Limited Online Sports Betting in Washington, D.C. Until Budget Approval

Limited Online Sports Betting in Washington, D.C. Until Budget Approval
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  • There is currently no districtwide online sports betting in Washington, D.C.
  • All Type-A license holders are limited to a two-block radius to offer online sports betting
  • FanDuel, BetMGM, and Caesars Sportsbook are waiting for the D.C. budget to be signed into law to offer districtwide online sports betting

No operators are legally allowed to offer online sports betting throughout the confines of Washington, D.C., a change that its sports betting license holders, and customers, did not foresee.

BetMGM, Caesars Sportsbook, and FanDuel are all licensed to offer sports betting in the district, but now do so under Type-A licenses. The council approved FY 2025 D.C. budget allows Type-A license holders to offer sports betting districtwide, but the bill has yet to be signed into law by Mayor Muriel Bowser.

Bowser has until July 25 to potentially sign the bill into law, so online sports betting could be in a holding pattern in D.C. until that date.

FanDuel’s Districtwide Subcontract Expired

Since April, FanDuel has held a monopoly on districtwide online sports betting through a subcontract with Intralot. Intralot has held an exclusive contract with the Office of Lottery and Gaming (OLG) since 2019 to offer online sports betting in D.C.

However, Intralot’s contract with the OLG expired on Monday, July 15, also ending FanDuel’s subcontract with Intralot.

Due to its subcontract expiring with Intralot, FanDuel does not currently have a legal mechanism to offer online sports betting throughout the district. It can now offer retail sports betting through its Type-A sports betting license held in partnership with D.C. United at Audi Field and online sports betting within a two-block radius of its retail book.

“FanDuel remains committed to providing the District and its residents with a best-in-class sports betting offering. Upon final approval of the FY2025 DC Budget, FanDuel will resume its sports betting offering as a Class A operator in partnership with DC United at Audi Field and continue to offer our citywide mobile app to the District of Columbia,” A FanDuel spokesperson said in an official statement.

Waiting on Budget

FanDuel never considered it would have to cease online sports betting in the district, and BetMGM and Caesars Sportsbook both planned to launch districtwide on July 16. However, much to their surprise, Bowser has yet to sign the budget into law, which will allow for up to seven online sports betting operators to do business in the district and creates a new type of sports betting license.

D.C. council members consented to the expanded online sports betting market after unanimously approving the District’s FY 2025 budget on final reading in June. The new budget allows existing Type-A sports betting license holders to offer online sports betting throughout the District and outside operators to apply for newly created Type-C licenses.

The new class of license allows sports franchises in the district to partner with one sports betting operator to conduct online sports betting. The budget will tax Type-C license holders at a rate of 30% of gross gaming revenue and will cost $2 million to acquire for five years. A $1 million renewal fee will be required after the initial term runs out.

Sports franchises that play 90% of its home games in the district will be eligible for a Type-C license. This will leave the following franchises and stadiums eligible for one of the new types of sports betting licenses.

  • Audi Field
  • Capital One Arena
  • DC United
  • Nationals Park
  • Washington Capitals
  • Washington Nationals
  • Washington Wizards
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Gambling
Regulatory Writer and Editor

Gambling

Washington, D.C. residents and visitors may have to wait a little longer before they can fully enjoy online sports betting in the city. The reason for this delay is the lack of budget approval by the D.C. Council, which has put a hold on the implementation of online sports betting in the district.

In December 2018, the D.C. Council passed legislation to legalize sports betting in the city, both in-person and online. However, the implementation of online sports betting has been delayed due to concerns over the budget and the potential revenue it could generate for the city.

The D.C. Office of Lottery and Gaming, which oversees sports betting in the district, has been working on regulations and licensing requirements for online sports betting operators. However, until the budget is approved by the D.C. Council, these regulations cannot be finalized and online sports betting cannot be launched.

The delay in implementing online sports betting in Washington, D.C. has frustrated many residents and sports enthusiasts who were looking forward to placing bets on their favorite teams and events from the comfort of their own homes. Online sports betting offers convenience and accessibility that traditional in-person betting does not, making it a popular choice for many people.

Despite the delay, officials are hopeful that online sports betting will be up and running in Washington, D.C. soon. Once the budget is approved and regulations are finalized, residents and visitors will be able to enjoy the excitement of online sports betting in the city.

In the meantime, those interested in sports betting can still visit one of the city’s sportsbooks to place their bets in person. While online sports betting may be limited for now, there are still options available for those looking to get in on the action.

Overall, the delay in implementing online sports betting in Washington, D.C. is a temporary setback that is expected to be resolved soon. Once the budget is approved, residents and visitors can look forward to enjoying all the benefits of online sports betting in the nation’s capital.