The sports betting landscape in Washington, DC, is poised for a significant overhaul, igniting a growing consensus among industry players for more competitive market opportunities. The past five years have seen a tumultuous journey in the District’s approach to sports betting, culminating in a potential turning point revealed just over two weeks ago.
Recently, iGB reported that the Office of Lottery and Gaming (OLG) approved a vendor switch, giving the reins of the District’s lottery sports betting platform to FanDuel from the much-maligned Intralot. While access to FanDuel’s services will undoubtedly enhance the sports betting experience across the District, industry experts and consumers alike are questioning whether a monopolistic approach is in the city’s best interests. An open and competitive market could serve The District more effectively, but the OLG’s steadfast loyalty to Intralot raises eyebrows.
Across the country, the merits of competitive markets over single-source systems have been demonstrated by enhanced consumer experience and increased state revenue. Currently, Delaware, New Hampshire, Oregon, and Rhode Island are the only legal online betting states employing a single-operator model, all under the aegis of state lotteries. Notably, only New Hampshire’s lottery engaged in a competitive bidding process for its single-source market.
Operators like DraftKings and Casears Sportsbook, which run platforms in some of these states, have highlighted the importance of competition in securing more attractive pricing, promotions, and overall superior services for consumers. These, in turn, are anticipated to create more tax-productive markets.
GambetDC, operated by the District’s lottery, has faced criticism for its subpar performance, even being eclipsed by Caesars in the rankings, despite being the city’s sole online sportsbook with citywide reach. When compared to the tax revenue performance of other single-operator states, taking into account population differences, GambetDC’s results are unimpressive, suggesting potential underperformance in handle and gross gaming revenue.
The platform’s issues have been well documented, from user navigation difficulties to less competitive odds and even experiencing an outage during the Super Bowl in 2022. However, GambetDC, as with all platforms, faces unique challenges in Washington, DC related to prohibition on wagering on federal lands and exclusion zones around professional sports facilities.
The district’s strict regulations have carved out domains for BetMGM and Caesars Sportsbook at Nationals Park and Capital One Arena and for FanDuel, partnered with Audi Field, to potentially establish similar operations, though none have yet launched a platform.
Decisions made by the DC Council in 2019 paved the way for a single-operator sports betting market, a move that was questioned even as it unfolded. The decision was anchored in a desire to be first to market in the region, with the controversially awarded contract to Intralot underpinning the single-operator approach.
Since then, Maryland and Virginia, both bordering DC, have established competitive markets featuring a plethora of consumer choices and exhibit stronger performance metrics in both markets. Councilman Kenyan McDuffie highlighted that the hoped-for ‘first to market’ advantage simply did not materialize.
In response to these longstanding inadequacies, McDuffie recently proposed legislation that could dismantle the Intralot-FanDuel deal and erect a competitive market structure. The industry is rallying behind the push for a competitive bid process, signaling that the upcoming expiration of Intralot’s contract offers a timely opportunity for reform.
While the stakes are high, there is consensus among stakeholders that a competitive betting market would benefit not only the District’s revenue but also the consumer’s overall wagering experience. FanDuel’s induction might signify an improvement, but it is the promise of an open market that stirs greater anticipation among sports betting enthusiasts in the District.
What comes next hinges on the DC Council’s actions and whether it can expedite a new, competitive market framework before the Intralot contract expires. If successful, this move could revitalize the sports betting landscape in Washington, DC, potentially converting the existing sports betting disaster into a precedent-setting recovery story.
