- The Office of Lottery and Gaming announced that FanDuel is coming to Washington, D.C.
- FanDuel will be replacing GamebetDC as the District’s lone sports betting operator
- FanDuel will launch in the spring
FanDuel is in, GamebetDC is out.
The Office of Lottery and Gaming (OLG) today announced it has reached a deal with FanDuel to be Washington, D.C.,’s lone sports betting operator, taking over for the troubled and much-maligned GamebetDC.
FanDuel will officially be the new sports betting subcontractor for Intralot, Inc., OLG’s lottery and sports betting system vendor. FanDuel is scheduled to launch sometime in the spring.
FanDuel Aims to Increase Revenue
Under the agreement, Washington, D.C. sports betting customers will gain access to FanDuel’s sports betting app, as well as its website and retail platforms.
“FanDuel’s industry-leading offering will ensure that the District maximizes tax revenue under its existing contracts this year while delivering a best-in-class experience for 18+ residents,” said Frank Suarez, Executive Director of OLG.
According to a FanDuel statement, the sports betting company guarantees the District it will provide a minimum of $5 million in tax revenue for the upcoming contract year, July 2024 through July 2025. Every year thereafter the operator guarantees at least $10 million per year for the following four contract years, for a guaranteed total of $45 million in revenue over its first five years of operation in the District.
However, FanDuel’s own projections estimate more than $119 million for the District in tax revenue for its first five years.
As part of the deal, GamebetDC’s existing in-store sports betting kiosks will be replaced by FanDuel’s on a phased basis. FanDuel will also assume $2 million to $4 million in annual sports betting operating expenses, including payment process, promotions, marketing, and retailer commissions and payouts.
GamebetDC Frustrated Many in D.C.
GamebetDC, the lone sports betting operator in the District, missed numerous financial goals and lost more than $4 million for D.C. in 2021. Powered by Intralot, D.C. officials approved the sole-source, no-bid, five-year contract for $215 million in 2019.
The app was criticized by customers and routinely missed financial goals since launching in May 2020.
Intralot predicted millions in revenue for Washington, D.C., but the returns have been much less so. Here are the following fiscal year revenue postings for GamebetDC:
- 2019: $0
- 2020: $352,000
- 2021: ($4 million)
- 2022: $2.7 million
Original Intralot projections estimated more than $20 million annually.
As part of the new deal with FanDuel, Intralot will pay the OLG a $5 million fee within the current fiscal year. The initial fee along guarantees a significant revenue increase from sports betting for the District in 2024.
FanDuel, one of the leading online sports betting platforms in the United States, has officially entered the Washington, D.C. market. This move comes as GamebetDC, the previous operator in the region, has decided to exit the market.
With FanDuel now operating in Washington, D.C., residents and visitors alike will have access to a wide range of sports betting options, including live betting, daily fantasy sports, and more. FanDuel is known for its user-friendly interface, competitive odds, and a wide variety of betting markets, making it a popular choice among sports bettors.
The decision by GamebetDC to exit the market may come as a surprise to some, but it is not uncommon for operators to come and go in the rapidly evolving world of online sports betting. As competition in the industry continues to grow, operators must constantly adapt and innovate to stay ahead.
For those who have been using GamebetDC, the transition to FanDuel should be relatively seamless. Existing accounts and balances should transfer over to the new platform, and users can expect to see similar betting options and features.
Overall, the entrance of FanDuel into the Washington, D.C. market is sure to shake things up and provide sports bettors with even more options and opportunities to wager on their favorite teams and events. As always, it is important for bettors to gamble responsibly and be aware of the risks associated with sports betting.
