Is the DC Legal Sports Betting Scene About to Become More Competitive?

Since its launch in 2020, the Washington D.C. legal sports betting industry has been underwhelming. However, there are ongoing efforts to enhance availability and profitability, and the addition of another top sports betting site will likely contribute to these improvements.

The process of replacing the District’s only citywide sports betting app has been ongoing, with FanDuel recently expanding its presence in the city by opening a new retail facility. FanDuel is positioned to become the sole citywide online provider, taking over from the underperforming GambetDC app. This change is expected to greatly improve the market.

The most significant development came from council member Kenyan R. McDuffie, who introduced the Sports Wagering Amendment Act of 2024, a proposal to revamp and modernize the DC sports betting industry.

A little history of the issues in the DC market

In 2019, Intralot, a Greek company, entered into a five-year contract with the D.C. Council to create GambetDC, the sole citywide sports betting platform for individuals looking to place bets on sports events from their homes.

Other providers in the DC sports betting market were restricted to operating within sports venues and a two-block radius surrounding their physical locations. Currently, Caesars and BetMGM are only allowed to operate within the sports venues they have partnerships with and within the designated two-block radius.

From the beginning, Gambet DC faced challenges with its interface and received numerous complaints about uncompetitive odds and usability issues that often made betting a frustrating experience.

Intralot’s platform, launched in 2020, only generated $4.3 million in revenue, falling significantly short of the anticipated $84 million from the mobile sports betting industry. The overall sports betting handle in the District also saw a decrease from $216.2 million in 2022 to $169.7 million in 2023.

Now for some of the proposed solutions

FanDuel is set to replace the lackluster GambetDC app, and has recently opened Sports & Social DC, a retail sports bar that further establishes its presence in Washington DC beyond its sportsbook at Audi Field, the city’s professional soccer stadium.

FanDuel is positioned to be the leading sports betting app in DC, holding a strong grip on mobile wagering throughout the city and operating two retail locations.

Last week, lawmaker Kenyan R. McDuffie proposed a plan to revamp the underperforming sports betting industry in the District. His proposal includes restructuring the licensing system and implementing a citywide online sports betting platform.

McDuffie stated that while changing a broken system is a complex task, it is still simpler than establishing sports wagering from the ground up. He expressed his support for the concept of increasing competition in the city’s sports wagering program, believing that others will also back this idea. McDuffie emphasized that this is a demand from consumers that should be met.

Sports Wagering Amendment Act of 2024

The goal of McDuffie’s Sports Wagering Amendment Act of 2024 is to offer residents improved choices, increased opportunities for at-home sports betting, and the expansion of a previously restricted market.

The goal is to legalize several DC sports betting apps that will be accessible across the District, with the potential for implementation in the near future.

An overlooked benefit of a sports betting overhaul would be maintaining the interest of sports teams in the DC area. With several professional franchises calling Washington home, including the Nationals, Wizards, Capitals, Spirit, and D.C. United, McDuffie’s proposal would allow them the opportunity to obtain their own mobile sports betting licenses from a provider of their choice.

This would encourage sports teams to not only remain in DC but also to contribute to the local community.

So…

The Washington DC sports betting industry is on the brink of positive change.

Naturally, the council will need to discuss and ultimately endorse any actions, but Gambet DC’s shortcomings could potentially be the driving force that advocates for change have been seeking.