Last updated: August 14, 2024
Washington DC’s mobile sports betting faces disruption as Mayor Bowser delays signing the budget, affecting plans for BetMGM and Caesars Sportsbook. FanDuel has temporarily ceased operations amidst the standoff over tax hikes and budget details, with potential implications for revenue and future sports betting expansion in the city.
Mobile sports betting is currently paralyzed in Washington, DC because Mayor Muriel Bowser has not yet approved the fiscal 2025 budget, removing FanDuel for a while. The expected inclusion of services beyond FanDuel’s temporary domain as the sole sports betting provider in the city has been slowed even though BetMGM and Caesars Sportsbook has expressed intentions of offering the same services in the District. These operators have not launched yet due to the budgeting issue resulting from Bowser who returned the budget to the City Council for considering proposed taxes.
Bowser elaborated her thoughts in a letter addressed to Council Chairman Phil Mendelson on Tuesday, claiming she wouldn’t approve a budget that she said could raise property and income taxes not warranted, increase paid family leave taxes to unproven heights, and crises public schools.
Up to this point in time, the mayor has not learned the official capacity to veto the budget. If can be left unsigned, the budget will go into effect on July 25 and congress will review the budget for one month. If the budget does not pass through the approval process, then Bowser together with the Council would have to recast the proposal.
Later in June, the District of Columbia Council put forward an amendment of the fiscal 2025 budget introduced by the council member Kenyan McDuffie (I-At Large) to diversify the MSS market in sports betting. This amendment allows for up to seven gaming companies to apply for a sports betting license with the District.
This move poses a potential threat to FanDuel, a unit of Flutter Entertainment (NYSE: Until merchants could procure FLUT as a more complete and reliable product since April, it again monopolized the market. This occurred when Intralot stopped the operations of its GambetDC app and shifted its tasks to FanDuel but to very limited success.
However, when the budget was delayed, making FanDuel halt their operations for a while, it was established that the company has since bounced back and recorded impressive amounts of GGRs and handling volumes that were way beyond GambetDC. This can be the reason why the taxes imposed to the city have increased because of the increase in income from different businesses.
In response to the current situation, FanDuel reaffirmed its commitment to the District, expressing readiness to resume sports betting operations as a Class A operator in collaboration with DC United at Audi Field. The company also plans to continue offering its mobile app across Washington, D.C., pending final approval of the FY2025 budget.
Assuming the budgetary issue is swiftly resolved, DC still has time to offer a mobile sports betting option. Major League Baseball began its all-star break on Monday and it will run through Thursday.
Any other major team sport has concluded for the season as of right now.
It is questionable, though, if a team will ever be good enough for operators and financially struggling cities to give up on mobile sports betting apps. The Open Championship begins on Thursday, and with the growing popularity of WNBA wagering, it is critical that the City Council address the budget and involve Bowser. The proposed budget calls for spending $21 billion in 2025.
