Washington DC: BetMGM and Caesars Sportsbook expand citywide following budget approval

BetMGM and Caesars Sportsbook have officially launched their mobile platforms citywide in Washington, DC as of Wednesday, July 17. This expansion follows the enforcement of the FY2025 budget, which transitions the market from a monopoly to a competitive landscape.

Previously, both operators were limited to offering their platforms within exclusion zones. The budget includes provisions allowing broader market access, and although the launch was delayed by two days, the operators awaited the budget's enactment. DC Mayor Muriel Bowser neither signed nor vetoed the budget, but returned it to the DC Council, facilitating the citywide launch.

BetMGM and Caesars already had market access through agreements with Nationals Park and Capital One Arena, respectively. They were previously restricted to a two-block radius around these locations. With the new budget provisions, the platforms are now available throughout the city, excluding federally restricted areas.

This expansion follows successful lobbying by D.C. councilmember Kenyan McDuffie, who pushed for legislative changes to create a more competitive sports betting market. The amendment, part of the fiscal 2025 budget, allows multiple operators to enter the market, moving away from FanDuel's monopoly and potentially generating millions in additional annual revenue for the city.

"After three years of bringing unparalleled, omnichannel experiences to sports fans and supporting the D.C. metropolitan community through our partnership with the Washington Nationals, fans can now bet on their favorite teams with BetMGM across the District with our award-winning mobile app," said Adam Greenblatt, Chief Executive Officer, BetMGM.

“D.C. sports fans have always displayed an incredible passion for their teams,” said Eric Hession, President of Caesars Digital. “Expanding access to our mobile sports betting app across the district will only enhance their fan experience, and we look forward to deepening the connection we’ve established with them since our historic opening in 2021.”

FanDuel, which took over the market from GambetDC as an Intralot subcontractor, also resumed operations on Wednesday. As the sole provider, FanDuel dominated the mobile sports betting scene in Washington D.C.

According to May 2024 figures, bets placed via FanDuel’s app surged to nearly $30 million, compared to $5.4 million through GambetDC the previous year. However, the operator has expressed dissatisfaction with the market opening and hinted at terminating its exclusive contract with the Office of Lottery and Gaming if other operators were allowed entry.

Under the new framework, FanDuel's tax rate has decreased from 40% as a monopoly to 20%, aligning it with other operators tethered to designated sports facilities.

The new regulatory framework does not limit the number of operators in the market. Other players, including DraftKings and Fanatics Sportsbook, have shown interest in entering the market. The framework also introduces a new "Type C" license for digital wagering.