DC Council Approves FY2025 Budget to Expand Digital Sports Betting

26.06.2024

On June 25, the DC Council approved the FY2025 budget, which includes provisions to open up the digital sports betting market.

The new legislation will take effect on July 15, allowing for more commercial operators to enter the market, thereby ending FanDuel’s current monopoly.

Expanding Operator Participation

Currently, FanDuel is the only platform available citywide for digital sports betting. However, the new budget will permit other operators such as BetMGM and Caesars Sportsbook to extend their digital offerings across Washington, DC.

These operators already have physical sportsbooks at Nationals Park and Capital One Arena and will now be able to expand their services beyond these locations.

To ensure the budget’s immediate implementation, the DC Council passed the Budget Support Act via a voice vote as an emergency measure, avoiding the need for congressional approval. This act allows the new digital sports betting provisions to take effect without delay.

Tax Rate Adjustments

The new plan also introduces a change in tax rates for digital sports betting operators. Under the existing agreement, FanDuel pays a 40% tax rate in exchange for its monopoly.

The new legislation will reduce this tax rate to 20% for all operators, making the market more attractive for new entrants.

FanDuel, which operates under a partnership with the DC Lottery, has indicated that it may abandon this deal if the market is opened to competition. This was conveyed by FanDuel president Christian Genetski in a letter to the DC Council. The company had recently replaced the DC Lottery’s underperforming GamBetDC platform through a subcontracting arrangement with Intralot.