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Washington DC Sports Betting And Lottery Set To Be Taken Over By FanDuel

James Chittick

FanDuel is set to take over both Washington D.C. sports betting and the district’s lottery.

The district’s Office of Lottery and Gaming (OLG) announced that FanDuel will be the new sports wagering subcontractor of Intralot, the OLG’s lottery and sports wagering system vendor.

This news comes after continued arguments between the OLG and D.C City Council due to poor performance by Intralot and its GamebetDC sportsbook.

In a January meeting between the lottery and council, the D.C Council Committee on Business and Economic Development (CBED) Chair Kenyan McDuffie summarised the situation.

He said: “I’ve heard from many residents about their unease with the district’s woeful performance on sports betting. And I absolutely share those same sentiments, from issues around usability, customer service, and seriously declining revenue. We know the current model simply is not working.”

OLG chairman Frank Suarez suggested in the same meeting that Intralot was looking to bring in a subcontractor, which is where FanDuel enters the conversation.

FanDuel will soon be active for bettors in the District of Colombia to place bets. They can use FanDuel’s sports wagering app as well as its website and retail platforms.

Suarez said: “FanDuel’s industry-leading offering will ensure that the District maximizes tax revenue under its existing contracts this year while delivering a best-in-class experience for 18+ residents.”

Washington D.C. Sports Betting Will Benefit Local Economy

DC Lottery has claimed this new partnership will bring an immediate financial benefit. Intralot will need to pay an initial $5 million fee within the first fiscal year.

On top of this, Intralot will also assume OLG’s current operating costs. This will help to increase sports wagering revenue, which will go directly to the district’s general fund and help finance critical programs.

The FanDuel platform will be available to residents and visitors to Washington D.C. this spring. Furthermore, FanDuel’s in-store gaming kiosks will gradually replace those of GamebetDC.

Intralot’s Poor Performance Creates Tension

Despite this new deal, there have still been rising tensions over Intralot’s continued poor performance.

Washington D.C has an unusual model. The lottery is solely in charge of offering online betting, which it uses Intralot and GamebetDC to do.

But many in the district have criticised Intralot’s performance, as well as that of its GamebetDC Sportsbook.

A major complain was the bad prices offered to bettors. Suarez admitted the lottery believed bettors offered a -120 line would be casual and not worried about what their potential payout was.

Intralot’s lottery contract expires in July 2024. Suarez faced questions in January’s meeting about why the OLG is continuing with Intralot given a subcontractor will now run the sports betting market in D.C.

But Suarez explained that the process of opening the contract to new proposals could take up to a year. Instead, by allowing Intralot to subcontract, the change can be implemented in time for March madness, which starts on March 17.

James Chittick
James Chittick