D.C. City Council Paves Way for Expanded Online Sports Betting

Jun 21, 2024; Denver, Colorado, USA; Washington Nationals right fielder Lane Thomas (28) celebrates in the dugout after scoring on an RBI in the fourth inning against the Colorado Rockies at Coors Field. Mandatory Credit: Isaiah J. Downing-USA TODAY SportsThe D.C. City Council approved its budget on final reading to allow additional online sports betting operators into the districtFanDuel is currently the only district-wide online sports betting operatorThe new rules allow for up to seven total online sports betting operators

An expansion of Washington, D.C. online sports betting could be coming as early as next month.

Members of the Washington, D.C. Council approved the District’s fiscal year budget on final reading Tuesday afternoon, which includes language to allow up to seven online sports betting operators to do business in the district.

FanDuel is currently the only operator that can legally offer district-wide online sports betting through its partnership with the Washington, D.C. Lottery and Intralot.

New Operators Potentially by July

Council members yesterday unanimously approved the District’s FY 2025 budget on final reading, which will allow additional sports betting operators to do business in D.C. starting in July. The budget now heads to Mayor Muriel Bowser (D) for her approval and a 30-day review congressional review after.

With this new budget, the city council will allow its existing Type-A sports betting license holders to offer online sports betting throughout the District and operators to apply for newly created Type-C licenses. Language from Council Member Kenyan McDuffie’s Sports Wagering Amendment Act of 2024 was included in the initial budget discussions two weeks ago by Council Chair Phil Mendelson, as opposed to the bill going through the typical regulatory process.

The budget creates a new type of sports betting license, classified as a Type-C license, to allow sports franchises in the district to partner with one sports betting operator to conduct online sports betting. The budget will tax Type-C license holders at a rate of 30% of gross gaming revenue and will cost $2 million to acquire for five years. A $1 million renewal fee will be required after the initial term runs out.

FanDuel is currently the only operator allowed to offer online sports betting throughout the entire district. The operator did not respond to a request for comment.

Sports franchises that play 90% of its home games in the district will be eligible for a Type-C license. This will leave the following franchises and stadiums eligible for one of the new types of sports betting licenses.

Audi FieldCapital One ArenaDC UnitedNationals ParkWashington CapitalsWashington NationalsWashington Wizards

There are currently three existing partnerships in D.C. between sports betting operators and sports franchises. Caesars Sportsbook hosts a retail sportsbook at Capital One Arena, FanDuel hosts a retail sportsbook in Audi Field, and BetMGM hosts a retail sportsbook in Nationals Park. BetMGM and Caesars Sportsbook can only offer online sports betting to customers who are within a two-block radius of their retail sportsbook.

These operators currently hold a Type-A license in the district.

During the initial budget discussions, McDuffie revealed that Fanatics Sportsbook and DraftKings both expressed interest in the new licenses. DraftKings addressed the budget approval on X.

“We want to thank @ChmnMendelson, @CM_McDuffie, and the rest of the @councilofdc for taking a major step towards expanding mobile sports betting options in the District by approving changes to the District’s sports wagering framework as part of the Budget Support Act. We look forward to the potential opportunity to introduce D.C. sports fans to our mobile sportsbook product.”

Kiosk Amendment Included in Budget

McDuffie proposed an amendment to the budget to ensure sports betting kiosks also remain in the district’s plan. Under the current deal between FanDuel and the D.C. lottery, the sports betting operator must provide sports betting kiosks for use in local businesses throughout D.C.

While McDuffie noted that he expects FanDuel and the lottery to honor the deal and provide kiosks moving forward, the amendment gives other licensed operators the ability to offer kiosks if FanDuel and the lottery do not.

The council approved the amendment by a 10-1 vote.

D.C. Sports Betting History

Since launching online sports betting in May 2020, Washington, D.C. has only allowed one online sports betting app to do business District-wide. Intralot, through a partnership with the lottery, launched GambetDC in May 2020 as the District’s first sports betting operator, but the app was scuttled this past April after horrendous returns in favor of a new deal with FanDuel.

The contract between the Washington, D.C. lottery and Intralot runs until mid-July and the lottery requested a two-year extension with the company.

Frank Suarez, executive director of the lottery who shepherded the district through its sports betting launch, recently resigned from his position to take a new job in Connecticut.