Washington DC Awaits Mayoral Decision on BetMGM and Caesars Sportsbook Launch

Caesars Sportsbook, were prepared to launch their services across Washington, DC. However, the launch is pending the signature of Mayor Muriel Bowser on the budget bill required for these operations to go live. Mayor Bowser has a deadline of July 25 to either sign or veto the budget. If no action is taken by this date, the budget will automatically take effect.

Current State of Betting Platforms

Both BetMGM and Caesars have expressed uncertainty about when the mayor’s approval will be secured. BetMGM even canceled a planned celebration at Nationals Park due to the delay. Currently, FanDuel remains the only available sports betting platform in DC, in partnership with the DC Lottery. However, FanDuel’s platform was reported unavailable on May 16, leaving DC sports bettors to place bets solely in person. FanDuel has stated it will resume online operations once the budget is approved.

The final approval of the FY 2025 budget by the DC Council on June 25 includes an amendment set to alter the sports betting landscape in Washington, DC. In January 2019, the DC Council established a single-provider digital market without a competitive bidding process, expanding the contract of lottery vendor Intralot to include sports wagering. Intralot’s GamBetDC platform faced significant criticism for its limited betting options and subpar functionality compared to neighboring markets.

In April, the DC Lottery announced the termination of GamBetDC following a new agreement with FanDuel. The introduction of FanDuel led to a substantial increase in betting activity, with a 450% rise in handle compared to GamBetDC year-over-year in its first month. In May 2023, FanDuel generated $4.9 million in revenue, a stark contrast to GamBetDC’s $711,282. The city benefits from a 40% share of revenue from any lottery-backed wagering partner.

New Licensing Framework

Under the amended law, there is no cap on the number of operators. FanDuel, though still operational throughout DC, will no longer be an Intralot subcontractor, as Intralot’s contract expired on July 15. Instead, FanDuel will maintain market access through a partnership with Audi Field, paying a standard 20% tax rate as other operators.

BetMGM and Caesars Sportsbook, holding Class A licenses, have been offering their services within a two-block exclusion zone around Nationals Park and Capital One Arena, respectively. The original law mandated operators to partner with one of four professional sports venues to provide betting services. Caesars launched the first retail sportsbook in the city in July 2020, followed by BetMGM in June 2021, and FanDuel in July 2022.

The new legislation introduces Type C licenses, allowing operators to partner with franchises instead of venues. DraftKings and Fanatics have previously shown interest in entering the DC market. These Type C licenses are priced at $2 million with an annual renewal fee of $1 million and are valid for five years. Licensees under this category will be subjected to a 30% tax rate.

The pending approval of the budget by Mayor Bowser is a pivotal moment for the Washington, DC sports betting landscape. The anticipated entry of BetMGM and Caesars Sportsbook, coupled with the operational adjustments of FanDuel and the introduction of new licensing options, signifies a significant transformation in the market. These changes are poised to offer enhanced betting experiences and increased revenue, reshaping the future of sports wagering in the nation’s capital.

Source:

”Online wagering in US capitol on hold until mayor signs budget; platforms were ready to go Monday”, igamingbusiness.com, July 16, 2024.