Competitive Sports Betting Market in Washington, DC Sought by Caesars, DraftKings, and More
In less than a month, FanDuel became the only mobile sportsbook operator in Washington D.C., but other companies are pressing for a piece of the online sports betting pie. This week, representatives from BetMGM, Caesars Sportsbook, DraftKings, and Fanatics Betting & Gaming provided testimony at the Washington, D.C. City Council's Committee on Business and Economic Development. Kenyan McDuffie (I-At Large) is a council member on this committee and proposed the Sports Wagering Amendment Act of 2024, which would allow more gaming operators to provide mobile betting in the District.
Even though FanDuel's takeover from the controversial GamBetDC app is seen as a good move by the Washington D.C. City Council, some operators worry the city could miss out on crucial revenue due to an online sports betting monopoly.
Brandt Iden of Fanatics stated at the city council meeting that nearly two-thirds of the operator's Maryland customers and 10% of their Virginia customers tried to access the app in D.C. He added that customers who once used GamBetDC are now choosing to travel to surrounding states or participate in the illegal offshore market because there aren't any responsible gaming protocols.
Obstacles to Expanding the DC Sports Betting Market
Although FanDuel is currently the only mobile sports betting option in D.C., it obtained this status because Intralot, the Greek company behind GamBetDC, handed over its responsibilities to them.
Intralot has a contract with the city that runs until mid-2025, but it's unclear what would happen to allow more competitors in the D.C. sports betting market. Additionally, bar and restaurant owners and small retailers in the District who own sports wagering kiosks are concerned about losing their revenue stream if mobile betting becomes more prevalent.
Barbara Lang, former CEO and president of the Washington, D.C. Chamber of Commerce, emphasized to the council that sports betting kiosks help attract customers for some businesses. "A competitive, mobile-dominated system would completely squeeze out retailers aiming to generate revenue from in-person gaming," she said.
Why Participating Gaming Companies Want to Expand into D.C.
BetMGM, Caesars, and other companies, which already offer mobile sports betting in Maryland and Virginia, are eyeing FanDuel's position in D.C. Since D.C. has partnerships with FanDuel, BetMGM, and Caesars Sportbooks at local stadiums, they all want that coveted mobile betting access.
FanDuel's solid start in D.C. had them attracting $14 million in wagers through the app in the first two weeks. However, breaking ties with Intralot could be difficult as the Greek company holds the upper hand, which frustrates McDuffie.
"I think the District of Columbia, the nation's capital, should be in a better situation today, on May 6, than we are," he noted during the meeting. "We shouldn't have to make a decision under pressure about generating revenue with a company that has failed miserably at managing our sports wagering operation. I think there's a case to be made that they shouldn't be a part of it."
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Source: www.casino.org
