FanDuel has been tapped to take over Washington D.C.’s mobile sports betting platform, GambetDC, but the District may not open to other sports betting operators for another two years, giving FanDuel an enormous advantage moving forward in the DC market.
Fixing a Mistake
Washington D.C.’s mobile sports betting launch has been spectacularly disappointing after a no-bid contract was given to Greek gaming concern, Intralot, nearly five years ago that was tasked with creating the District’s own sports betting platform, GambetDC.
It was a unique approach considering the national mobile sportsbooks had been launched in states and jurisdictions all over the nation to rousing success. However, the Washington DC bureaucrats decided they knew better and tapped a foreign company to reinvent the wheel over those that had not already invented it but perfected it.
Lackluster Product
Once GambetDC was launched it became quickly apparent that the product was stunningly inadequate from technical glitches to odds that weren’t nearly as competitive as those being found in neighboring Virginia or Maryland, not to mention at the local retail sportsbooks where Audi Field (FanDuel), Capital One Arena (Caesars) and Nationals Park (BetMGM), can be found.
Frank Suarez, Executive Director of the D.C. Office of Lottery & Gaming, understood a change was overdue and said, “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. It launched with a sort of clunky, not user-friendly app.
“And I think even with the changes we made to the interface, there’s still player perception the odds aren’t as good, and the app isn’t going to work as well… we just realized those perceptions would be difficult to change and it would be best to go ahead and just replace the platform.”
Competitive Advantage
As Intralot’s five-year contract began winding down, ending in July 2024, it became apparent a change needed to be made. The company and Washington DC’s Office of Lottery and Gaming (OLG) decided that shifting the gaming platform from GambetDC to a national platform provider was the best solution.
Thus, the choice was made that FanDuel would take over the mobile sports betting market in DC, replacing GambetDC as of April 15, 2024. GambetDC customers will not automatically be migrated to FanDuel, and they will need to withdraw their funds by October 15th of this year.
But this is simply a temporary solution to what had been an ongoing problem. Washington DC’s Office of Lottery and Gaming (OLG) is reportedly negotiating with Intralot on a two-year extension with FanDuel as its subcontractor on the sports betting side of things. Naturally, this would give FanDuel an extraordinary competitive advantage even if the market eventually opens up to other operators, as it would allow the digital gaming giant two full years to cultivate DC customers with no competition.
Naturally, industry rivals to FanDuel are not thrilled with the two-year extension in which FanDuel is the sole operator. But at the very least, Councilmember Kenyan McDuffie has sponsored a bill, 25-0753, which will allow more than one mobile sports betting license in the District, and it will be discussed at the Business and Economic Development meeting on May 6th before proceeding through normal legislative channels.
