D.C. Council Approves Major Change to Sports Betting Rules

The Washington Council unanimously approved the final reading of the draft budget bill, which, among other things, Key changes to mobile sports betting in the District. That decision, made Tuesday, now awaits Mayor Muriel Bowser’s signature. Once approved, the bill will be subject to a 30-day review period by Congress, potentially speeding up implementation of these changes.

The newly adopted regulations propose significant modifications to the existing sports betting landscape. Since April, FanDuel has been the exclusive operator throughout the district, replacing Intralot’s GambetDC. However, FanDuel has not issued any public comments regarding the Board’s recent decision. However, last week the company clearly stated that it would consider terminating the current contract if the budget is approved.

A key amendment to new sports betting regulations approved earlier this month allows for seven professional sports teams based in Washington, D.C. cooperates with various bookmaker operators. This move could introduce to seven different mobile bookmakers District-wide, a significant increase from the single option previously available through the D.C. Lottery.

These sportsbooks can begin operating shortly after the budget is finally approved. To qualify, operators must do the following:

• Provide proof of affiliation with one of DC’s seven professional sports teams.
• Be licensed and operating in at least five U.S. jurisdictions.
• Pay an application fee of $2 million for a five-year license.

Important correction

In addition to these changes, the amendment introduced by Councilmember Kenyan McDuffie on sports betting kiosks was also approved. This change is intended to ensure the continued operation of kiosks under the current agreement with FanDuel/Intralot. In the event of a service disruption, other licensed DC sportsbook operators will be able to manage kiosks for local retailers.

McDuffie described this amendment as security to support small businesses that depend on retail sports betting kiosks. The Council adopted this amendment by 10 votes to 1, with one member present. This provision is intended to address concerns among some Council members about the impact of a more competitive online sports betting market on small businesses.

Council member Zachary Parker, who voted against the amendment, expressed his disapproval of including a new sports betting model in the budget bill instead of submitting it to the traditional legislative process. “All of this is unnecessary because we could do it outside of budget,” Parker said, according to SportsHandle.

Despite Parker’s reservations about the process, the D.C. Council is moving toward a more competitive online sports betting environment. Industry sources cited by Legal Sports Report indicated that fanatics played a significant role in advocating for market opening.

Brandt IdenVice President of Government Affairs at Fanatics, expressed enthusiasm for the Council’s decision. “Today is a great day for DC residents who want to have choice when choosing sports bets,” Iden noted. “For years, this market has been held together by thread and some putty. It was one of the worst performing markets in the country and will now be the first to transition from a single internet operator to a competitive market. Thanks to Councilor McDuffie, DC will become a leader for other single-source closed markets.”

DraftKings also praised McDuffie and Chairman Phil Mendelson via Twitter, stating, “We look forward to potentially introducing our mobile sports betting product to DC sports fans.”

As the budget bill moves through its final approval stage, Washington is on the verge of transforming its sports betting market, offering residents more choice and fostering a competitive environment. This means development significant change from a previously limited betting landscape, promising a better experience for sports betting enthusiasts in the District.