In a significant move that promises to reshape the sports betting landscape in the nation’s capital, the DC Council has greenlit a new budget that opens the door for commercial operators to enter an open, competitive wagering marketplace. The Budget Support Act was passed via a voice vote, and the emergency nature of the act meant it could bypass the need for congressional approval. Set to go into effect on July 15, the new budget heralds a transformative shift from a monopoly-driven market to one that encourages a wider array of operators.
Under the new framework, established players like BetMGM and Caesars Sportsbook, which currently operate at Nationals Park and Capital One Arena respectively, will be able to expand their digital offerings beyond their existing exclusion zones. These operators, already fortified by strong brick-and-mortar presences, are well-positioned to make the swift transition to offering their betting platforms across the District.
Up till now, FanDuel, operating in partnership with the DC Lottery, has held a monopoly on the market. However, this landscape is set to change dramatically. On June 5, FanDuel President Christian Genetski wrote to the DC Council signaling the company’s intention to terminate its lottery deal should the market be opened. Earlier this year, the lottery announced that its contractor, Intralot, had subcontracted with FanDuel for wagering services, effectively replacing the underperforming GamBetDC platform.
One of the most marked changes under the new regulations is the drastic reduction in the tax rate for operators. FanDuel’s monopoly privilege came with a hefty 40% tax rate, whereas the new open-market plan imposes a more manageable 20% tax rate on all operators. This reduction is expected to make the market more appealing and sustainable for a variety of betting companies.
The push towards an open market has been building momentum for several years. Council member Kenyan McDuffie, who opposed a sole-source market in 2019, was a staunch advocate for competition. His efforts, along with those of Brandt Iden, Vice President of Government Affairs for Fanatics Betting & Gaming, were crucial in getting operators to present a united front. This collaborative approach played a key role in convincing other council members and driving the decision towards an open-market structure.
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“This is a major win for operators,” Iden told iGB. “For years, this market has been held together by a thread and some silly putty. It was one of the worst-performing markets in the country, and now it will be the first to go from a single mobile operator to a competitive market. Thanks to council member Kenyan McDuffie, DC will become a leader for other sole-sourced closed markets.”
The council’s vote did take into account the potential pitfalls of this rapid transition. An amendment aimed at protecting small businesses was approved by a 10-1 vote. This amendment ensures that lottery partners like convenience stores and bars will continue to have betting kiosks. FanDuel has already committed to replacing GamBetDC kiosks with their own, but there are lingering concerns about service gaps and the willingness of new operators to provide kiosks in these locations.
Several major operators have expressed keen interest in providing kiosks and entering the DC market, noting in their testimonies earlier this year that they would be interested in doing so. This includes industry giants like DraftKings and Fanatics, who have confirmed their intent to not only join the market but also consider opening physical sportsbooks in the area.
While new operators will need to undergo a vetting process before going live, existing players like BetMGM and Caesars, already approved for online sports betting, are expected to streamline their transition to offering platforms with wider access. FanDuel, too, seems well-positioned to continue providing District-wide services seamlessly under the new market structure.
DC was previously one of six single-operator markets. Of the remaining five, four are regulated by or operated in partnership with state lotteries, and one (Florida) is an exclusive compact between the state and the Seminole Tribe. This budget vote changes the trajectory of sports betting in DC, setting a precedent for other jurisdictions moving away from monopolistic models.
As the new budget takes effect, it is poised to bring increased competition, improved service, and potentially greater revenue for the District, making it a landmark decision in the world of sports betting.
