Washington, DC Sports Betting Revenue
Washington, DC has an interesting dilemma when it comes to generating sports betting revenue. As it stands, DC’s only online platform, GambetDC, is struggling to attract sports bettors. It’s perhaps the only place in the nation where retail sports betting trumps online wagering to such an extent.
Thus, a year in, the DC sports betting industry has room to grow.
Sports Betting Dime will keep you up to date with the latest figures and analysis of monthly DC sports betting revenue reports. Below you can also scroll back in time to see the development of sports wagering in the District since legalization in May 2020.
Read on for an in-depth look at the business of sports betting in the nation’s capital.
DC Sports Betting Revenue: Month-By-Month Data
Sports Betting Dime follows the growth of legal sports wagering across America by analyzing monthly financial reports provided by each state.
Here’s what each number represents:
- Handle is the total amount wagered on sports.
- Revenue reflects the gross gaming revenue kept by sportsbooks after paying out winning bets.
- Hold percentage shows how much revenue sportsbooks kept as a function of the betting handle.
- Tax revenue displays taxes collected by the District and local jurisdictions.
The table below shows key figures from GambetDC’s launch in May 2020 to date. From the launch of DC’s first commercial sportsbooks in July 2020 onwards, revenue from GambetDC is combined with that of other operators for simplicity.
| Month/Year | Total Handle | Revenue | Hold Percentage | Tax Revenue |
|---|---|---|---|---|
| May 2020 | $9,723 | -$240 | -2.47% | $- |
| June 2020 | $223,730 | $36,985 | 16.53% | $- |
| July 2020 | $743,330 | $144,020 | 19.37% | $174 |
| August 2020 | $11,262,442 | $1,703,416 | 15.12% | $142,527 |
| September 2020 | $15,455,160 | $1,804,299 | 11.67% | $130,540 |
| October 2020 | $18,535,847 | $3,539,869 | 19.10% | $271,777 |
| November 2020 | $17,600,534 | $3,611,200 | 20.52% | $272,852 |
| December 2020 | $16,696,995 | $2,708,652 | 16.22% | $190,144 |
| January 2021 | $15,746,168 | $2,805,492 | 17.82% | $189,211 |
| February 2021 | $15,303,079 | $1,333,019 | 8.71% | $73,271 |
| March 2021 | $15,275,215 | $1,867,034 | 12.22% | $115,179 |
| April 2021 | $10,746,937 | $2,087,240 | 19.42% | $155,147 |
| May 2021 | $13,772,411 | $2,008,091 | 14.58% | $137,067 |
| June 2021 | $19,518,408 | $2,191,486 | 11.23% | $167,350 |
| July 2021 | $12,808,240 | $1,801,748 | 14.07% | $136,902 |
| August 2021 | $12,445,312 | $1,492,901 | 12.00% | $118,626 |
| September 2021 | $20,706,473 | $3,883,674 | 18.76% | $328,768 |
| October 2021 | $26,332,228 | $1,570,661 | 5.96% | $96,901 |
| November 2021 | $21,419,454 | $4,434,922 | 20.71% | $335,892 |
| December 2021 | $9,169,639 | $694,904 | 5.04% | $57,258 |
| January 2022 | $11,357,962 | $572,583 | 7.58% | $69,490 |
| February 2022 | $11,299,764 | $60,924 | 0.54% | $6,092 |
| March 2022 | $8,391,904 | $563,638 | 6.72% | $56,363 |
| Total (since launch) | $304,820,963 | $40,916,517 | 13.4% | $3,051,531 |
Sports Betting Dime will add to this table monthly with the latest DC sports betting revenue figures provided by the DC Lottery.
Note that the lottery does not specify the state’s share of the revenue from GambetDC. According to a spokesperson, approximately 50 percent of gross gaming revenue is profit for the government-run lottery. Therefore, we can assume tax revenues are a fair bit higher than those displayed above.
Latest DC Revenue News
Let’s start with a quick recap of the latest updates from DC’s monthly sports betting revenue reports.
November 2021 – While the monthly handle dipped slightly through November, Washington DC sports betting revenue was higher than ever. DC sportsbooks collected $4,434,922 thanks to a massive 20.71% hold rate.
October 2021 – For the second month in a row, Washington DC set a record for monthly sports betting volume. A total of $26,332,228 was wagered, however revenue lagged behind at $1,570,661 off just a 5.96% hold rate.
September 2021 – The Nation’s Capital smashed their monthly sports betting handle record as the 2021 NFL season got underway. DC collected $20,706,473 in total wagers, and revenue was higher than ever as sportsbooks took in $3,883,674 from a 18.76% hold rate.
August 2021 – Betting volume was relatively slow once again through August, as the DC sports betting handle stayed below the $13 million mark. Sportsbooks were also slightly less profitable this month, although this will change with NFL kickoff just around the corner.
July 2021 – Immediately following it’s record month, DC’s sports betting handle drops down below $13 million. However, the District was not the only jurisdiction that saw a slow month, and we fully expect sports betting volume to pick up again as NFL season gets underway.
June 2021 – DC reports a record month in terms of sports betting handle. June’s action totalled $19,518,408. William Hill took in over $15 million to drive the majority of the betting volume, but BetMGM coming online at Nationals Park on June 10, 2021, bodes well for the summer months with the MLB in full swing.
