Washington, D.C. Online Sports Betting Remains Limited Until Budget Signage

Jul 12, 2024; Milwaukee, Wisconsin, USA; An Washington Nationals hat and glove sit in the dugout during batting practice prior to the game against the Milwaukee Brewers at American Family Field. Mandatory Credit: Jeff Hanisch-USA TODAY SportsThere is currently no districtwide online sports betting in Washington, D.C.All Type-A license holders are limited to a two-block radius to offer online sports bettingFanDuel, BetMGM, and Caesars Sportsbook are waiting for the D.C. budget to be signed into law to offer districtwide online sports betting

No operators are legally allowed to offer online sports betting throughout the confines of Washington, D.C., a change that its sports betting license holders, and customers, did not foresee.

BetMGM, Caesars Sportsbook, and FanDuel are all licensed to offer sports betting in the district, but now do so under Type-A licenses. The council approved FY 2025 D.C. budget allows Type-A license holders to offer sports betting districtwide, but the bill has yet to be signed into law by Mayor Muriel Bowser.

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Bowser has until July 25 to potentially sign the bill into law, so online sports betting could be in a holding pattern in D.C. until that date.

FanDuel’s Districtwide Subcontract Expired

Since April, FanDuel has held a monopoly on districtwide online sports betting through a subcontract with Intralot. Intralot has held an exclusive contract with the Office of Lottery and Gaming (OLG) since 2019 to offer online sports betting in D.C.

However, Intralot’s contract with the OLG expired on Monday, July 15, also ending FanDuel’s subcontract with Intralot.

Due to its subcontract expiring with Intralot, FanDuel does not currently have a legal mechanism to offer online sports betting throughout the district. It can now offer retail sports betting through its Type-A sports betting license held in partnership with D.C. United at Audi Field and online sports betting within a two-block radius of its retail book.

“FanDuel remains committed to providing the District and its residents with a best-in-class sports betting offering. Upon final approval of the FY2025 DC Budget, FanDuel will resume its sports betting offering as a Class A operator in partnership with DC United at Audi Field and continue to offer our citywide mobile app to the District of Columbia,” A FanDuel spokesperson said in an official statement.

Waiting on Budget

FanDuel never considered it would have to cease online sports betting in the district, and BetMGM and Caesars Sportsbook both planned to launch districtwide on July 16. However, much to their surprise, Bowser has yet to sign the budget into law, which will allow for up to seven online sports betting operators to do business in the district and creates a new type of sports betting license.

D.C. council members consented to the expanded online sports betting market after unanimously approving the District’s FY 2025 budget on final reading in June. The new budget allows existing Type-A sports betting license holders to offer online sports betting throughout the District and outside operators to apply for newly created Type-C licenses.

The new class of license allows 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.

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