![Uncertainty Looms Over BetMGM and Caesars Sportsbook Expansion in Washington, DC](/img/breaking.png)
Two major sports betting platforms, BetMGM and Caesars Sportsbook, were on the cusp of expanding their footprints in Washington, DC, starting Monday, 15 July. However, the expansion is in a precarious position due to procedural delays. The city's sports betting scene, already undergoing seismic shifts, faces further uncertainty as Mayor Muriel Bowser has yet to sign the critical budget bill essential for the rollout.
Delayed Budget, Delayed Celebration
The delayed approval of the budget bill forced BetMGM to cancel its much-anticipated celebration at Nationals Park. The event, which was supposed to herald a new era in sports betting in DC, now epitomizes the prevailing uncertainty. Currently, FanDuel, in an existing partnership with the DC Lottery, remains the sole sports betting platform available for enthusiasts as of Monday night.
Finishing the Fiscal Year 2025 Budget
The DC Council had given final approval to the Fiscal Year 2025 budget on 25 June, with the budget slated to go into effect on 15 July. This timing was expected to be pertinent for the planned expansions by BetMGM and Caesars Sportsbook. However, the delays in ratification are casting a long shadow over these plans.
The history of sports betting in Washington, DC, has been littered with controversies and strategic shifts. In January 2019, the DC Council approved a single-provider digital market without engaging in a competitive bid process, which expanded the contract of lottery vendor Intralot to include sports wagering. Intralot’s GamBetDC platform quickly faced criticism for its limited betting markets and technical glitches, leading to revenue shortfalls.
The Rise and Fall of GamBetDC
Having fallen short of its ambitious revenue projections, the city decided to shut down GamBetDC after a new contract with FanDuel. Since FanDuel took the reins, the handle shot up by an impressive 450% in the initial month of its online sports betting operation compared to the same period under GamBetDC. FanDuel also showcased substantial financial gains, generating $4.9 million in revenue in May 2023, dwarfing GamBetDC's $711,282 for the same month.
The fiscal implications for the city are evident; the municipal administration takes 40% of the revenue from lottery-backed wagering partners, making a compelling case for efficient, reliable platforms.
Moreover, Intralot's contract expired on 15 July, coinciding with the city’s introduction of Type C licenses. These licenses, valid for five years and costing $2 million with an annual renewal fee of $1 million, impose a 30% tax rate on revenue. The new regulatory framework also permits operators to partner with franchises, adding a layer of flexibility previously lacking.
The Competitive Landscape
FanDuel’s market access stems from its partnership with Audi Field, under which it pays a 20% tax rate. Meanwhile, BetMGM and Caesars Sportsbook hold Class A licenses, allowing digital platform offerings within a two-block exclusion zone around their respective venues, Nationals Park and Capital One Arena. Caesars opened its sportsbook at Capital One Arena in July 2020, followed by BetMGM’s launch at Nationals Park in June 2021, and FanDuel’s retail presence initiation at Audi Field in July 2022.
The current landscape of sports betting in Washington, DC, is fraught with anticipation as stakeholders await the mayor’s approval of the budget bill. The sports betting market dynamics in the nation's capital have undergone significant transformations, from monopolistic digital markets to partnerships with major franchises. The city's decision-makers and operators alike are keenly aware that the future hinges on the prompt ratification of the budget bill, setting the stage for an unprecedented chapter in DC's sports betting saga.