Wednesday was a significant milestone for Washington D.C. as Fan Duel, which previously enjoyed a monopoly in the city, is now joined by BetMGM and Caesars Sportsbook. The District had to wait for the ratification of the fiscal year 2025 budget to continue sports operations, causing unintended disruptions for operators.
D.C. Online Sports Betting Had a Tumultuous History
Previously, mobile sports betting was available citywide only via one operator, FanDuel. The new budget provisions, however, have paved the way for up to six additional companies to enter the market. Wednesday morning, Caesars became the second company, after FanDuel, to offer online bets citywide, expanding from its prior limitation to a two-block radius around Capital One Arena.
BetMGM also joined the race, commencing citywide operations the same day. DraftKings, a prominent player in the national sports betting scene and available in 25 states, also expressed enthusiasm about entering the D.C. market. On 25 June, the company hinted at its readiness to introduce its mobile sportsbook product to local sports fans, which should further diversify the District’s sports gaming landscape.
The original city-regulated betting platform, GambetDC by Intralot, was plagued by technical glitches and poor odds, taking in only $4.3 million over four years, whereas the city had projected $84 million. Intralot revealed in a late-April press release bombshell that it would close GambetDC and cede the D.C. mobile sports betting operation to FanDuel, which also operates a physical sportsbook within Audi Field.
An Open Market Brings Substantial Benefits
The revitalization of D.C.’s online sports gambling sector bodes well for the city’s economy. In its first month of operation for mobile sports betting, FanDuel made $1.9 million, raising hopes that a diversified market will significantly contribute to tax revenues. Under the new law, gaming companies in D.C. must pay a 20% tax on gross gaming revenue and substantial licensing fees.
This launch faced some initial hiccups. The budget talks caused FanDuel to suspend its online sports betting operations in D.C., communicating this news to the users through a message on the FanDuel app. Fortunately, decisive action by city officials resolved the issue, limiting the disruption to only one day.
The expansion of the D.C. online sports gambling market marks a historic turning point that will open the way for multiple gambling operators, bolster the city’s economy via taxation and employment opportunities, and provide bettors with the benefits of an open market. Industry experts will closely monitor this burgeoning market as some of the country’s leading sportsbooks fight to secure a market share.
