Washington DC council votes to end sports betting monopoly

Garance Limouzy June 26, 2024

Share it :

Washington DC council votes to end sports betting monopoly

The Washington DC Council has approved its fiscal year 2025 budget, which includes provisions aimed at opening up the digital sports betting market to multiple operators, thereby breaking the monopoly currently held by FanDuel. The budget now awaits approval from Mayor Muriel Bowser.

Opening competition

Until now, FanDuel has been the sole operator of digital sports betting in the District, having taken over from GambetDC earlier this year.

Under the new framework, established operators like BetMGM and Caesars Sportsbook, which already have physical sportsbooks in partnership with local venues such as Nationals Park and Capital One Arena, are expected to expand their digital offerings.

One of the?architects behind these changes is Councilmember Kenyan McDuffie, who championed the Sports Wagering Amendment Act of 2024. McDuffie’s initiative, included in the budget, mandates that sports betting operators must partner with one of the seven professional DC sports teams. This provision is partly aimed at supporting local sports organisations, including women’s sports teams, which could benefit significantly from increased investment. The other requirements include companies being licensed and operational in at least five US jurisdictions and paying a $2 million application fee for a five-year license.

A debated decision

The decision to open up the market was not without its challenges and discussions.

Concerns were raised regarding the potential impact on small businesses that currently host sports betting kiosks and depend on these revenues. In response, McDuffie successfully added an amendment to protect their interests in the soon evolving market landscape.

Supporters argued that by attracting multiple operators, the city stands to benefit from increased tax revenues and job creation, while consumers can expect better odds, promotions, and overall service quality.

Reactions

FanDuel, which had been operating under a subcontract with Intralot, will face new competitive pressures under the revised framework. The company had previously expressed its intention to withdraw from its lottery deal should the market open up to other operators.

Industry reactions to the budget approval have been largely positive, with stakeholders applauding the Council’s decision to embrace competition and consumer choice. Representatives from major operators like DraftKings and Fanatics Sportsbook have expressed interest in entering the DC market.

DraftKings stated:?“We want to thank Chairman Mendelson, Chairman McDuffie, and the rest of the DC Council for taking a major step towards expanding mobile sports betting options in the District by approving changes to the District’s sports wagering framework as part of the Budget Support Act. We look forward to the potential opportunity to introduce DC sports fans to our mobile sportsbook product.”

Looking ahead, the implementation of the new sports betting rules is contingent upon final approval from Mayor Muriel Bowser. If approved, the budget is scheduled to take effect on July 15, marking the beginning of a new era for sports betting in the nation’s capital.

Upcoming SiGMA event: Click?here?to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.