BetMGM, Caesars Join Washington, DC Sports Betting Expansion

Next week, Washington, DC's mobile sports betting market will welcome several competitors, ending FanDuel's short-lived monopoly. 

Beginning Monday, BetMGM will launch mobile betting in the District, and there are signs that Caesars Sportsbook will be accessible citywide starting July 15. At present, BetMGM operates a physical sportsbook at Nationals Park and is able to provide mobile betting within two blocks of the venue. Similarly, Caesars operates a retail sportsbook at Capital One Arena and, similar to competitors that aren't FanDuel, faces restrictions in the breadth of its sports betting reach in Washington, DC. 

The city's shift from a single mobile operator to at least three is swift. Two weeks prior, the City Council included an amendment to the proposed fiscal 2025 budget from council member Kenyan McDuffie’s (I-At Large) aimed at expanding D.C.'s mobile sports betting market. It seems the budget, signed by Mayor Muriel Bowser (D), is clearing the path for competition in sports betting. 

In May, among the gaming firms that testified before the city council’s Business and Economic Development Committee were BetMGM, Caesars, DraftKings, and Fanatics, seeking to persuade the council to open the market. 

FanDuel Likely Unhappy 

FanDuel, a division of Flutter Entertainment (NYSE: FLUT), probably isn't enthusiastic about Washington launching its mobile betting market to rivals. 

In April, the operator assumed control in the city after the city council permitted Intralot to delegate its responsibilities to an external party. Preliminary monthly figures indicate that the city made a smart decision to eliminate the underperforming GambetDC app and permit Intralot to delegate its duties, as gross gaming revenue (GGR) and handle have increased significantly with FanDuel, resulting in greater tax revenue for the city. 

Unsurprisingly, FanDuel had previously informed the DC Office of Lottery and Gaming (OLG) that it would attempt to terminate its agreement with the city if the sports betting market was available to additional competitors. Flutter has not publicly addressed DC's expansion plans, but FanDuel has communicated to the City Council that it holds the right to end its contract. 

“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.

Expansion of DC Sports Betting Might Adversely Affect Kiosk Operators 

Retail establishments like bars and restaurants, which host over 60 sports betting kiosks in the District, have informed the city council that they are concerned that an expanded mobile sports betting market might reduce the income they earn from those machines. 

FanDuel earlier informed the council that it would not back those machines if the market is allowed to other rivals. 

Regarding those competitors, it’s possible that DraftKings and Fanatics might also venture into the DC market, but they must collaborate with a professional sports team in the area. BetMGM and Caesars possess those connections, allowing them to begin offering mobile sports betting next week.