The burgeoning partnership between FanDuel and the Office of Lottery and Gaming (OLG) in Washington, D.C. has already begun to pay dividends, with FanDuel’s online sportsbook reporting an impressive $5.0 million in gross gaming revenue within its first 30 days of operation. The collaboration officially commenced on April 15, following OLG’s shift from their long-time sports betting partner, GambetDC, which was managed by Intralot.
Compared to the corresponding period last year, FanDuel’s initial revenue figures reflect an astonishing 887% increase, illuminating the profitable potential of this new venture. This notable jump is a stark contrast to the performance of GambetDC, which has had its share of challenges in the DC market. The region’s betting handle also showcased substantial growth, with players wagering a hefty $30 million on sports during the first month of FanDuel’s operation, marking a 673% rise year-on-year.
The surge in revenue has not only benefitted FanDuel but also proved advantageous for the district. Under the agreement, FanDuel is committed to sharing 40% of its revenue with DC, which amounted to $1.9 million for the 30-day period, reflecting a 690% increase compared to the same timeframe in the previous year.
“FanDuel’s entry into the DC market ensures the long-term viability of mobile sports wagering in the district,” stated Frank Suarez, executive director of OLG. He highlighted that beyond the 40% share of gross gaming revenue (GGR) and a guaranteed $5.0 million in revenue for the first year, the partnership brings the prestige of a well-established brand, a commitment to responsible gaming, an existing user base, and an improved sports wagering experience for both residents and visitors of the District.
Looking forward, the OLG anticipates that the launch of FanDuel will elevate DC’s per capita sports wagering revenue significantly. Between September 2023 and February 2024, the per capita revenue from sports wagering in DC, accounting for both tax and GambetDC revenue, stood at $2.71. However, early figures from FanDuel suggest that this figure is poised to exceed $19, potentially placing DC among the top revenue-generating markets on a per capita basis in the United States.
“The transition to FanDuel has not only met but exceeded expectations,” emphasized Suarez. This strategic move has brought a breath of fresh air to DC’s sports betting landscape, which had been clouded by the hardships faced under GambetDC’s tenure. Intralot, the operator behind GambetDC, struggled to deliver a competitive product, culminating in a $4.0 million loss in 2021.
Recognizing these operational challenges, the OLG approved a request from Intralot to subcontract online sports betting to FanDuel. This swift decision facilitated FanDuel’s rapid entry into the DC market, initiating operations just a few days following the approval.
.
Partnering with FanDuel also alleviates a significant financial burden from the district. The OLG no longer needs to cover operating expenses, which previously ranged between $2.0 million and $4.0 million annually. FanDuel now handles all aspects of payment processing, promotions, marketing, and retailer commissions, streamlining operations and enhancing efficiency.
While the focus has predominantly been on FanDuel’s online sportsbook, the partnership has also prompted transformations in the retail market. FanDuel is in the process of replacing betting kiosks at 63 lottery retailers across DC, marking a comprehensive modernization of the district’s sports betting infrastructure.
Despite these advancements, the GambetDC app remains operational for existing customers to access and withdraw remaining funds until October 15, though it can no longer be used to place bets on sports.
In the broader context of DC’s sports betting market, April presented a mixed bag of results. Overall revenue fell by 59.5% year-on-year to $526,689, a decrease of 62.4% from March’s $1.4 million. Betting activity remained consistent with the same month last year, with players wagering a total of $14.5 million in April, though this figure was 5.7% lower than the $15.7 million recorded in March.
Interestingly, GambetDC led the way for most of April despite ceasing operations midway through the month. Players spent $6.9 million, with $6.5 million awarded in winnings, resulting in a revenue of $394,224 for the brand. By contrast, FanDuel reported $194,236 in revenue from a $550,751 handle for the full month.
The initial success of FanDuel in DC marks a promising new chapter in the district’s sports betting saga, promising a sustainable and profitable future for all stakeholders involved.
