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FanDuel Flies out of Gates in Washington, D.C.

Robert Linnehan

by Robert Linnehan in Sports Betting News

Updated May 22, 2024 · 11:24 AM PDT

FanDuel Sportsbook
Betting kiosks at Belterra Casino Resort. Belterra Fanduel Sportsbook 14
  • FanDuel generated approximately $30 million in handle during first month of operation
  • The D.C. Officer of Lottery and Gaming described the transition from GambetDC as “successful”
  • Customer usage increased by 673%

It’s safe to say Washington, D.C., sports betting users do not miss GambetDC.

According to the D.C. Office of Lottery and Gaming, during FanDuel’s first 30 days of operation in the district users bet approximately $30 million and generated $5 million in gross gaming revenue across April and May.

FanDuel launched in the district on April 15.

FanDuel Generates Millions in Taxes

Through FanDuel’s first 30 days of operation from April 15 through May 14, the sports betting operator generated a 673% increase in handle and an 887% increase in gross gaming revenue over the same period in fiscal year 2023.

“The transition to FanDuel, the market leader in mobile sports wagering, ensures the long-term viability of mobile sports wagering in the District,” said Frank Suarez, the Executive Director of OLG, in a press release. “In addition to a 40% share of GGR and a guarantee of $5 million in revenue in its first year, the FanDuel partnership brings the benefits of a respected brand, commitment to responsible gaming, an established userbase, and a superior sports wagering experience for District residents and visitors. FanDuel’s first 30 days have not only met, but exceeded, expectations.”

FanDuel reported $5 million in gross gaming revenue during its first 30 days, which generated $1.9 million in revenue for the district. Washington, D.C., receives 40% of the gross gaming revenue totals each month. The nearly $2 million in revenue for the district was an increase of 690% in revenue over the same period last fiscal year when GambetDC was the lone sports betting operator for patrons.

Under GambetDC, the district’s per capita sports wagering revenue was $2.71. Based on FanDuel’s first 30 days of operation, the per capital sports wagering revenue rate may rise to over $19, according to the OLG. This would place the district among the highest revenue generating markets in the country on a per capita basis.

Additional Operators in D.C.?

While FanDuel is currently the only operator in the district, one local lawmaker is hoping to open D.C. up to more sports betting companies.

D.C. Council Member Kenyan McDuffie recently introduced his Sports Wagering Amendment Act of 2024, which would allow up to seven online sports betting operators in the district.

McDuffie’s bill would expand Washington, D.C.’s sports betting market to potentially include up to seven online sports betting skins. A new classification of sports betting license, Type-C licenses, would allow sports franchises in the district to partner with one sports betting operator to conduct online sports betting.

Sports franchise that plays 90% of its home games in the district would be eligible for a Type-C license. This would 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

The new bill would tax Type-C license holders at a rate of 30% of gross gaming revenue. A Type-C license would cost $2 million to acquire for five years and a $1 million renewal fee after that. It also calls for an increase of the retail sports betting tax rate for Type-A license holders from 10% to 20% of gross gaming revenue.

At a recent Business and Economic Development Committee, Suarez said the bill puts the lottery commission in an awkward position. The lottery currently requires a 40% share of gross gaming revenue from FanDuel, he said, and if the amended sports betting bill were to carry a 30% tax it would hamper the lottery’s ability to find a partner.

Additionally, the contract between the lottery and Intralot runs until mid-July and the lottery has requested a two-year extension with Intralot. Even if they hoped to change lottery system operators, an RFP would have to be prepared to do so, Suarez said, which takes nearly a year to complete. This likely leaves Intralot as the lottery and sports betting system operator for the time being.

Intralot allowed FanDuel to replace GambetDC as the district’s loan operator after GambetDC failed to deliver on promised taxes and gross gaming revenues.

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