DC Council Approves Expansion of Sports Betting Market
The Council of the District of Columbia has made a move towards expanding the sports betting market by including the Sports Wagering Amendment Act of 2024 in the FY2025 budget.
This decision has potential to start a transformation of the betting landscape in the city, allowing for greater competition and potentially increased revenue.
Unanimous Approval and Future Steps
The budget, which includes provisions for expanding sports betting, received unanimous approval from the council. A second vote is anticipated soon, which could finalize the budget by mid-July. This legislative move has stirred substantial debate among council members and stakeholders.
The decision to open the market was not without contention. An amendment to remove the new sports betting plan was defeated 4-9, following a heated debate. Concerns primarily revolved around the speed of the change and its potential impact on small businesses currently benefiting from wagering kiosks.
Current Market Structure
Currently, the Office of Lottery and Gaming (OLG) holds a monopoly on online wagering. FanDuel, through a subcontract with Intralot, is the sole operator offering digital betting across the District. BetMGM and Caesars Sportsbook have restricted digital betting within a specific exclusion zone around their retail locations.
If the budget passes, it will become effective on July 15. This will allow BetMGM and Caesars Sportsbook to offer their platforms citywide, and open the market for new operators to apply for DC sports betting licenses. Additionally, the proposal introduces Type C licenses, potentially increasing market diversity.
Council member Kenyan McDuffie, who authored the amendment, emphasized that the economic development committee had conducted extensive hearings on wagering, despite resistance from the OLG. Previous considerations of the issue occurred in 2019 and 2022, debunking claims of a rushed process.
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