The Washington, DC Office of Lottery and Gaming (OLG) has granted official approval for FanDuel to commence operations in the district. This change will be overseen through a new sports wagering subcontract established with Intralot.
The recent development comes amid continuing disputes between the OLG and the DC City Council regarding Intralot’s and GambetDC Sportsbook’s underperformance since its launch in 2020. This has ultimately led to FanDuel’s replacement in the DC sports betting industry.
According to DC Council Committee on Business and Economic Development (CBED) Chair Kenyan McDuffie, there’s been an outcry from residents about the sportsbook’s services.
“I’ve heard from many residents about their unease with the district’s woeful performance in sports betting. And I absolutely share those same sentiments, from issues around usability, customer service, and seriously declining revenue. We know the current model simply is not working.”
In order to salvage the situation, OLG executive director Frank Suarez said to initiate a contract opening for new proposals, which might span a year. Hence, permitting Intralot to subcontract would expedite the implementation of changes, potentially before the commencement of March Madness on March 17th. This alternative approach offers a more efficient pathway to ensure timely adjustments are in place.
OLG Optimistic about FanDuel Restoring DC Sports Betting Revenue
In a letter, Suarez expressed his confidence, saying FanDuel, being one of the top-tier sportsbooks in the US, will likely improve its performance and facilitate revenue growth.
“OLG and Intralot have evaluated the current platform and believe that FanDuel and its industry-leading platform will perform better within the highly competitive DMV region. Having a national, market-leading platform will help to quickly improve the player experience and drive significant revenue growth.”
The development will involve FanDuel and technology supplier Intralot taking on the responsibility for covering the operating costs linked to sports betting. FanDuel will take charge of managing payment processing, promotions, marketing efforts, and commissions for retailers.
As part of this arrangement, Intralot will make an initial payment of $5 million to OLG during the current fiscal year. This payment alone ensures a substantial boost in revenue from sports wagering for the district in 2024.
The OLG further stated that the initiatives will capitalize on FanDuel’s wide national footprint and its commanding 50% market share in neighboring states. These changes seek to serve the 20 million tourists that visit Washington, DC each year as well as rekindle the interest of locals who now wager on sports in nearby states.
As part of this transition, GambetDC’s in-store gaming kiosks will gradually be substituted with FanDuel’s offerings, marking a phased evolution in the local gaming landscape.
In other news, FanDuel named E. Sequoyah Simermeyer, as its new Vice President of Strategic Partnerships about two weeks ago.
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Caesars, BetMGM to Grow DC Sports Betting Market
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