Is the DC Legal Sports Betting Scene About to Become More Competitive?

The Washington D.C. legal sports betting industry has been nothing short of a disappointment since launching in 2020, but there are efforts out there to improve the platform's availability and overall bottom line, and another of our best sports betting sites joining the fray will only help things along.

The efforts to replace the District’s only citywide sports betting app have been ongoing. FanDuel expanded its presence in the city with a new retail facility and is poised to take over as the sole citywide online provider from the underperforming GambetDC app. That factor alone should improve the market.

But perhaps the biggest news came from council member Kenyan R. McDuffie and his proposal of the Sports Wagering Amendment Act of 2024, which aims to overhaul and ultimately modernize the DC sports betting scene.

A little history of the issues in the DC market

In 2019, Greek company Intralot signed a five-year agreement with the D.C. Council to develop GambetDC, which would become the only citywide sports betting provider available to bettors hoping to place a sports wager from the comfort of their homes.

Other providers in the DC sports betting scene were to be confined to sports venues and a two-block radius surrounding their brick-and-mortar facilities. Caesars and BetMGM are currently confined to the sports venues they are partnered with and that two-block radius.

Gambet DC, from the outset, was plagued with interface issues and frequent complaints of the platform having uncompetitive odds and usability problems that made wagering a sometimes unpleasant experience.

The result was just $4.3 million in revenue from Intralot's platform since its launch in 2020, nowhere close to the estimated $84 million lawmakers expected from their mobile sports betting industry. The overall sports betting handle in the District dropped from $216.2 million in 2022 to $169.7 million in 2023.

Now for some of the proposed solutions

As mentioned, FanDuel is scheduled to take over from the underwhelming GambetDC app. Last week, the company also officially opened Sports & Social DC, a retail sports bar that expands its presence in DC past its sportsbook at Audi Field, the state's pro soccer stadium. 

FanDuel is poised to become the dominant DC sports betting app in the market with a virtual monopoly on citywide mobile wagering and its two retail facilities.

Also, last week came a push from lawmaker Kenyan R. McDuffie to overhaul what has been a disappointing sports betting industry in the District. His plan would see the licensing system changed and for a more widespread citywide online sports betting platform to be adopted.

“Changing a broken system is more complicated, frankly, than starting up sports wagering from scratch,” McDuffie said. “But the general idea we need more competition in our city sports wagering program is something I support, and I think others will support as well. And it’s what our consumers have been demanding.”

Sports Wagering Amendment Act of 2024

McDuffie's Sports Wagering Amendment Act of 2024 aims to provide residents with better choices, more at-home sports betting options, and, ultimately, the expansion of what has been a limited market.

It aims to legalize multiple DC sports betting apps that would be available throughout the District’s borders, and it could happen within the coming months.

An underrated result of a sports betting overhaul would be keeping sports teams engaged in the DC market. Washington is home to its share of pro sports franchises, including the Washington Nationals, Wizards, Capitals, Spirit, and D.C. United, all of which, under McDuffie's plan, would have a chance at their own mobile sports betting licenses with a provider of their choosing.

Sports teams would, in turn, be more incentivized to not only stay in DC but also to invest in the community.

So...

Change is coming for the Washington DC sports betting industry, and all signs point to them being positive.

Of course, the council will have to debate and ultimately approve any measures, but Gambet DC's failures may just be the catalyst that change proponents have been looking for.