FanDuel Off to Fast Start in Washington, DC

Posted on: May 22, 2024, 02:34h. 

Last updated on: May 22, 2024, 02:39h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

In its first month as the lone mobile sports wagering operator in Washington, DC, FanDuel validated the District’s decision to convert to that platform from GambetDC.

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The FanDuel Sportsbook logo. The operator generated a handle of $30 million in its first month in Washington, DC. (Image: FanDuel Sportsbook)

During its first 30 days of operation in the US capital city, FanDuel’s mobile app and website generated a handle of $30 million and $5 million in gross gaming revenue (GGR) — figures representing 673% and 887% year-over-year increases, respectively. The transition is also paying dividends in terms of elevated receipts to government coffers.

The successful conversion to FanDuel gives the District a 40% share of GGR, equating to an estimated $1.90 million in revenue for the District gained in the initial 30 days of operation, an increase of 690% over the same period last fiscal year,” according to a statement issued by the DC Office of Lottery and Gaming (OLG).

Greek gaming company Intralot still has the sports wagering contract with DC, but after several years of lagging performance by the GambetDC app, the city council allowed Intralot to subcontract its responsibilities out to FanDuel. FanDuel is a unit of Dublin-based Flutter Entertainment (NYSE: FLUT). OLG noted that bettors who still have funds in a GambetDC account have until October 15 to withdraw that cash.

More Upside Could Be in Store for DC with FanDuel

Making FanDuel’s fast start in Washington, DC all the more impressive is that the launch occurred far removed from football season and with the Washington Capitals being quickly vanquished in the first round of the NHL playoffs. The NBA’s Wizards didn’t make the post-season.

That implies that when football season rolls around, the benefits accrued to DC by converting to FanDuel will increase because the city is home to an NFL franchise and football is the most wagered-on sport in the US. Extrapolating FanDuel’s first 30 days of performance in the District, it appears as though football season could be a boon in terms of elevated handle, GGR, and sports betting tax receipts.

“From September 2023 through February 2024, the District’s per capita sports wagering revenue (tax and GambetDC revenue) was $2.71. Based on FanDuel’s first 30 days of operation, it is likely that the District’s per capita sports wagering revenue may rise to over $19, placing it among the highest revenue generating markets in the country on a per capita basis,” added the OLG.

FanDuel guaranteed $5 million in revenue to the city in its first year of operation. Accounting for the gaming company’s impressive start, that estimate could prove conservative.

Other Sportsbook Operators Eyeing Washington, DC

FanDuel’s rapid success in the US capitol is unlikely to be lost on rival sportsbook operators that want the city to broaden the field of mobile sports wagering offerings.

Earlier this month, representatives from BetMGM, Caesars Sportsbook, DraftKings, and Fanatics Betting & Gaming testified before the Washington, DC City Council’s Committee Business and Economic Development Committee to advocate for a more competitive mobile sports betting landscape in the city.

Council member Kenyan McDuffie (I-At Large) introduced the Sports Wagering Amendment Act of 2024, which would do just that, but it’s not yet clear how much momentum there is for that legislation.