Washington D.C. Sets New Record with $40.6 Million in August Sports Bets

Washington, D.C. reached a significant milestone in its sports betting market, with a record $40.6 million in wagers placed in August 2024. This achievement, reported by the D.C. Lottery and the Office of Lottery and Gaming (OLG), marks a new high for the district, suring the previous record of $35.4 million set in May, when FanDuel first fully entered the market as the district’s official sportsbook partner.

FanDuel Dominates D.C. Betting Market

In August, the combined gross revenue from sports betting reached $4.5 million, which fell just short of May’s $5.4 million. FanDuel, which transitioned to a Class A license in July via a partnership with Audi Field, home to MLS team DC United, dominated the betting market. The Flutter Entertainment-owned brand handled $21.7 million of the total bets, making up more than half of the district’s activity for the month. FanDuel also posted a gross gaming revenue (GGR) of nearly $2.8 million, with an impressive hold rate of 12.7%.

FanDuel’s strong performance in August can be attributed to its strategic positioning in D.C.’s evolving sports betting market. By partnering with Audi Field, it not only has a significant retail presence but also reaps the benefits of being a major online betting operator in the region.

August was a crucial month for several other sportsbooks, including DraftKings, Caesars, and BetMGM. DraftKings, a Class C licensee, made its presence known with $7.4 million in wagers during its first full month in the district. Although DraftKings operates without a retail location in Washington., its digital platform proved popular, generating $875,200 in winnings.

Caesars and BetMGM, which both operate under Class A licenses, also contributed to the district’s betting handle. Caesars reported a year-best $5.4 million in wagers, but lower win rates kept its revenue at just $321,900. Meanwhile, BetMGM saw $5.2 million in bets and collected $450,600 in revenue.

Both sportsbooks benefit from the ability to offer mobile betting within a two-mile radius of their respective retail locations—Capital One Arena for Caesars and Nationals Park for BetMGM.

The competitive nature of the district’s market has been further heightened by these new entrants. Since July, the market has seen substantial growth with the addition of multiple operators, including DraftKings, which launched its platform on July 26. FanDuel, Caesars and BetMGM have been operational district-wide since mid-July, boosting the overall betting volume in the area.

D.C.’s Tax Contributions from Sports Betting

The district’s varied tax rates for sportsbooks resulted in $1.1 million in tax receipts for August. This is a notable sum, especially when compared to May, when FanDuel paid 40% in taxes as the sole D.C.-wide operator. Now, as one of several Class A licensees, FanDuel pays a reduced 20% tax rate. DraftKings, operating as a Class C licensee, is taxed at 10%, contributing to the overall revenue collected by the district.

D.C.’s year-to-date sports betting handle now exceeds $200 million, representing a 91% increase from the same time last year. In the first eight months of 2024, the district has collected $25.9 million in revenue, more than double the revenue generated in 2023. This sharp rise is a result of the expanded market, which, until recently, was limited to a single operator—GambetDC, a platform run by Intralot through a subcontract with the OLG.

The transformation of Washington D.C.’s sports betting market has continued at a rapid pace. Even since July, when operators like Caesars, BetMGM, and DraftKings were able to offer district-wide wagers for the first time, the landscape has continued to evolve.

Last week, Caesars gained a new advantage by securing exclusive rights to provide self-service betting kiosks to 53 businesses in D.C., replacing GambetDC’s previous operations. This development is expected to further increase Caesars’ market share and visibility in the district.

Additionally, next month’s revenue reports will feature a new player—Fanatics Sportsbook. The platform recently went live in D.C. through a partnership with the Washington Spirit, the city’s National Women’s Soccer League (NWSL) team, making Fanatics the team’s official sports betting partner. The company, which already operates a sportsbook inside Commanders Field in nearby Maryland, has now expanded its online betting platform to D.C., marking its presence in 23 U.S. jurisdictions.

FanDuel’s Early Monopoly Boosts Its Position

FanDuel’s dominance in the market is largely due to its three-month monopoly as the only district-wide betting operator before the market opened to other players in mid-July. During that period, FanDuel processed $78.5 million in bets. This early lead provided the sportsbook with a significant edge over its competitors.

In July, FanDuel’s handle was nearly three times that of DraftKings, which took in $7.4 million. Caesars handled $5.4 million in wagers, while BetMGM took $5.2 million. These figures include both retail and digital betting, as the OLG does not differentiate between the two in its revenue reports.

FanDuel’s success continued into August, with its $2.8 million GGR outpacing its competitors. DraftKings followed with $875,000, BetMGM with $450,588, and Caesars with $321,877. FanDuel and DraftKings also had higher hold rates than their legacy casino counterparts, with 12.7% and 11.82%, respectively. BetMGM and Caesars had lower hold rates of 8.73% and 5.96%.

As the district’s sports betting market continues to expand, it is expected that competition between the leading sportsbooks will only intensify.

Source:

”FanDuel dominated Washington, DC wagering in August”, igamingbusiness.com, September 17, 2024.