Caesars and BetMGM could end FanDuel’s brief mobile sports betting monopoly in DC

Article by : Charles Perrin Jul 15, 2024

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BetMGM and Caesars are ready to make a bigger splash in Washington DC after being granted access to expand their operations.

The floodgates have been opened to bolster the district’s mobile sports betting market, with BetMGM and Caesars poised to roll out their apps next week.

BetMGM has confirmed that it will hold a celebration at Nationals Park when it launches its new app on Monday at noon ET, while Caesars has also announced its app will go live on the same day. Both companies’ launches will be subject to successful final test runs.

Since April, FanDuel has facilitated online and mobile wagers in DC after taking over from GambetDC to enable Intralot to outsource its responsibilities.

The city’s move to expand the number of mobile operators from one to three has been swift. Indeed, just a couple of weeks ago, the City Council made an amendment to the fiscal 2025 budget put forward by councilmember Kenyan McDuffie to expand DC’s mobile sports betting market.

The decision to offer more mobile sports betting operators came after BetMGM, Caesars, DraftKings, and Fanatics lobbied the council in May to be more amenable to the prospect of making the mobile sports betting market more competitive.

Were DraftKings and Fanatics to join BetMGM and Caesars in rolling out mobile operations, they would have to partner with a professional sports franchise.

However, FanDuel is unlikely to be happy with the outcome, and they have already threatened to scrap its agreement with the city if the mobile sports betting market permits more entrants.

Last month, FanDuel President Christian Genetski sent a letter to councilmembers, which read: “Should Subtitle R be enacted, FanDuel will transition its operations in the District under its Class A license under the new regime consistent with its pre-existing contractual relationship, and invoke its termination right under the subcontract.”

Currently, Elizabeths East Entertainment and Sports Arena is the only venue that doesn’t already have a sports betting partner, and the D.C. Lottery’s website can allocate four Class A operator licenses.

Moreover, FanDuel’s branding is on the devices of the 60 sports betting kiosks throughout the District, and they are fearful about the impact it would have on retail businesses.

While this is a bold new era for Washington DC, it remains to be seen whether FanDuel follows through with its threat or begrudgingly accepts the state of play.