDuel President Christian Genetski said that if the city opened up sports gambling to other companies, FanDuel would terminate its contract with Intralot, under the terms of which it paid the city 40 percent of its gaming revenue, and instead move forward as an independent operator, where it would be required to pay the city only 20 percent of its gaming revenue, plus the costs of acquiring a gaming license.

In essence, FanDuel will be able to keep more revenue for itself under the terms of the city’s expanded sports-betting landscape. It only needs to wait for Bowser’s signature for it to become law.

Intralot, meanwhile, appears to be out of the D.C. sports-betting business. On June 28, the Office of Lottery and Gaming sent a one-year, $39 million contract extension with Intralot to the D.C. Council that was deemed approved Thursday. The contract extension, which went into effect Tuesday, requires Intralot to continue providing lottery services for the city but states that the company “shall not be required to operate or offer any retail, mobile and internet sports wagering in the District.” The extension also contains provisions to ensure players who made bets through GambetDC and the FanDuel-branded platform can collect winnings.

“Once again, the Office of Lottery and Gaming has created unnecessary confusion by prematurely releasing the contractor from their responsibilities. The Mayor is reviewing the budget and we expect this to be resolved soon,” D.C. Council member Kenyan R. McDuffie (I-At Large) said in a statement to The Post.

The Office of Lottery and Gaming did not provide a comment to The Post.

BetMGM was the first to announce its expanded presence in the city, while DraftKings — which is available in 25 states and is one of the most heavily used sports betting apps in the country — said June 25 that it was looking forward “to the potential opportunity to introduce D.C. sports fans to our mobile sportsbook product.”

The budget language says new holders of Class A sports-betting licenses could begin offering online sports gambling to people within D.C.’s borders as of Monday, but because Bowser has yet to sign the budget bill, expanded online sports betting is at least temporarily disallowed. This may explain why BetMGM and the other newcomers have yet to offer sports gambling to the entire city.

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