FanDuel generated $4.9 million (£3.8 million/€4.5 million) in revenue during its first full month as the official sports wagering platform for the Washington DC Office of Lottery and Gaming (OLG).
In May, the first complete month of its operation in Washington DC, FanDuel reported handling $29.7 million in bets. This figure represents a staggering 450.0% increase compared to the $5.4 million wagered in the same month last year under the previous operator, GambetDC. Players won a total of $24.9 million from their bets with FanDuel last month.
FanDuel officially commenced its role in DC on April 15, following the OLG’s transition from Intralot-run GambetDC, which had been its long-term partner for sports betting.
The $4.9 million generated by FanDuel this May significantly surpasses the $711,282 reported by GambetDC in the same month the previous year. Revenue is calculated by subtracting player winnings from the total bets placed during the month.
Interestingly, the amount generated and wagered with FanDuel exceeds that of all operators combined for any previous month in DC. Other operators active in the DC market include BetMGM and Caesars Entertainment. Last month, the OLG released figures for FanDuel’s first 30 days of operation in Washington, DC, showing $5.0 million in revenue.
The Status of GambetDC in May
While GambetDC has lost its online presence in DC, the brand maintained a minor presence in the market through its kiosks. In May, these kiosks generated $189,095 in revenue from $898,671 in wagers. Players won approximately $709,576 from betting via the GambetDC kiosks.
The future of these kiosks remains uncertain. FanDuel has already announced plans to replace betting kiosks at 63 lottery retailers across DC, indicating that GambetDC’s presence may be short-lived. Although the GambetDC app is still accessible, players can no longer place bets on sports. Existing customers have until October 15 to withdraw any remaining funds from the platform.
GambetDC has faced challenges in DC for several years, with Intralot, its contracted partner, struggling to deliver a competitive product. Consequently, it was no surprise when the OLG approved a request from Intralot to subcontract online sports betting to FanDuel, which allowed FanDuel to launch in DC shortly thereafter.
Beyond the increase in wagers and revenue, the partnership with FanDuel brings additional benefits to the OLG. These include eliminating operating expenses, which previously ranged between $2.0 million and $4.0 million annually. Now, FanDuel manages payment processing, promotions, marketing, and retailer commissions.
Potential for a More Open DC Market
Transferring control to FanDuel might be the initial step towards opening DC to more operators and increasing competition.
On June 12, the DC Council approved the FY2025 budget, which includes the Sports Wagering Amendment Act of 2024. The council unanimously passed the budget during a legislative meeting, with a second vote expected as early as next week.
For a comprehensive overview of the hearing, including details on a defeated amendment that aimed to eliminate the new sports betting plan, click here for the latest from Jill R. Dorson.
Source: “DC betting handle rockets 450% in FanDuel’s first full month”. iGaming Business. June 13, 2024.