In a pivotal turn of events for the sports betting landscape of Washington, DC, the Office of Lottery and Gaming (OLG) has announced a strategic shift away from its current underachieving sports betting platform, GambetDC, managed by lottery vendor Intralot.
With an existing contract concluding on July 14, the OLG has greenlit Intralot’s proposal to assign its online sports betting duties to the renowned operator, FanDuel. An approval by the OLG of a two-year contract extension, currently under consideration, would equip FanDuel with a potential two-year head start over competitors in the digital sports betting market of the District.
Frank Suarez, the lottery chief, outlined to the DC Council’s Committee on Business and Economic Development how the two-year timeframe would be instrumental in generating an RFP (request for proposal). The RFP would in turn decide on a single or multiple new vendors for the jurisdiction’s sports betting operations.
A new competitive marketplace framework for Washington, DC, could be on the horizon if a bill filed by Councilmember Kenyan McDuffie passes. This bill poses a stark contrast to the current single-operator model and urges for a multi-vendor approach in the District’s sports betting economy. Despite its inclusion on the Business and Economic Development meeting agenda slated for May 6, the DC Council has yet to take formal steps regarding bill 25-0753.
Should McDuffie’s bill secure passage and Intralot’s contract be extended, it would effectively grant Intralot—and by extension FanDuel—a two-year exclusive run before welcoming other operators into the fray.
The OLG recently shared its plans to initiate the FanDuel digital platform on April 15. Following this, the phased replacement of GambetDC kiosks with FanDuel offerings at retail venues is anticipated to begin. In the interim, the OLG assures that wagers placed through GambetDC leading up to April 14 but settled by June 30 will remain valid. Customers will have the opportunity to withdraw GambetDC funds until October 15; however, the integration of those funds with FanDuel accounts is not feasible. Consequently, patrons must create new FanDuel accounts for continued betting in the District post-April 14.
As the structure stands, OLG’s mandate binds it exclusively to lottery vendor Intralot, due to extant regulations permitting only a single wagering platform accessible citywide. McDuffie’s legislation, if enacted, would broaden the regulatory framework, allowing multiple platforms to operate throughout DC.
In clarity, Suarez communicated to the committee that the sought-after two-year extension would allow Intralot to prolong both the lottery and wagering contracts. However, beyond this period, a reevaluation could take place enacting a separation of the contracts, potentially terminating Intralot’s automatic sports betting contract renewal.
Addressing the Business and Economic Development hearing, Suarez highlighted that drafting, accepting, vetting bids, and eventually awarding a contract, an elaborate RFP process by nature, typically spans a year. The proposal for the two-year Intralot/FanDuel contract extension aims to provide adequate time for the issuance of one or more licenses, followed by the potential licensing of additional or alternate operators.
While FanDuel may relish this development, other sports betting operators in DC are likely discontented by the perceived partiality. BetMGM and Caesars Sportsbook, already entrenched in the DC betting scene through venue partnerships and limited zone offerings, could have easily expanded their services citywide by adjusting geofencing. Moreover, other sports betting entities such as DraftKings, ESPN BET, and Fanatics Sportsbook expressed eagerness to penetrate the market due to their proximity to Maryland and Virginia. None, however, were considered candidates to succeed GambetDC, echoing prior exclusivity in Intralot’s no-bid contracts.
As the sports betting narrative in Washington, DC continues to evolve, industry stakeholders and betting enthusiasts attentively await the unfolding regulatory adjustments and strategic alliances that will shape the future of sports wagering in the nation’s capital.
