After a disastrous run with its own sports betting platform called GambetDC, FanDuel was chosen to replace it and the results thus far have been spectacular.
Change for the Better
On April 15th the DC Office of Lottery and Gaming (OLG) approved the launch of FanDuel to replace its previous sports betting platform, GambetDC, and so far, so very good. The data reveals that accepted wagers totaled $30 million, generating adjusted gross revenue (GGR) of $5 million in the first 30 days of operation. This was an astounding 673% increase in handle and an 887% rise in GGR over the same period last year.
Naturally, the District has benefitted mightily, collecting $1.9 million in taxes, which is a 690% increase in tax revenue compared to the same time in 2023. It took much longer than many believed it should have to pull the plug on the woeful GambetDC app which was created specifically for the DC sports betting market.
“The transition to FanDuel, the market leader in mobile sports wagering, ensures the long-term viability of mobile sports wagering in the District,” said Frank Suarez, the Executive Director of OLG. “In addition to a 40% share of GGR and a guarantee of $5 million in revenue in its first year, the FanDuel partnership brings the benefits of a respected brand, commitment to responsible gaming, an established userbase, and a superior sports wagering experience for District residents and visitors.”
FanDuel’s first 30 days were so impressive that the projections have DC being one of the highest revenue-producing markets on a per capita basis in the nation. Those who still have money in the old GambetDC site have until October 15th, 2024 to withdraw those funds.
What Took So Long?
It is not all that surprising that a bad idea that bucked all standard protocols was allowed to fester in the nation’s political hub, where accountability is usually replaced by finger-pointing. In this case, we are referring to the atrocious idea of building a sports betting platform from scratch and keeping a greater share of the profits versus using one or more of the many wildly successful sports betting platform partners available in a revenue-share agreement.
It harkens back to the adage, “Success has many fathers, but failure is an orphan”, as few want to accept responsibility for a spectacularly poor product from the outset which didn’t improve very much over the years.
Big Losses
To lend perspective on how poorly GambetDC performed, projections were that it would generate $20 million annually, but the bespoke sports betting platform reported a $4 million loss in its first year. There was no shortage of critics either.
“I don’t usually leave reviews but I’m leaving one just to let people know to avoid this app. The UI is clunky and glitchy, withdrawing your winnings is a hassle, and Intralot notoriously has the worst betting odds of any sportsbook in America. If you really need to gamble on sports, drive to Maryland or Virginia and place your bets. The app is bad enough that the round trip is worth it.” – Michael B
Brandt Iden, Fanatics Sportsbook’s vice president of government affairs, told the council earlier this year, “In our best estimate, we believe that the current mobile offering in the District has the market penetration of 1-2% of eligible adults… That means consumers are either traveling out of the District to place a wager, or worse yet, they’re placing wagers in an illegal offshore market.”
At least the problem has been solved but now the question is whether the District will allow more online sports betting platforms to compete in its market, as opposed to giving FanDuel exclusivity.
