Sports Betting Market

Sports betting in Washington D.C. has seen a dramatic turnaround since the legalization in May 2020, thanks to recent changes in the market. For years, D.C. bettors were limited to using the glitchy and underperforming GamBetDC platform, which was the city’s sole operator. However, the tide turned in April 2024, when D.C. officials ended their contract with GamBetDC and brought in FanDuel Sportsbook as the new operator. The move has already proven to be a game-changer, delivering impressive results for both bettors and the district’s revenue.

FanDuel’s Rapid Success as the Sole Operator

In just three months, from April to June 2024, FanDuel accepted a staggering $68.5 million in betting handle in Washington D.C., outperforming GamBetDC’s entire 2023 handle of $66.4 million. This achievement is even more remarkable considering it was accomplished outside of football season, which typically drives the highest betting volumes. The potential for D.C.’s sports betting market is clearly vast, especially with a competent operator like FanDuel at the helm.

During its initial three months, FanDuel also generated $11.3 million in sports betting revenue, surpassing the $9.5 million that GamBetDC managed to accumulate over its last 18 months. As a result, FanDuel contributed $4.5 million in taxes to the district in just three months, a sum greater than GamBetDC’s total tax contributions for the entire 2022 and 2023 calendar years combined. This underscores not only FanDuel’s popularity among bettors but also the substantial financial benefits to the local government.

Overall, more than 87% of sports betting revenue in Washington D.C. for the second quarter of 2024 came from FanDuel, highlighting its dominance during its initial months as the sole operator. However, this market landscape is poised for change as new competitors enter the scene.

Expansion of DC Sports Betting Market

The online sports betting landscape in Washington D.C. has undergone significant changes in recent months. While FanDuel enjoyed a head start as the exclusive operator from April to June, the district has since expanded its market to include more sportsbooks. In July 2024, Washington D.C. announced the approval of additional operators, significantly altering the competitive landscape.

Previously, Caesars and BetMGM were restricted to operating within a two-block radius of their physical locations at Capital One Arena and Nationals Park, respectively. However, with the introduction of the Sports Wagering Amendment Act, these operators are now permitted to accept bets throughout the entire district. The act also introduced seven additional licenses for operators willing to partner with local professional sports teams.

As a result, Caesars and BetMGM have expanded their reach, and DraftKings has entered the market by partnering with D.C. United, the city’s MLS team. More sportsbooks are expected to launch in the district in the coming months, creating a more competitive environment.

While FanDuel has enjoyed a strong start as the sole operator, the arrival of these new competitors is set to shake up the market. The coming months will be crucial in determining how these sportsbooks perform and how they impact D.C.’s growing sports betting industry.