FanDuel In, GambetDC Out of Washington, D.C.

The Office of Lottery and Gaming announced that FanDuel is coming to Washington, D.C.FanDuel will be replacing GambetDC as the District’s lone sports betting operatorFanDuel will launch in the spring

FanDuel is in, GambetDC is out.

The Office of Lottery and Gaming (OLG) today announced it has reached a deal with FanDuel to be Washington, D.C.,’s lone sports betting operator, taking over for the troubled and much-maligned GambetDC.

FanDuel will officially be the new sports betting subcontractor for Intralot, Inc., OLG’s lottery and sports betting system vendor. FanDuel is scheduled to launch sometime in the spring.

FanDuel Aims to Increase Revenue

Under the agreement, Washington, D.C. sports betting customers will gain access to FanDuel’s sports betting app, as well as its website and retail platforms.

“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 for 18+ residents,” said Frank Suarez, Executive Director of OLG.

According to a FanDuel statement, the sports betting company guarantees the District it will provide a minimum of $5 million in tax revenue for the upcoming contract year, July 2024 through July 2025. Every year thereafter the operator guarantees at least $10 million per year for the following four contract years, for a guaranteed total of $45 million in revenue over its first five years of operation in the District.

However, FanDuel’s own projections estimate more than $119 million for the District in tax revenue for its first five years.

As part of the deal, GambetDC’s existing in-store sports betting kiosks will be replaced by FanDuel’s on a phased basis. FanDuel will also assume $2 million to $4 million in annual sports betting operating expenses, including payment process, promotions, marketing, and retailer commissions and payouts.

GambetDC Frustrated Many in D.C.

GambetDC, the lone sports betting operator in the District, missed numerous financial goals and lost more than $4 million for D.C. in 2021. Powered by Intralot, D.C. officials approved the sole-source, no-bid, five-year contract for $215 million in 2019.

The app was criticized by customers and routinely missed financial goals since launching in May 2020.

Intralot predicted millions in revenue for Washington, D.C., but the returns have been much less so. Here are the following fiscal year revenue postings for GambetDC:

2019: $02020: $352,0002021: ($4 million)2022: $2.7 million

Original Intralot projections estimated more than $20 million annually.

As part of the new deal with FanDuel, Intralot will pay the OLG a $5 million fee within the current fiscal year. The initial fee along guarantees a significant revenue increase from sports betting for the District in 2024.