Washington D.C.'s Sports Betting Market Faces Uncertainty as Budget Delays Stall New Launches

The much-anticipated launch of BetMGM and Caesars Sportsbook in Washington D.C. has encountered unexpected delays, as revealed in a recent article by The Washington Post. The situation remains unresolved as of early Wednesday morning, July 17, 2024, with both platforms still restricted to their respective brick-and-mortar locations.

Background and Current Status

FanDuel, the only online platform offering citywide sports gambling in D.C., halted its operations on Tuesday due to Mayor Muriel E. Bowser (D) not signing the city’s budget for the 2025 fiscal year. This budget includes provisions for the continuation and expansion of sports betting in the city. In a statement to The Washington Post, FanDuel announced it would resume operations "upon final approval of the FY2025 DC Budget".

On Tuesday afternoon, Mayor Bowser returned the budget to the D.C. Council without her signature or a veto, allowing the sports gambling provisions to take effect immediately. Despite this, FanDuel had not resumed its online operations by Tuesday evening, leaving its status in limbo.

BetMGM and Caesars Sportsbook

BetMGM had planned an event to celebrate its district-wide launch, but this was canceled, and the initiative is now "in a pause." Similarly, Caesars Sportsbook was set to go live citywide but remains limited to operations around Capital One Arena.

FanDuel’s brick-and-mortar sportsbook at Audi Field continues to accept wagers, even though its online operations are paused. BetMGM and Caesars have not provided a timeline for when their citywide mobile betting services will commence.

Legislative and Market Implications

The delays are partly due to FanDuel's contractual dynamics with Intralot, the Greek company managing the D.C. Lottery. Intralot’s involvement in D.C.'s sports betting has been contentious, following the failure of GambetDC, the city's first attempt at a mobile sports betting app. The new budget allows for up to seven licenses for sports betting, potentially including operators like DraftKings.

Kenyan R. McDuffie, a D.C. Council member, criticized the Office of Lottery and Gaming for prematurely releasing Intralot from its responsibilities, adding to the confusion. The Mayor's review of the budget is expected to resolve these issues soon.

As of early Wednesday morning, July 17, 2024, the situation remains unchanged, with bettors eagerly awaiting the full implementation of citywide mobile sports betting services from BetMGM, Caesars, and other potential operators.

Stay tuned for further updates as the D.C. sports betting landscape continues to evolve.