FanDuel Makes Rapid Progress in Washington DC
In its inaugural month as the only mobile sports wagering provider in Washington D.C., FanDuel proved that the city made the right choice switching from GambetDC.
During the first 30 days of business in the nation's capital, FanDuel's mobile app and website produced a handle of $30 million and $5 million in gross gaming revenue (GGR), marking a staggering 673% and 887% increase year-over-year, respectively. The changeover also benefits the city's revenues.
The switch to FanDuel provides the District with a 40% share of GGR, resulting in an estimated $1.90 million in initial earnings for the city, an improvement of 690% compared to the same timeframe in the previous fiscal year, according to a statement from the DC Office of Lottery and Gaming (OLG).
Greek gaming company Intralot retains the sports wagering contract with DC, but due to GambetDC's subpar performance, the city council granted Intralot permission to delegate its responsibilities to FanDuel. FanDuel is a subsidiary of Dublin-based Flutter Entertainment (NYSE: FLUT). Betters with funds in a GambetDC account have until October 15 to withdraw them.
Greater Returns Expected for DC with FanDuel
FanDuel's rapid start in Washington, D.C., during a period absent of football season and with the Washington Capitals being eliminated early in the NHL playoffs, is even more impressive. The District has an NFL team, and football is the most popular sport for betting in the United States.
With football season approaching, the District could see a substantial increase in handled money, GGR, and sports betting tax revenue due to the city's inclusion of an NFL team. Assuming FanDuel's performance in the District's first 30 days continues, it suggests that football season could bring higher handle, GGR, and revenue for the city.
"Between September 2023 and February 2024, the District's per capita sports wagering earnings (tax and GambetDC revenue) were $2.71. Based on FanDuel's first 30 days of operations in the District, it's likely that the District's per capita sports wagering revenue may rise to over $19, making it one of the top revenue-generating markets in the nation on a per capita basis," concluded the OLG.
FanDuel promised the city $5 million in revenue for its first year of operation. Given the company's strong start, these forecasts may be underestimated.
Competition for FanDuel May Be on the Horizon in Washington, DC
FanDuel's remarkable success in Washington, D.C., might not go unnoticed by rival sportsbook operators vying for a more meritocratic mobile sports betting environment in the city.
Earlier this month, representatives from BetMGM, Caesars Sportsbook, DraftKings, and Fanatics Betting & Gaming testified before the Washington, D.C. City Council's Committee for Business and Economic Development Committee to lobby for a more competitive mobile sports betting environment in the city.
Ward 5 councillor Kenyan McDuffie (I-At Large) presented the Sports Wagering Amendment Act of 2024, which would do precisely that, but it's unclear how much traction this legislation has. The act, if approved, would invite more mobile sports betting operators to compete in the city.
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Source: www.casino.org