FanDuel Temporarily Goes Dark in DC as Bowser Has Yet to Sign Budget

Posted on: July 16, 2024, 10:17h. 

Last updated on: July 17, 2024, 10:35h.

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

Washington, DC is currently without mobile sports wagering because Mayor Muriel Bowser (D) has yet to sign the fiscal 2025 budget.

DC sports betting taxes Mayor Muriel Bowser
Washington, DC Mayor Muriel Bowser hasn’t signed the city’s fiscal 2025 budget and FanDuel temporarily went dark, leaving the city without a mobile sports betting app. (Image: AP)

It was believed Bowser would sign the new budget into law on Monday, ushering in a new era of mobile sports wagering in the nation’s capital in which the market would expand beyond a mobile betting monopoly briefly held by FanDuel. Last week, BetMGM announced plans to launch mobile betting in the District on July 15, and it was reported that Caesars Sportsbook would join that party. Those operators didn’t debut in the city and on Tuesday, FanDuel went dark there because Bowser sent the budget back to the City Council, balking at proposed tax hikes.

I cannot support a budget that needlessly increases our residents’ property and income taxes, raises the paid family leave tax to untested levels, or harms our public schools,” wrote Bowser in a letter to Council Chairman Phil Mendelson Tuesday.

The mayor hasn’t officially vetoed the budget and even if she doesn’t sign it, the measure would automatically go into effect on July 25. After that, Congress would have a month to review it and if it doesn’t pass muster there, Bowser and the Council would have to go back to the drawing board.

FanDuel Shows Some Commitment to DC

In late June, the Council added an amendment to the fiscal 2025 budget proposed by Council member Kenyan McDuffie (I-At Large) to expand DC’s mobile sports wagering market. The amendment paves the way for up to seven gaming companies to hold sports betting permits in the District.

Much to the chagrin of FanDuel, a unit of Flutter Entertainment (NYSE: FLUT), that could end the operator’s briefly held monopoly, which went into effect in April when Intralot halted the disappointing GambetDC app, outsourcing its responsibilities to FanDuel.

In the brief time since that transition, FanDuel has delivered gross gaming revenue (GGR) and handle well in excess of the pace set by GambetDC, thus delivering more tax receipts to the city. In the face of the budget hiccup, FanDuel reiterated its commitment to the District.

“FanDuel remains committed to providing the District and its residents with a best-in-class sports betting offering. Upon final approval of the FY2025 DC Budget, FanDuel will resume its sports betting offering as a Class A operator in partnership with DC United at Audi Field and continue to offer our citywide mobile app to the District of Columbia,” said the gaming company in a statement distributed to press outlets.

Not the Worst Time for DC Sports Betting Outage

Assuming the budget situation is quickly rectified, this isn’t the worst time for DC to be without a mobile sports betting option. Major League Baseball started its all-star break on Monday, and that runs through Thursday. There are no other major team sports currently in season.

On the other hand, there’s arguably never a good team for operators and cash-starved cities to go without mobile sports betting apps. The Open Championship commences Thursday and with WNBA wagering increasing, it behooves the City Council to fix the budget and for Bowser to sign it.

The proposed budget calls for $21 billion in spending in 2025.