FanDuel to Debut as Washington DC’s Exclusive Operator in April
In less than a week, on April 15, fantasy and sports betting operator FanDuel will be making its debut in Washington, DC as an exclusive online sportsbook in the district.
The news came from the Office of Lottery and Gaming (OLG) which announced FanDuel was expected to take over GambetDC during springtime after it became an Intralot subcontractor in March.
New Economic Opportunities Expected
The new changes are expected to trigger fresh economic opportunities in the district, in the context of Intralot being required to pay the OLG an initial $5 million within the fiscal year 2024.
Intralot will also cover OLG’s operating costs connected to sports betting, an amount that is close to $3 million yearly.
FanDuel also guarantees it will pay $10 million per year over the upcoming four years.
In the past four years, GambetDC has only brought $4.3 million to DC’s economy. By comparison, original projections were $84 million.
In other words, Intralot did not do a good job of attracting more revenue than the district could have made by deciding to make the marketplace available to additional sportsbook operators.
Since Intralot’s contract spreading over five years will reach its expiration date in July 2024, the change came naturally.
Plus, from 2019 onward, when Intralot started to power GambetDC, the holder of exclusive rights to online sports wagering in the district, the latter recorded a series of complaints from bettors regarding its poor performance and unfavorable odds.
This eventually resulted in the OLG deciding to enlist FanDuel.
FanDuel to Operate Under the District’s Closed Market
As explained by OLG’s executive director, Frank Suarez, FanDuel’s “industry-leading offering” is expected to ensure that Washington DC will maximize its revenue under its current contracts in 2024 while also delivering a “best-in-class experience for 18+ residents.”
The latter will keep operating in Washington under its closed market. The market bans the use of non-exclusive sportsbooks outside a two-block radius of any professional sports facilities.
The list of venues features Audi Field, Capital One Arena, and Nationals Park. FanDuel’s takeover will also include GambetDC’s retail operations.
FanDuel’s kiosks will gradually replace GambetDC’s kiosks, catering to the needs of sports bettors who prefer in-person betting over the online alternative.
The online sportsbook with a 50% market share and a solid presence nationwide will also simplify the sports wagering procedure for both residents, people living in nearby states, and the 20 million yearly visitors of the district.
OLG’s press release announcing FanDuel as the new exclusive sportsbook operator in Washington DC also informed the public that once the operator becomes the official mobile sports betting operator, problem gambling issues in the district will get more attention.
FanDuel’s platform provides built-in app safeguards and enables customers to set limits on their deposits, wagers, and time spent using the app.
