D.C. Sports Betting Achieves Record Revenues and Handle in September

Expansion of Mobile Betting Powers Growth

The growth in D.C.’s sports betting market comes after the Sports Wagering Amendment Act of 2024, which expanded mobile betting access in the District as part of the Fiscal Year 2025 budget. The act took effect in mid-July, allowing major sportsbooks such as FanDuel, DraftKings, Caesars, and BetMGM to operate within the region.

This wider availability has given D.C. bettors more options and helped drive the market to new heights.

The $8.1 million in operator winnings shattered the previous record of $5.4 million set in May, shortly after FanDuel entered the market to operate on behalf of D.C. Lottery.

September’s handle saw an even more dramatic rise, up 43.1% from August’s $40.6 million, as the start of the NFL and college football seasons provided a massive boost.

Football Season Drives Revenue Spike

The Washington Commanders’ strong start to the season, including their 3-1 record, contributed to the increased betting activity.

The Commanders were also 3-1 against the spread, including a notable upset against the Cincinnati Bengals in Week 3, which drew significant interest from bettors.

This rise in activity, combined with the expanded mobile options, resulted in a revenue and handle that were four times higher than the same period in 2023.

Tax Revenues and Hold Rates Show Positive Trends

The surge in revenue also led to a significant inflow of tax receipts for the District, with nearly $2 million collected in September. Class A operators such as FanDuel, Caesars, and BetMGM are taxed at 20%, while DraftKings, as a standalone Class C mobile operator, is taxed at a higher rate of 30%.

These higher rates contributed to the noticeable bump in tax revenue, reflecting the District’s efforts to maximize returns from the expanding market.

Caesars posted the strongest hold rate among the operators at 17.9%, generating its first seven-figure monthly revenue since October 2022.

The sportsbook took in $5.8 million in wagers, securing $36,500 above the seven-figure mark. FanDuel followed with a 14.4% hold and revenue of $4.4 million, with a record handle of $30.5 million.

DraftKings also saw a substantial increase, with both handle and revenue more than doubling from August.

The sportsbook reported $2.1 million in revenue from $14.9 million in wagers, resulting in a 14.1% hold.

BetMGM, while experiencing a lower hold of 5.9%, still reported revenue of $352,700 from nearly $6 million in wagers, showing a 23.7% improvement over last year.

Year-to-Date Figures Reflect Consistent Growth

The overall market performance for the year has been strong, with $7.3 million in tax receipts collected through the first nine months of 2024, surpassing the same period in 2023 by $1.1 million.

Both revenue and handle have more than doubled during this period. Total revenue has grown by 155.8%, reaching $34 million, while the total handle has increased by 116.1% to $261.4 million.

With a combined hold rate of 13% across all operators for 2024, the market is performing at a higher level than the previous year, further solidifying the District’s position as a growing hub for sports betting in the U.S.