Washington DC Could Allow More Competitive Sports Betting Market

A newly proposed bill, put forward by DC Councilman Kenyan McDuffie, aims to change the game by enabling a more open market for online sports betting.

Presently, the only platform available for online sports betting across the district is GambetDC. Managed by Intralot on behalf of the Office of Lottery and Gaming (OLG), the platform has been subject to criticism for its uncompetitive odds, limited markets, and challenging usability.

The unfortunate outcome of this limited choice is that consumers resort to crossing the border into Maryland and Virginia, where a wider selection of online sportsbooks is available.

GambetDC, despite its shortcomings, has contributed $4.3m in tax revenue to the district since its launch in May 2020. This figure, however, falls significantly short of the projected $84m revenue predicted in studies conducted prior to its launch.

The new bill seeks to create a new Class C licence, which would allow operators to offer online sports betting across the city. This proposed change would undoubtedly shake up the current monopoly held by GambetDC and introduce a wave of competition.

BetMGM and Caesars Sportsbook have managed to penetrate the district’s market, but their operations are confined to their respective sports stadiums and a two-block radius, limiting their ability to compete effectively.

For context, Delaware, which also operates under a single operator just like Washington DC, has generated $65.5m in tax revenue since its launch in June 2018. New Hampshire, another state with a monopolistic market, has seen an impressive $101.8m in tax revenue since its launch in December 2019.

Since the legalisation of online sports betting by the DC Council in 2019, McDuffie has been a vocal advocate for a more competitive market. His belief is that competition would ultimately benefit the consumers and contribute more significantly to the district’s revenues.

Intralot’s sports betting contract is due to expire this summer, and the lottery chief, Frank Suarez, revealed in a roundtable discussion in January that Intralot had proposed subcontracting the digital sports betting platform. McDuffie, however, questioned the timing of the announcement.

McDuffie’s new bill, filed on 20th March, aims to do away with the current monopoly by creating a new class of licences. Such a change would require operators currently partnered with sports franchises or venues to apply for a new licence in order to offer betting across the entire district.

The proposed Class C licence comes with a $2m application fee, valid for five years, with a renewal fee of $1m for another five years. The tax for digital sports betting would be set at 30%.