By BBBB
GambetDC misunderstood the market – believing that casual bettors weren’t looking for highly competitive odds.
Washington, DC, is poised for a significant change in its sports betting landscape as FanDuel is set to replace GambetDC as the district’s primary sports betting app starting April 15th, 2024.
This move, endorsed by the Washington, DC, Office of Lottery and Gaming (OLG), follows GambetDC’s underwhelming performance, (in addition to its notable iOS malfunction during the Super Bowl Sunday of 2022).
GamBetDC lost millions of dollars throughout 2021 as a result of significant investment in marketing and lower-than-predicted revenues across the year.
In 2022, the DC Lottery revealed that GambetDC cost the district an estimated $4 million during its first full year of operation.
Transition Timeline
The handover: April 14th is the last day for placing bets through GambetDC. Users are given a deadline until October 15 to withdraw any remaining funds from their GambetDC accounts before deactivation. The introduction of FanDuel brings not just a change in apps but a comprehensive array of betting services, including an accessible website and physical betting locations.
This transition will include a phased integration of FanDuel betting kiosks across the district, replacing the existing GambetDC kiosks.
For ongoing wagers, GambetDC has clarified that bets on events before July 1, 2024, will be honored until their conclusion, while bets on events from July 1, 2024, onwards will be nullified and refunded.
Financial Promises and Projections
FanDuel has committed to generating substantial tax revenue for Washington, DC, promising a minimum of $5 million for the contract year July 2024 to July 2025, with a minimum of $10 million annually for the following four years. This commitment totals a guaranteed $45 million over five years. FanDuel’s internal estimates suggest an even brighter financial contribution of over $119 million in tax revenue to the district in this timeframe. Additionally, FanDuel will cover annual operating costs, including payment processing, marketing, and retailer commissions, ranging from $2 million to $4 million.
Potential for Increased Competition
A proposal by DC Council member Kenyan McDuffie seeks to expand the district’s online sports betting offerings, potentially introducing competitors like BetMGM and Caesars Sportsbook into the broader market. These entities currently operate mobile betting within a limited radius around their physical locations, but the new measure could pave the way for their expansion across the district, increasing competition in a market that already faces comparisons with neighboring Maryland and Virginia‘s diverse betting options.
Read more about Washington DC Gambling.
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