The Office of Lottery and Gaming (OLG), made an official announcement, revealing it has approved FanDuel as the new sports betting subcontractor for Intralot, Inc., the District of Columbia’s sports betting vendor. The local regulatory authority of licensed gaming products confirmed that it is still finalizing the contract, but bettors from Washington, D.C. will be able to place wagers via FanDuel’s sports betting app as soon as this spring. The world-famous brand will replace GambetDC, an operator that reportedly has fallen short of expectations.
Established in 2020 by Intralot, GambetDC got poor reviews from sports betting fans in the very beginning, with complaints ranging from uncompetitive odds to technical flaws. The brand also failed to live up to expectations about gaming tax revenue, which was estimated at nearly $20 Million annually back in 2019. In stark contrast with estimations, GambetDC generated slightly more than $4.3 Million since its launch, as confirmed by D.C. Council member Kenyan R. McDuffie. June 2023 saw the company losing money, a phenomenon in the sports wagering industry.
Frank Suarez, Executive Director of OLG, commented on the agreement and underlined that FanDuel, as a widely recognized market leader, would deliver a premier experience for all betting fans aged 18 and above, while ensuring an increase in revenue for the District. However, no mention was made concerning the existing GambetDC accounts.
FanDuel Guarantees $45 Million In Revenue During its 5-Year Agreement
Starting this spring, residents and visitors of the District of Columbia will gain access to FanDuel’s mobile sports betting platform. Under the new agreement, Intralot, Inc., in charge of D.C.’s lottery system, will pay an initial $5 Million fee.
Apart from the initial fee, payable within the current fiscal year, Intralot will undertake OLG’s sports betting operating costs, thus helping to maximize the revenue that will be allocated to the District’s general fund. Additionally, Washington, D.C.’s Certified Business Enterprises (CBE) will benefit from an increase in gaming revenue that is expected to be 1.5 to 2 times higher compared to the current one.
As a nationwide leader in sports betting, FanDuel will attract betting action from Washington, D.C.’s nearly 20 million visitors, as well as from local bettors. As far as GambetDC’s operating in-store gaming kiosks are concerned, they will be replaced by FanDuel’s gradually over time.
FanDuel released a statement, confirming the brand’s commitment to generating $45 Million in revenue throughout the five-year agreement. The first $5 Million is payable during the current fiscal year, while the remaining $40 Million is due over the final four years, or $10 Million per year. The company’s revenue projections are much higher, reaching $119 Million over the course of the five-year contract.
The Executive Director of OLG further explained that the subcontracting solution would be better suited to recover the city’s sports betting sector than rebidding. He also added that the practice of granting licenses to multiple companies, similar to most US states, would undermine the local retail businesses.
In its statement, OLG did not fail to highlight its continuing commitment to monitoring responsible gambling. With FanDuel becoming the District’s sole sports betting provider, consumers will gain access to the brand’s industry-leading tools, resources, and educational materials dedicated to responsible gambling. They can make use of the built-in mechanisms for setting limits on the amounts of deposits, bets, and time spent on sports wagering.
