FanDuel resumes online sports betting in D.C. after temporary halt, budget approval delays

FanDuel, the sole online platform offering citywide sports betting in Washington, D.C., is back up and running after temporarily halting its operations on Tuesday. The suspension came in response to a delay in the signing of the city’s budget for the 2025 fiscal year by Mayor Muriel E. Bowser, which includes provisions for the continuation of sports betting in the city.

FanDuel issued a statement to The Washington Post on Tuesday that indicated the company would resume operations “upon final approval of the FY2025 DC Budget.” However, while Bowser sent the District's FY 2025 budget back to the D.C. council without a signature, FanDuel resumed operations Wednesday morning.

The Mayor's action still allows sports betting provisions to take effect immediately. The decision to return the budget unsigned will still permit it to pass into law, serving more as a demonstration of the Mayor’s objections to several elements. Sports betting in DC can move forward as detailed in the budget.

The DC Council approved the FY 2025 budget, effective from July 15. In January 2019, the DC Council initially approved a single-provider digital market without a competitive bidding process, extending the contract of lottery vendor Intralot to include sports wagering. 

However, Intralot's GamBetDC platform faced extensive criticism for its limited betting markets, poor functionality, and uncompetitive odds compared to neighboring states. The platform failed to generate the promised revenue, leading to widespread dissatisfaction.

In response to these issues, the lottery announced in April that GamBetDC would be discontinued following a new contract with FanDuel. In its first month, FanDuel's operations in D.C. saw a 450% increase in handle compared to GamBetDC, generating $4.9 million in revenue in May 2023, an increase from GamBetDC’s $711,282. The city benefits from these operations, receiving 40% of the revenue from any lottery-backed wagering partner.

One of the major changes introduced in the new budget is the removal of the cap on the number of operators, replacing the previous single-provider system. This allows FanDuel to operate independently rather than as an Intralot subcontractor, reducing its revenue-sharing requirement with the city from 40% to the standard 20% tax rate applied to other operators.

The amended legislation introduces a new Type C license, allowing operators to partner with franchises instead of being tied to specific venues. Operators such as DraftKings and Fanatics have shown interest in entering the D.C. market under this new framework.

Type C licenses are priced at $2 million with an annual renewal fee of $1 million, valid for five years, and subjected to a 30% tax rate. This new licensing structure aims to foster a competitive market, providing consumers with more options and potentially improving the quality of services available.

FanDuel wasn't the only sports betting operator affected by the budget delays. BetMGM and Caesars Sportsbook, which run retail operations at Nationals Park and Capital One Arena respectively, planned to launch District-wide on Monday, benefitting from the rule changes.