In an exclusive report by iGB, it has been revealed that FanDuel will soon replace GambetDC as the District of Columbia’s sole sportsbook platform. This information comes from a letter issued by the Office of Lottery and Gaming (OLG) to the D.C. City Council.
Although the letter does not specify the exact launch date for FanDuel’s platform across the city, it confirms that the OLG has approved Intralot’s request to select FanDuel as a new subcontractor for the lottery’s sports wagering platform.
GambetDC, operated by Intralot under a contract with the District of Columbia, has faced challenges in providing a competitive product. In 2021 alone, the platform incurred a loss of $4 million.
According to the letter from OLG executive director Frank Suarez, the evaluation of the current platform led to the belief that FanDuel and its industry-leading platform would perform better in the highly competitive DMV region. The adoption of FanDuel’s national, market-leading platform is expected to enhance the player experience and drive significant revenue growth.
Once FanDuel takes over, the OLG will no longer be responsible for operating expenses, which previously amounted to $2 million to $4 million annually. FanDuel will handle payment processing, promotions, marketing, and retailer commissions.
As part of the agreement, FanDuel will pay the OLG a $5 million platform conversion fee within 37 days of signing a contract with Intralot. If the OLG extends its contract with Intralot, the city will receive a guaranteed $10 million in revenue over four years, starting in July 2025.
Currently, GambetDC is accessible through a digital platform and kiosks at lottery retailers. However, FanDuel’s platform will replace GambetDC, and the kiosks at 63 lottery retailers will be replaced with FanDuel equipment.
This new contract will make FanDuel available across the DMV (District of Columbia, Maryland, and Virginia). FanDuel already holds approximately 50% market share in Maryland and Virginia and has market access in the District through a partnership with the DC United Soccer team. FanDuel also operates a retail sportsbook at Audi Field.
It’s worth noting that in D.C., operators are only permitted to offer their digital platforms within a limited zone around their retail partner’s location. For example, BetMGM’s platform is available around Nationals Field, their partner, but geofenced from the rest of the city.
Intralot and GambetDC have faced scrutiny in the past year as the D.C. City Council explored options to increase revenue and considered whether Intralot should be replaced. Intralot initially obtained the contract with the OLG without a competitive bid process, and by subcontracting to FanDuel, they once again avoided a competitive bidding process.
Since its launch in May 2020, GambetDC has contributed $8.5 million in taxes to the District.