Washington, DC Could Soon Have Open Sports Betting Market

Posted on: June 26, 2024, 03:27h. 

Last updated on: June 26, 2024, 03:27h.

Washington, DC could soon allow multiple operators to conduct mobile sports wagering in the District after City Council member Kenyan McDuffie’s (I-At Large) amendment to broaden the market was included in the council’s proposed budget for fiscal 2025, which was passed Tuesday.

McDuffie introduced the Sports Wagering Amendment Act of 2024 in March. Mayor Muriel Bowser (D) still has to approve the budget, but if she does, that could open the door to the city having more than one mobile sports betting option. Currently, FanDuel has a monopoly on mobile betting in the US capitol city.

Last month, representatives from BetMGM, Caesars Sportsbook, DraftKings, and Fanatics Betting & Gaming testified before the Washington, DC City Council’s Committee Business and Economic Development Committee to advocate for a more competitive mobile sports betting landscape in the city.

Usual Suspects Likely to Eye DC Sports Betting Entry

Should Washington, DC’s sports wagering market be liberalized, forcing FanDuel to shed its brief monopoly, the typical names in the industry would likely seek entry.

A decision on making the District’s sports betting market could boil down to simple economics. FanDuel paid a $5 million conversion fee to the Office of Lottery and Gaming (OLG) to take over the Intralot deal and is promising $2 million to $4 million in annual operating payments to the city. If several other gaming companies made similar financial commitments, mobile betting expansion could be a significant moneymaker for the city.

However, there are market share considerations for operators. While Washington, DC is an enticing market for sportsbook firms, there are no guarantees adequate threats to FanDuel will be mounted. In the first quarter in neighboring Virginia, FanDuell commanded market share of 40.14%, or more than DraftKings and BetMGM combined.

Resistance to Open DC Sports Betting Market

Obviously, FanDuel wouldn’t be thrilled about the idea of shedding its monopoly in DC, but there’s likely to be resistance to an open market from other corners — namely small businesses that have sports wagering kiosks.

Those FanDuel-operated machines are found in 63 locations across the city, including bars and lottery retailers, and have become important revenue streams for those establishments.

Retailers that have those kiosks fear that if more mobile wagering options are permitted in the District, bettors will be less inclined to use the kiosks. McDuffie believes that other gaming companies could provide comparable devices to businesses should the Washington market be liberalized.