DC legislators slam “dud” market and table new sports betting reform bill
Proposed legislation to end GambetDC dominance in the district allowing for multiple sportsbook apps
Councilmembers in Washington DC have tabled legislation that would “reboot” The District’s underperforming sports betting market by widening access to external sportsbook apps.
The bill, entitled the ‘Sports Wagering and Fair Competition Amendment Act of 2022’ was authored by DC Councilmember Elissa Silverman and co-sponsored by fellow D.C. councillors Brooke Pinto, Charles Allen and Mary Cheh.
It allows for wider licensing of sportsbook operators and apps including DraftKings and FanDuel, with licenses running for five years at a cost of $1m per application and $500k for renewals.
Operators entering the district under the legislation would be liable to pay a tax rate of 15%, the same rate as that in neighboring Virginia and Maryland.
Mobile sports betting became legal in Virginia in 2021, while Maryland is set to potentially kick off its own journey into regulated sports betting later this year.
At present, the Intralot-powered GambetDC app is the only sportsbook app allowed in the DC area, however, the app has endured a torrid time since its launch in 2020, being plagued by tech and pricing issues.
It was originally projected to generate north of $6m in revenue in 2021 before ultimately registering a $4m loss for the year, drawing consternation from councilmembers including Silverman, who voted against the initial contract award and slammed the app as “embarrassing” in July.
“The District’s sports betting program was supposed to be a bonanza, contributing approximately $25m per year for the District’s budget. Instead, it has been dud — actually losing $4m in its first full year of operations,” advocates for the bill said in a statement accompanying the bill.
The legislation, if passed, would see the contract for the Gambet app signed by Intralot be terminated when it expires in 2024, instead of allowing it to renew. The contract is worth an estimated $215m and exists on a sole-source (exclusive) basis.
The contract to run the DC lottery system and sports betting operations would then be sent to a competitive bidding process, with bidders required to “get serious” about profitability, showing how they would reasonably make money for the district.
As one of the chief critics of the Intralot contract and the GambetDC app’s performance, Silverman pulled no punches in remarking about the need to move on from its failures.
“We need to turn the page on this embarrassing episode,” Silverman said.
“Residents deserve an online app that works, taxpayers deserve a program that brings in money for the District, and we all deserve a system where we don’t hand huge contracts to a preferred company and its subcontractors without even looking at the competition.”
Silverman continued: “If we’re going to have a lottery and a sports betting program, let’s at least make it a revenue generator for the city so it can fund important efforts in public safety, public education and housing.
“And let’s stop the bad practice of awarding lucrative contracts without competition,” she added.
The legislation, if passed, would see the repeal of the ‘Sports Wagering Procurement Practices Reform Exemption Act’ of 2019, which initially paved the way for the Intralot contract to be signed.
It can only take effect once approved by the city’s Mayor, and after a 30-day congressional review period expires.
Access the full tabled bill here.
BetMGM, FanDuel and William Hill all have existing market access to the DC market with FanDuel launching its first retail sportsbook in the District earlier this year.