In a significant move within the sports betting industry, FanDuel is poised to bring its platform citywide in Washington D.C., although the precise launch date remains unspecified. A letter from March 8 reveals the Office of Lottery and Gaming (OLG)’s decision to approve Intralot’s request to introduce FanDuel as the new subcontractor for the lottery’s sports wagering platform.
The partnership with Intralot, which has faced criticism over its performance in operating GambetDC, signifies a turn in the District of Columbia’s sports betting strategy. Following GambetDC’s $4 million loss in 2021, officials are seeking a more profitable and competitive approach. Frank Suarez, the OLG’s executive director, states in the letter, “OLG and Intralot have evaluated the current platform and believe that FanDuel and its industry-leading platform will perform better within the highly competitive DMV region.” This strategic partnership is poised to boost D.C.’s presence in the sports gambling arena by leveraging FanDuel’s nationwide appeal and top-rated platform to revamp the player experience and drive revenue growth.
With FanDuel at the helm, financial burdens on the OLG are set to lighten. FanDuel will take charge of payment processing, promotions, marketing, and retailer commissions, lifting a $2m to $4m operating expenses obligation off the OLG’s shoulders annually. To commence this partnership, FanDuel will contribute a $5m “platform conversion fee” within 37 days of signing with Intralot. Furthermore, should the OLG extend its collaboration with Intralot, the District is guaranteed a return of $10m in revenue across a four-year span starting July 2025.
As a result of this transition, GambetDC’s presence, both online and across lottery retailer kiosks, will be replaced by FanDuel’s software and hardware. FanDuel is expected to outfit 63 lottery retailers with new equipment, aligning the sports betting services with its established brand and operating standards.
FanDuel’s impending district-wide availability bolsters its position in the DMV (D.C., Maryland, Virginia) area, following successful launches in Maryland and Virginia, where it reportedly holds around “50% market share.” Adding to its regional strength, FanDuel boasts market access in D.C. through a partnership with the DC United Soccer team and operates a retail sportsbook located within Audi Field.
Currently, sports betting operators in D.C. work under strict geofencing rules, limiting digital platforms to areas in immediate proximity to their partnered retail locations. This is exemplified by BetMGM’s arrangement with the Washington Nationals, enabling access around Nationals Field, with restrictions against citywide availability.
The switch to FanDuel comes amid ongoing scrutiny of Intralot and GambetDC. The D.C. City Council has been debating revenue-enhancement strategies and considering the possibility of replacing Intralot to fortify the city’s sports betting ecosystem. It’s worth noting that Intralot’s initial contract with the OLG built upon its existing lottery operations and avoided a competitive bid. With the appointment of FanDuel as a subcontractor, this maneuver around competitive bidding continues.
Since GambetDC’s launch in May 2020, the platform has contributed $8.5 million in taxes to the District. By introducing a robust player in the market like FanDuel, D.C. aims to significantly elevate its sports betting infrastructure, service quality, and financial performance in the face of regional competition. The blend of FanDuel’s operational expertise and an energized marketing strategy could very well redefine the essence of sports betting for Washingtonians, setting a new benchmark for others in the business of sports gambling to follow.
