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D.C. to Expand Online Sports Betting with BetMGM and Caesars

FanDuel Sportsbook will no longer have a monopoly on sports betting in the nation’s capital.

Feb 9, 2024; Las Vegas, NV, USA; The BetMGM Sportsbook at the Mandalay Bay resort and casino. Mandatory Credit: Kirby Lee-USA TODAY Sports
USATSI

Sports bettors in Washington, D.C. will soon have a few more options for placing sports bets from their computers or mobile devices.

Until recently, FanDuel Sportsbook was the only online sportsbook licensed to operate in the District of Columbia. That changed in June 2024 when the D.C. Council approved its budget for the 2025 fiscal year

To create additional tax revenue for the city, the Council’s 2025 budget expanded the number of online sports betting licenses available in D.C., paving the way for other online sportsbooks to enter the market. BetMGM and Caesars Sportsbook were the first brands to take advantage of the new laws in the nation’s capital. 

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Must be 21 or older and physically present in AZ, CO, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, NJ, NY, NC, OH, PA, TN, VA, WV, WY or Washington, DC. New users only. Must register using eligible promo code. First bet to settle must lose to qualify. Max. Bonus Bet: $1,000. Bonus Bet expires 14 days after receipt. Void where prohibited. See Caesars.com/promos for full terms. Know When To Stop Before You Start®. Gambling Problem? CO, IL, KY, MD, MI, NJ, OH, TN, VA, WV, WY, KS (Affiliated with Kansas Crossing Casino), LA (Licensed through Horseshoe Bossier City and Harrah’s New Orleans), ME (Licensed through the Mi’kmaq Nation, Penobscot Nation, and Houlton Band of Maliseet Indians, federally recognized tribes located in the State of Maine), NC (Licensed through Tribal Casino Gaming Enterprise), PA (Affiliated with Harrah’s Philadelphia): If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) or MD: visit mdgamblinghelp.org or WV: visit 1800gambler.net; AZ: Call 1-800-NEXT-STEP; IN: Call 1-800-9-WITH-IT; IA: Call 1-800-BETSOFF. ©2024, Caesars Entertainment. WASHINGTON, DC: It is unlawful for any individual who is noticeably intoxicated or impaired to engage in sports wagering. Know When To Stop Before You Start®. Gambling Problem? Call 1-800-GAMBLER or text 800426. OLG Class A licensed Operator. Data & text rates may apply. Gambling Problem? Call 1-800-GAMBLER. MA: CALL 1-800-327-5050 or visit gamblinghelplinema.org. NY: Call 877-8-HOPENY or text HOPENY (467369)

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Each of these sports betting sites was expected to launch in the area on Monday, July 15, but are still waiting on the district’s mayor, Muriel Bowser, to sign the budget into law officially. Bowser has until July 25 to either sign or reject the budget.

The expansion of D.C.’s sports betting market may be great news for bettors in the city, but questions remain about FanDuel’s future and the outlook for any other online sportsbooks in the District.

The new landscape for D.C. online sports betting

The D.C. Council’s new budget would mark two important changes to the sports betting landscape in the nation’s capital. 

First, it expands the scope of Class A sports betting licenses in the District, which allows the city’s four sports venues to operate retail sportsbooks. BetMGM and Caesars Sportsbook each hold Class A licenses and operate retail sportsbooks at Nationals Park and Capital One Arena, respectively. Those licenses also would permit them to operate their mobile apps on a limited basis. Sports bettors could use the BetMGM and Caesars Sportsbook mobile apps to place online sports bets as long as they were within a two-block radius of those retail locations.

The D.C. Council’s new budget would allow Class A license holders to provide online sports betting throughout the city, which gave BetMGM and Caesars a headstart on their expansion. FanDuel Sportsbook also holds a Class A license and operates a retail sportsbook at Audi Field. The District’s fourth sports venue is St. Elizabeth’s East Entertainment and Sports Arena, which does not currently have a retail sportsbook.

The second major change under the Council’s new budget is the creation of Class C licenses, which allow sports franchises that play 90% of their home games in D.C. to partner with one sports betting operator to offer online sports betting. There are seven such franchises in D.C.:

  • D.C. Defenders (UFL)
  • D.C. United (MLS)
  • Washington Capitals (NHL)
  • Washington Mystics (WNBA)
  • Washington Nationals (MLB)
  • Washington Spirit (NWSL)
  • Washington Wizards (NBA)

Class C licenses will cost $2 million to acquire and will be good for an initial term of five years, after which they will require a $1 million renewal fee. Class C license holders will also pay a tax rate of 30% of their gross gaming revenue. With their Class A licenses, BetMGM and Caesars will now pay a 20% tax rate after previously being taxed at a 10% rate.

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Available states for this promotion

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The NFL’s Washington Commanders do not qualify for a Class C license because they play their home games in Landover, Maryland, five miles outside of D.C. 

Altogether, the new landscape of D.C. online sports betting would account for a total of 11 sports betting licenses (four Class A, and seven Class C), assuming Bowser signs the budget. With three Class A licenses already owned by FanDuel, BetMGM, and Caesars, there is potential for up to eight new sportsbook operators in D.C. However, in a relatively small market that is already struggling, it remains to be seen if enough sportsbook operators are willing to apply for all of those available licenses. .

What’s next for FanDuel in D.C.?

FanDuel enjoyed a short-lived monopoly on the sports betting market in Washington D.C. In April 2024, the D.C. Office of Lottery and Gaming (OLG) partnered with FanDuel to replace its struggling online betting platform GambetDC. The OLG signed a five-year contract with gaming operator Intralot in 2019, which had been running the GambetDC platform. After years of failing to meet revenue projections from sports betting, Intralot subcontracted with FanDuel to replace GambetDC.

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The D.C. Lottery contract with Intralot expired on July 15, the same day that the new sports betting were expected to go into effect. FanDuel previously indicated that it would dissolve its partnership with the D.C. Lottery if the budget provisions expanding sports betting in the District were passed. 

FanDuel operates a retail sportsbook at Audi Field and will use its Class A license to continue operating its mobile app throughout the city. It just would not be doing so in partnership with OLG. That also means it would cease to operate various retail sports betting kiosks throughout the District.

DraftKings and Fanatics could enter D.C. market

With seven new Class C licenses now available in D.C. and three of the four available Class A licenses occupied by FanDuel, BetMGM and Caesars, there are opportunities for up to five more sportsbooks to enter the D.C. market. 

DraftKings Sportsbook and Fanatics Sportsbook have expressed support for the expansion of sports betting in D.C. and are expected to pursue licenses to enter the market. Some other online sportsbooks that could apply for new licenses include bet365 and BetRivers.

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