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A third sports betting app filed an application to join DraftKings and FanDuel in the District
WASHINGTON, D.C., USA — It appears sports gambling in Washington, DC may be expanding faster than first expected.
On Thursday, DC’s Office of Lottery and Gaming (OLG) told WUSA9 it has received not one, but two Class C license applications since DC Council relaxed restrictions on which companies can offer sports betting in the District. OLG would not confirm the names of the two new sports betting applicants.
“Once a license is approved (or denied), OLG will then release the operator's name,” OLG spokesperson Melissa Davis wrote in a statement.
DraftKings announced its intention to launch its online sportsbook in Washington D.C. Tuesday, pending licensure and regulatory approvals.
Which sports betting company applied for the second “Class C” betting license remains unclear. City regulations allow a “Class C” license holder “to offer sports wagering over mobile or online applications to those persons physically located within the District of Columbia.”
ESPN Bet, Fanatics Sportsbook and Casino and bet365 are other nationally known mobile sports betting options nationwide. BetMGM and Ceasars Sportsbook also have mobile betting sites, and are already available to D.C. residents within the perimeter of the gambling companies’ brick and mortar sportsbooks at Nationals Park and Capital One Arenas, respectively.
When DraftKings and the second, unnamed, mobile sports betting site begin operating in the District is also not known. But it might not take long. DrafKings has already begun circulating marketing materials in the city, offering “$200 in Bonus Bets once we’re live” in a post on X.
Under the new statute, OLG is required to issue a temporary Class C license within one week of receiving three items:
- Proof that the applicant is an eligible sports team or proof that an eligible sports team has assigned, delegated, or subcontracted its Class C operator licensing eligibility to the applicant as its commercial partner
- Proof that the applicant or its management services provider is licensed to offer mobile sports wagering in not fewer than five jurisdictions of the United States pursuant to a state or territorial regulatory structure, either directly or through a parent company or affiliated subsidiary
- The non-refundable application fee
DraftKings said it is already operating in 28 other jurisdictions in North America.
Sports betting in D.C. got off to a disastrous start in 2019, after OLG signed a contract with an overseas vendor to create the GambetDC app. It has been plagued with problems since creation, including a glitchy system that didn’t always work and had worse odds than those being offered by brick-and-mortar sportsbooks at Capital One Arena and Nationals Park.
The result was people simply didn’t use the Gamebet DC app that much. GambetDC was projected to bring in $20 million a year in revenue when DC Councilmembers approved sports betting in 2019. But it only generated a little more than $4 million over that time.
By comparison, Caesars Sportsbook at Capital One brought in more than that in January 2024 alone, and only a very small portion of those profits are taxable. GambetDC actually lost money one month in 2023, which is nearly unheard of in the sports betting world
In March, the city announced it was shaking things up to try and salvage its failing sports betting app. OLG said it would partner with FanDuel, allowing the national sports wagering operation to take over D.C.’s sports betting operation on a phased basis, at the time making FanDuel D.C.’s lone citywide mobile betting option.
DC Council followed suit with legislation opening the market to other sports betting companies, who now appear to be taking advantage.
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