Washington D.C. Council approves FY2025 budget, paving way for competitive online sports betting

The Washington D.C. Council unanimously approved its FY2025 budget on Tuesday, setting the stage for a competitive online sports betting market in the District.

The budget, which required an emergency act to bypass congressional approval, includes the Sports Wagering Amendment Act of 2024 proposed by Council member Kenyan McDuffie. It is scheduled to go into effect on July 15, pending official approval from the mayor.

Currently, online sports betting in the district is only allowed through a FanDuel partnership with the D.C. Lottery, after the betting giant replaced GambetDC recently with permission from Lottery partner Intralot.

The bill would allow up to seven professional sports franchises and teams to partner with sportsbooks and create a new “Type C” license, ending FanDuel's monopoly. This change will enable BetMGM and Caesars Sportsbook, with retail books in Nationals Park and Capital One Arena respectively, to expand their digital offerings across the District.

On the financial side, the new bill would increase the tax rate for retail sportsbooks from 10% to 20% and reinstate funding for problem and responsible gaming initiatives. Additionally, it would tax Type-C license holders at a rate of 30% of gross gaming revenue. A Type-C license would cost $2 million to acquire for five years and a $1 million renewal fee after that.

FanDuel president Christian Genetski recently warned D.C. City Council Chairman Phil Mendelson that the company may end its partnership with the city to operate its sports betting platform. This warning came in a letter sent before lawmakers approved a 2025 budget.

McDuffie's amendment to the budget ensures that small businesses with sports betting kiosks will not be left behind. These kiosks, currently transitioning from GambetDC to FanDuel, will continue to be supported under the new plan. The amendment mandates that operators must provide kiosks to interested businesses, maintaining the current partnership model.

The amendment, which passed with a 10-1 vote, aims to alleviate concerns that a competitive online sports betting market could negatively impact small businesses. Council member Zachary Parker voted against the amendment, expressing disapproval of the new sports betting model being implemented through the budget rather than a traditional bill approval process.