Troubled DC sports betting app GambetDC loses $4m in 2021
Washington DC Lottery revises 2022 projections after Intralot-powered app underperforms expectations
GambetDC, the sole mobile sports betting app available throughout the District of Columbia, finished 2021 approximately $4m in the red, according to documents submitted to the DC Council by Washington DC Lottery officials.
The Intralot-powered app, which has been plagued by tech and pricing issues since its launch in 2020, was originally projected to generate north of $6m in revenue in 2021 before ultimately registering a $4m loss for the year.
That stands in stark contrast to competing apps such as BetMGM and Caesars, which have eclipsed revenue expectations despite only being available within a two-block radius of the sports venues – Nationals Park and Capital One Arena, respectively – to which they’re tethered.
DC Lottery officials attributed the missed target to marketing costs, adding the original revenue projections for GambetDC – $6.2m in 2021 and as much as $20m in 2022 – were overinflated on account of “very limited data”. Revised estimates have GambetDC bringing in a little under $1.5m in 2022.
In a move that was derided by most industry experts, Intralot was awarded a district-wide monopoly on mobile sports betting by the DC Council in 2019 following a $215m no-bid contract.
From the outset, the app was criticized for issues ranging from poor pricing to unreliable tech and substandard UX/UI, culminating in an outage during this year’s Super Bowl in which iPhone users were unable to access it at all due to an update glitch.
DC Lottery director Frank Suarez said the Lottery is currently negotiating with Intralot to receive compensation for what he deemed a “colossal error” on Super Bowl Sunday.
Despite all the setbacks, Suarez remains confident about the prospects for the app going forward.
“The model is a good one,” said Suarez. “Right now, compared to some of the other models, it’s set up to give you the most return on revenue. The way the model is structured is solid and it helps the District… drive local business and the economy.
“We have to be very realistic about the expectations of the revenue. We know a lot more now than we used to,” he added.