FanDuel Replaces GamebetDC as Sole Washington DC Sportsbook Provider
LISTEN TO THIS ARTICLE:The Office of Lottery and Gaming (OLG) for Washington DC has announced that FanDuel will replace GambetDC as the sole sports betting operator in the district. This change is expected to happen in the spring of this year, although the final details of the transition have yet to be finalized.
This move is not a surprise as there has been open talk from within the OLG concerning the performance of the GambetDC sportsbook and the desire by some of the leadership team to bring in one of the major sportsbook companies in the industry, with FanDuel the preferred operator.
FanDuel boasts it estimates that it can achieve revenue of up to $119 million or thirty times the current sportsbook offering generates.
FanDuel’s industry-leading offering will ensure that the district maximizes tax revenue under its existing contracts this year while delivering a best-in-class experience.
The GambetDC sports book offering was launched in 2020 by Intralot, a Greek gaming company that also runs the lottery service in Washington DC. The GambetDC platform was not well received by customers who complained of poor odds and many errors in the sportsbook app.
The GambetDC platform has also failed to deliver revenues that all stakeholders in the district had expected. It had projected a revenue figure of more than $80 million generated to the city, the actual amount delivered was $4.3 million over the four years it was in operation.
Related: Washington DC’s December Betting Handle Shows Decline
FanDuel Guarantees $45 million
Under the terms of the new agreement, FanDuel outlined that its sportsbook in the Washington DC region would guarantee a revenue of $45 million, which is broken down by an initial payment of $5 million and further payments of $10 million a year over the next four years.
Additionally, the OLG has listed several benefits that switching to the FanDuel sportsbook will have. These include Intralot will absorb the costs of the GambetDC platform and FanDuel will replace the current betting terminals in a phased transition.
The Certified Business Enterprises (CBE), which are often minority-owned businesses, will continue to receive revenue from the sportsbook platform. It is believed this revenue could double if the projected revenues forecast by FanDuel come to fruition.
FanDuel's market-leading platform will be available starting this spring. Through this partnership, FanDuel will provide DC residents with a sports betting experience that prioritizes a secure customer experience and a superior product offering. This move allows the district to increase revenue from sports betting. Under the partnership, FanDuel guarantees it will provide the district with a minimum of $45 million total. However, FanDuel's projected revenue to the district in its first five years is $119 million, nearly 30 times more than the revenue generated under the current model.
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