BetMGM, Caesars Expand Online Sports Betting Presence In Washington D.C.
Regulation · 2024-07-17

BetMGM, Caesars Expand Online Sports Betting Presence In Washington D.C.

BetMGM and Caesars Sportsbook launched their sports betting apps across Washington D.C. on Wednesday afternoon, a major change from their previously restricted online presence.

Prior to Wednesday, the two operators could only accept online wagers in Washington D.C. in a two-block radius around their retail sportsbooks.

For BetMGM, that meant bettors could wager in a two-block radius around Nationals Park. Caesars Sportsbook was allowed to accept digital bets within two blocks of Capital One Arena.

Both operators will maintain digital exclusivity in the two-block radius around their sportsbooks and inside the respective venues while also being available across the District.

“After three years of bringing unparalleled, omnichannel experiences to sports fans and supporting the D.C. metropolitan community through our partnership with the Washington Nationals, fans can now bet on their favorite teams with BetMGM across the District with our award-winning mobile app,” BetMGM CEO Adam Greenblatt said in a press release.

Since April, only FanDuel was allowed to accept mobile bets across the District — outside of federally excluded betting areas that are prohibited for all operators. FanDuel took over as the District’s primary sports betting app in April after a few disastrous years of GambetDC holding the monopoly.

On Wednesday, customers across Washington D.C. gained access to two more well-known sports betting platforms. The trio of digital betting options became available just one day after D.C. bettors were temporarily blocked out of using any sports betting apps due to a delay in the FY 2025 budget being approved.

D.C. Councilmember Kenyan McDuffie spearheaded the recent push to open a competitive online sports betting marketplace in the District. McDuffie believed the best plan for tax revenue creation in D.C. was a system with multiple betting apps, similar to Maryland and Virginia.

“D.C. sports fans have always displayed an incredible passion for their teams,” Caesars Digital president Eric Hession said in a press release. “Expanding access to our mobile sports betting app across the district will only enhance their fan experience, and we look forward to deepening the connection we’ve established with them since our historic opening in 2021. We’d like to thank Mayor [Muriel] Bowser, Chairman [Phil] Mendelson, Councilmember McDuffie and the D.C. Council for their leadership on sports betting as well as the Office of Lottery and Gaming.”

For years, the lottery pushed back against McDuffie and other councilmembers, including former councilmember Elissa Silverman. The lottery said GambetDC was the best option for tax revenue generation before ultimately recommending a change from GambetDC to FanDuel. The switch to FanDuel quickly made it evident that GambetDC was a bad bet for the District.

McDuffie, with the support of Mendelson, successfully added his sports betting language to the District’s budget in late June, paving the way for Wednesday’s launches. Even though Mayor Muriel Bowser didn’t sign the FY 2025 budget, the sports betting changes still went into effect this week.

Online sports betting operators will be taxed at 20% under the new system. FanDuel was previously paying a 40% tax rate but moves to the 20% rate with the new competitive system.

DraftKings and Fanatics Sportsbook have both signaled an intention to join the Washington D.C. sports betting market, but they aren’t ready to launch yet. They’ll need to partner with a D.C. sports franchise and go through regulatory checks with the lottery before being allowed to go live in the District.

“We look forward to the potential opportunity to introduce D.C. sports fans to our mobile sportsbook product,” DraftKings’ official news account posted on X following the D.C. budget’s approval.

It’s also possible that other apps, such as BetRivers and ESPN BET, could attempt to enter the market at a future date.

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