Next week, a number of competitors will be able to enter the Washington, DC, mobile sports wagering industry, ending FanDuel's temporary monopoly.
BetMGM will launch mobile betting in the District on Monday, and there are rumors that Caesars Sportsbook may go live in the city on July 15. At Nationals Park, BetMGM now operates a retail sportsbook and is able to provide mobile betting within two blocks of the stadium. Caesars has a retail book at Capital One Arena as well, but like its competitors who aren't FanDuel, its sports betting reach is restricted to the Washington, DC area.
The city moved quickly from having one mobile operator to at least three. To increase the size of DC's mobile sports wagering market, council member Kenyan McDuffie (I-At Large) submitted an amendment to the fiscal 2025 budget two weeks ago. It seems that the budget, approved by Mayor Muriel Bowser (D), is opening the door for competition in sports betting.
Among the gaming businesses that spoke before the city council's Business and Economic Development Committee in May to support the council's decision to open the market were BetMGM, Caesars, DraftKings, and Fanatics.
FanDuel Is Probably Disappointed
It's likely that FanDuel, a division of Flutter Entertainment (NYSE: FLUT), is not happy about Washington allowing rivals into its mobile betting market.
Following the approval by the city council for Intralot to assign its responsibilities to a third party, the operator assumed control of the city in April. The city made the right decision in letting Intralot manage its responsibilities and abandon the underperforming GambetDC app, as evidenced by the initial monthly data. FanDuel has increased gross gaming revenue (GGR) and handling, which means the city is receiving more tax income.
Unsurprisingly, FanDuel had already informed the DC Office of Lottery and Gaming (OLG) that if the sports betting market was made available to other players, it would try to sever its contract with the city. FanDuel has made it clear to the City Council that it has the ability to end the contract, but Flutter has not yet made a public statement regarding DC's expansion plans.
“Should Subtitle R be enacted, FanDuel will transition its operations in the District under its Class A license under the new regime consistent with its pre-existing contractual relationship, and invoke its termination right under the subcontract,” wrote FanDuel President Christian Genetski in a June letter to councilmembers.
The Growth of DC Sports Betting Could Affect Kiosk Operators
More than sixty sports betting kiosks are located in retail establishments including pubs and restaurants around the District. These companies have previously expressed to the city council their concern that the revenue they receive from the machines may be negatively impacted by the city's mobile sports betting market's wider expansion.
FanDuel had already informed the council that if more competitors entered the market, it would not support those machines.
In relation to those competitors, it's feasible that Fanatics and DraftKings may make an appearance in the Washington, DC area as well, but they will require a partnership with a major sports club. Since BetMGM and Caesars already have these connections, they can start providing mobile sports betting the next week.