FanDuel Rumored to Replace GambetDC in US Capital City

Posted on: March 10, 2024, 05:00h. 

Last updated on: March 11, 2024, 11:22h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

The widely criticized GambetDC mobile sports wagering application could be on borrowed time in the nation’s capital. That’s amid rumors that FanDuel will replace it.

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The FanDuel Sportsbook logo. The operator is rumored to be replacing GambetDC in Washington, DC. (Image: FanDuel Sportsbook)

A Friday letter was penned by Office of Lottery and Gaming (OLG) Executive Director Frank Suarez to the D.C. City Council. The note indicates that OLG approved a request by GambetDC operator Intralot to outsource those operations to FanDuel. A copy of the letter was obtained by iGB.

OLG and Intralot have evaluated the current platform and believe that FanDuel and its industry leading platform will perform better within the highly competitive DMV region,” wrote Suarez. “Having a national, market-leading platform will help to quickly improve the player experience and drive significant revenue growth.”

FanDuel, a unit of Dublin-based Flutter Entertainment (NYSE: FLUT), vies with DraftKings (NASDAQ: DKNG) as the top U.S. online sportsbook operator by market share. The company currently runs a retail sportsbook at Audi Field in the District.

Death of GambetDC Widely Forecast

OLG’s accord with Intralot has been heavily criticized because it’s a sole-source contract. That means there wasn’t a competitive bidding process. That’s seen as one reason GambetDC is delivering disappointing performances.

Not to mention, GambetDC lost $4 million in 2021 and has delivered just $8.5 million in tax receipts to the District since going live nearly four years ago. Those are among the reasons that OLG entertained the idea of replacing GambetDC, and why that appears to be on the verge of happening.

At a January meeting of the D.C. Council’s Committee on Business and Economic Development (CBED), Suarez told committee members that OLG wanted a big brand with superior customer satisfaction. Hence the need for change.

That transition appears to enjoy the support of some council members that were critical of the lack of competitive bidding with the Intralot contract. It also includes those that realize GambetDC has, to date, been a dud. So disappointing is Washington, D.C.’s lone sports betting app that many bettors in the District still go to Maryland or Virginia to use DraftKings, FanDuel, and other sports betting offerings.

Transition to FanDuel Better Deal for D.C.

The letter penned by Suarez to the City Council didn’t mention a date on which GambetDC will be removed in favor of FanDuel. But the move will have economic benefits to the city. For example, FanDuel will pay a $5 million conversion fee within 37 days of taking the reins from GambetDC.

Additionally, FanDuel will take over Intralots $2 million to $4 million in annual operating payments to the city. Should OLG extend its agreement with Intralot, which could be more likely with FanDuel in the picture, the city could garner $10 million in guaranteed payments for the four years commencing July 2025, according to iGB.

FanDuel will also become responsible for operating the 63 GambetDC kiosks currently found in lottery retailers across the District.