Washington DC Bill Seeks to Expand Mobile Sports Betting App Market

On Wednesday, council member Kenyan McDuffie introduced a Sports Betting Amendment Act, which allows Washington, DC, to have a varied number of sports betting applications if it is approved.

According to McDuffle, who is also a member of the Council’s Committee on Business and Economic Development (CBED), this amendment act will enable competition in the DC sports betting industry, as currently it has only one sports betting app (the GambetDC app).

“Our current model isn’t working; this bill will bring needed competition into the sports wagering marketplace and allow current Class A retail sportsbook operators (located at Audi Field, Capital One Arena, and Nationals Park) to provide their mobile apps city wide.”

It is important to note that McDuffle was one of the legislators who spearheaded the push for GambetDC to be replaced in the district, given its underwhelming performance over time. Hence, with the approval of this replacement request, FanDuel is set to step in as the exclusive betting app operator through a subcontract with Intralot.

Although this decision was taken a few weeks ago, the legislators noted that allowing FanDuel to assume control of betting operations from GambetDC serves as a short-term solution.

McDuffie highlighted that residents of the city will remain limited in their choices, lacking the ability to access various platforms — an option already accessible in numerous other states.

Revenue Conquest

In addition to creating a more competitive market, the proposal aims to enhance revenue generation while also developing new avenues of opportunity for sports teams based in Washington, DC.

“It also creates a Class C mobile sports wagering license for sports teams who meet certain criteria, including being headquartered in the District of Columbia and playing 90% of their home games at a facility with a Class A retail sportsbook,” McDuffie said on tweet via X.

The updated Class C license introduces a $2 million application fee, valid for a five-year term; renewal of these licenses after the initial term would require a $1 million fee for another five years of operation.

Furthermore, the tax rate for digital sports betting stands at 30%. This rate applies whether there’s an open allocation of Class C licenses or a selective partnership model with a limited number of operators working under the Office of Lottery and Gaming’s umbrella for mobile and web-based sports wagering.

Originally, it was anticipated that the GambetDC sports betting application would bring in over $80 million in revenue. However, it is reported that GambetDC has only generated around $4.3 million over the past four years.

The sports betting amendment is also aimed at curbing tax diversion because betting platforms in the district confine their usage strictly to their respective stadiums and within a two-block radius of those locations. Hence, such limitations, coupled with the widespread criticism aimed at GambetDC for its odds and interface, have driven numerous bettors from DC to venture into neighboring Maryland and Virginia for their betting endeavors.

Also, the amendment proposes a designation of $1 million annually for the improvement of youth extracurricular activities and $300,000 set aside expressly to deal with and fight compulsive gambling-related problems. This two-pronged strategy not only promotes a more lively marketplace but also highlights a dedication to safeguarding gamblers.

READ MORE:

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• Washington DC Sports Betting Revenue Drops by 38.6% in November
• US Sports Betting Revenue Tracker