May 2021 – DC’s betting handle rises to $13,772,411 in May, a 28 percent increase from April figures. More than 77 percent of the handle was generated by William Hill Sportsbook at Capital One Arena, which continues to outpace the unpopular GambetDC app by a significant margin.
April 2021 – DC’s betting handle drops to $10,746,937 in April, its lowest since July 2020. Still, sportsbooks generated $2,087,240 in gross gaming revenue, reflecting a staggering hold rate of 19.42 percent.
March 2021 – DC sports bettors wager approximately $15 million for the third straight month.
February 2021 – DC’s hold rate is below 10 percent for the first time. Sportsbooks kept $1,333,019 of $15,303,079 after paying out winning bets.
Washington, DC Market Overview
To interpret the data provided in DC sports betting revenue reports, here’s some key contextual information to keep in mind.
Population (2020 Census): 689,545
In-state Pro Teams: Washington Football Team (NFL), Washington Nationals (MLB), Washington Capitals (NWL), Washington Wizards (NBA), Washington Mystics (WNBA), DC United (MLS), and Washington Spirit (NWSL)
Launch Date: May 28, 2020
Biggest Monthly Handle: $26,332,228 (October 2021)
Regulator: DC Office of Lottery and Gaming
Platforms: Online and retail
Tax Rate: 10 percent
DC Sports Betting Revenue Insights
DC will never be a top sports betting market due to its small population. Still, there’s ample room for the industry to evolve in the District. We expect DC sports betting revenue to increase in the future.
Let’s explore a couple of themes that stand out when looking at the District’s sports betting financial reports.
GambetDC Outpaced by Retail Sportsbooks
DC does technically have online sports betting, but it’s currently only available through the GambetDC platform. Unless you happen to be within a two-block radius of Capital One Arena, where you can place your bets through the William Hill mobile app, GambetDC is your only option for betting on the go.
Unfortunately, the GambetDC app isn’t very popular with DC sports bettors. Instead, they’re flocking to licensed retail locations where they can bet in person. It is highly unusual for physical sportsbooks to outperform mobile sportsbooks, and thus points to an underwhelming product run by the government.
Through the first 12 months of legal sports betting in the District, commercial operators (i.e. retail sportsbooks) have taken in approximately $103 million in wagers. By comparison, GambetDC handled under $35 million in that same time frame, and they had a two-month head start. In terms of DC’s gross gaming revenue, GambetDC has about a 29 percent revenue share overall, which pales in comparison to William Hill Sportsbook at Capital One Arena.
In an era where sports betting powerhouses such as New Jersey take in around 90 percent of handle online, GambetBC is failing to attract and retain sports bettors, who would rather place their wagers at a local sports bar or arena. Furthermore, the majority of states have set new monthly records for betting handle in 2021. DC had its best month back in October 2020. Lawmakers must ask themselves why DC sports betting revenue is stagnant.
The ability for bettors to place wagers from wherever, whenever is the basis of a thriving sports betting industry. However, GambetDC must improve its offerings or risk falling further behind. Otherwise, we’d love to see DC allow other online operators to come to market, or at least to allow William Hill to operate farther away from Capital One Arena. We’d expect DC sports betting revenue to increase steadily should that happen.
Holding Too Tight
DC finished 2020 with the second-highest annual hold rate in the nation (16.82 percent). This is far higher than the nationwide average for the year, which was 7.18 percent.
A high hold percentage basically means sportsbooks are keeping more money out of every dollar put down by sports bettors. Hold rates do fluctuate due to factors such as bet types and bet balance. They are not completely within the sphere of control for sportsbooks or local governments. However, our in-house analysis shows that GambetDC has a higher vig than most other online sportsbook operators. They’ve built-in more juice to secure a higher profit, and the result is unattractive lines.
Ultimately, a high hold percentage is bad news for sports bettors. DC’s hold rate is very rarely in the single digits, and bettors don’t like getting squeezed. Increased competition in the market could help bring the hold rate down under 10 percent, which would entice more bettors to get in the action. Here’s hoping the District will authorize additional operators for online sports betting sooner than later.
More Competition on the Way
Smack in the middle of the DMV, DC sportsbooks will soon have more competition from surrounding jurisdictions.
Virginia opened its virtual doors in January 2021 and is off to the fastest start of any state to date.
Over in Maryland, lawmakers are pressing ahead in the hopes of launching sports betting by September 2021. If things go ahead as planned, the Old Line State will have a whopping 60 online sports betting licenses up for grabs, the most any state has authorized thus far.
The Washington Metro Area alone is home to more than 6 million people, but less than a million of those live in the Capital itself. All told, DC sportsbooks are in thick competition to attract sports bettors.
Learn More About Betting on Sports in DC and Beyond
Sports Betting Dime will keep you informed with the latest on sports betting in DC and help you find the best sportsbooks for you.
See how the District compares to states across America in terms of betting volume by exploring our state-by-state sports betting revenue tracker.
Have fun and enjoy the action out there!
A lifelong athlete and sports fan who’s worked in sports for over ten years, Natalie brings a firsthand perspective and keen interest in sports business to her work. She’s excited to observe and analyze the future of the sports betting industry as it heats up.
