FanDuel is currently the only mobile sports betting operator allowed to operate in the DC market, but that could be changing after an amendment to break the monopoly was included in the budget proposal that was passed earlier this week.
Budget Waits for Mayor’s Signature
DC City Council member Kenyan McDuffie’s Sports Wagering Amendment Act of 2024 was included in the budget proposal that recently passed and the only step left is getting Governor Muriel Bowser to sign on the dotted line. The measure would break the short monopoly that industry leader FanDuel had in the market after replacing the disastrous GambetDC in April as the District’s only mobile sportsbook.
So far so good. FanDuel has brought in far more revenue than GambetDC and customers appear to be far more satisfied with the experience. The deal was ostensibly going to be long-term for Flutter’s shining star but it seems as though there will be more rivals crashing the party.
Caesars already has a presence as a retail book inside Capital One Arena and BetMGM has its book nestled inside Nationals Park. Those two would be likely candidates to fill two of what would be seven available digital sports betting licenses.
Any sportsbook operator looking to do business in DC would have to partner with a pro team or sports venue which is already the case with Caesars and BetMGM, as well as FanDuel, which has a retail book at Audi Field. BetRivers and ESPN BET would likely come calling as they both operate in neighboring Maryland and Virginia. DraftKings would naturally want to steal market share from its chief rival, FanDuel, while Fanatics is expanding at a dizzying pace and would likely join the fray.
FanDuel Not Pleased
FanDuel president Christian Genetski sent a letter to Washington, D.C., Council Chairman Phil Mendelson in advance of the recent budget announcement and threatened to “invoke its termination right” to exit the District of Columbia if multiple operators were allowed.
The company also added it “remains committed to providing D.C. residents with a best-in-class sports betting offering under its current contract with the Office of Lottery and Gaming, while also maximizing revenue to the District under that agreement.” That would assume DC maintains the status quo and FanDuel continues to be the only mobile game in town.
Frank Suarez, executive director of the Office of Lottery and Gaming (OLG), the body that oversees FanDuel and its dozens of kiosks found in small businesses across the District, wrote in favor of keeping FanDuel as the lone operator.
“The FanDuel change has already brought back more than 15,000 active users to the District that were placing their bets in bordering states and has increased the average wager by almost six times the GambetDC average,” wrote Suarez.
More Changes
A tax hike from 10% to 20% on sports betting operators’ profits has also been discussed but it is unclear whether this is also in the budget proposal. That obviously didn’t go over well with FanDuel nor Caesars and BetMGM, the latter two operating retail sportsbooks.
Dan Shapiro, senior vice president and chief development officer of Caesars Digital, talked about how it would affect his company’s operations in the District. “In this case, we’re talking about increasing the license fee and the tax rate, which is [a] double whammy on us,” he said. “It’s all a math equation for us, and you’re changing the dynamic here.”
“We will support mobile sports betting, but it’s the retail aspect we have serious concerns about. The tax rate should be left at 10% so we can continue to invest in the District,” Shapiro added.
