Sportsbook Companies Want Competitive DC Market

Rivals Seek Competitive Mobile Sports Betting Market in Washington DC

By Amelia Walker Senior Content Writer Updated: 20 May 2024

Amelia Walker Senior Content Writer

Amelia Walker is a Senior Content Writer at Betting.US. She has a law degree and deep knowledge of the gambling laws in the United States. Her mission is to keep players informed about responsible gambling, while her passion for sports helps her create useful guides. Amelia has over a decade of experience in betting, which has positioned her as a trusted voice among our readers.

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Operators Testify Before City Council

Representatives from the rival gaming companies testified this week to the DC City Council’s Committee on Business and Economic Development, which includes Councilmember Kenyan McDuffie. In March, McDuffie proposed legislation to expand the number of operators allowed to offer mobile betting in the District.

The companies argue that the current FanDuel monopoly, enabled by a contract with Greek company Intralot that runs through mid-2025, is causing the city to miss out on significant revenue. Brandt Iden of Fanatics stated at the council meeting:

Consumers are either traveling to the surrounding states to wager or, worse yet, placing wagers in the illegal offshore market, where there are no responsible gaming protocols to protect customers.

While online gambling companies often come under criticism for their attempts to lobby US politicians, it does appear that the rival gaming companies pushing for change have a point. For many, it does seem unfair that FanDuel has a de-facto monopoly on sports betting in the state – and with the industry already worth billions of dollars, it’s not surprising to see other companies attempting to change things.

Hurdles to Opening the Market

However, opening up the Washington DC sports betting market faces several challenges. The Intralot contract giving FanDuel sole mobile rights doesn’t expire until 2025 and it’s unclear what it would take to void that agreement early. For example, the companies wanting to be able to offer sports betting facilities themselves may have to “buy out” the contract – and it’s unclear how much this would cost, if a monetary figure is agreed upon.

Alternatively, they could attempt to get lawmakers to void the original contract – but this is unlikely to be a quick process and could end up taking far longer than hoped.

Additionally, bar, restaurant, and small retail owners who have betting kiosks fear losing that revenue stream if the city allows more companies to begin offering sports betting services to residents. This will likely become an important part of the campaign, as these kiosks are seen as very important for attracting and retaining customers for some small businesses.

Operators Seek to Expand DC Presence

BetMGM, Caesars, DraftKings and Fanatics all currently offer mobile sports betting in the nearby states of Maryland and Virginia. BetMGM and Caesars even operate retail sportsbooks at DC stadiums. However, now, they’re all eager to gain the same mobile market access that FanDuel now enjoys.

The potential is clear – in just its first two weeks, DC bettors placed $14 million in wagers through the FanDuel app. But ending the Intralot deal early could prove difficult, frustrating McDuffie who believes DC deserves a better sports betting situation. As it stands, FanDuel will continue to dominate Washington DC’s mobile sports betting scene – but whether this changes remains to be seen.