Sports bettors in Washington, D.C. will have a new app for wagering in the spring.
The District of Columbia’s Office of Lottery and Gaming (OLG) announced on Saturday that FanDuel will be the new sports wagering subcontractor for Intralot, Inc. Headquartered in Greece, Intralot has been the main contractor since sports betting launched in Washington, D.C. in May 2020.
FanDuel will replace Intralot’s GambetDC app which experienced a series of issues from its start and lost more than $4 million in one year. Issues with GambetDC raised so many questions that in September 2021 the Office of the District of Columbia Auditor published a report titled, “D.C. Sports Gambling Fails to Meet Expectations.”
Under the new agreement announced Saturday, residents and visitors to Washington, D.C. will gain access to FanDuel’s sports wagering app, one of the market leaders nationally, as well as its website and retail platforms.
“FanDuel’s industry-leading offering will ensure that the district maximizes revenue under its existing contracts this year while delivering a best-in-class experience for 18+ residents,” said Frank Suarez, executive director of OLG.
While reviewing issues with the GambetDC app in 2021, Suarez repeatedly said adding more operators (FanDuel, DraftKings, WynnBET, etc…) would be the wrong move for the city’s model.
“Not only would changing the model to privately operated mobile and online model be riskier, and provide a lower share of sports wagering profits to the district, but it would also increase regulatory costs,” Suarez told members of D.C.’s Committee on Business and Economic Development in 2021.
New FanDuel Partnership
FanDuel’s mobile sports wagering platform will be available to anyone in D.C. starting this spring, OLG said in a press release. The new partnership will bring immediate financial benefit to the district, including an initial $5 million fee payable by Intralot within the current fiscal year. The initial fee alone guarantees a significant revenue increase from sports wagering for the district in 2024.
FanDuel’s strong national presence and 50% market share in neighboring states Maryland and Virginia, will allow Washington visitors to engage in legalized sports wagering. The switch to FanDuel also hopes to regain the participation of residents who engage in sports betting under the GambetDC app. GambetDC’s existing in-store gaming kiosks will be replaced by FanDuel’s on a phased basis.
While sports betting has been largely illegal for the last several decades, now over 35 states allow some form of regulated sports betting and collect tax revenue from sportsbook operators.
The OLG reported a total sports betting handle of nearly $16 million for January, down 20.7% from January 2023. Meanwhile, Virginia handled $652 million in bets while Maryland reported $544 million for January.
