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DraftKings Sportsbook launches in Washington, D.C.
DraftKings becomes the fourth sportsbook to operate in the nation’s capital, and should add great competition to FanDuel and the others already there.
As recently as two weeks ago, FanDuel Sportsbook had a monopoly of the sports betting market in Washington, D.C. It was the lone operator in the district and had minimal competition.
Fast forward to today, and the nation’s capital is now home to four sportsbook operators with more likely coming in the near future.
Last week, DraftKings Sportsbook announced a partnership with Major League Soccer’s D.C. United, which granted them a Class C license and allowed them to begin accepting bets in the nation’s capital. DraftKings joins FanDuel, Caesars and BetMGM as the four active operators in the district. Caesars and BetMGM joined the market earlier in July.
DraftKings now operates in 29 markets — 27 U.S. states, Washington, D.C. and Ontario, Canada.
Budget changes opened up D.C. sports betting landscape
For a short while, FanDuel was the lone operator permitted to accept bets in the nation’s capital. FanDuel was a subcontractor of Intralot, which replaced GambetDC in April of 2024. GambetDC failed to meet revenue projections for multiple years after the state launched online betting in 2020.
However, the D.C. landscape changed when lawmakers voted to support the inclusion of the Sports Wagering Amendment Act of 2024 in the city’s Fiscal Year 2025 budget.
Washington, D.C. had four Class A licenses available. Those licenses would be awarded to sportsbooks who operated retail locations at the city’s four sports venues. However, they weren’t very valuable.
Previously, BetMGM and Caesars were only allowed to accept bets within two blocks of their retail locations at Nationals Park and Capital One Arena, respectively. Now, Class A operators can accept bets throughout the entire city with their Class A license. FanDuel also qualifies for a Class A license thanks to its retail location at Audi Field. One more Class A license is available, but St. Elizabeth’s East Entertainment and Sports Arena — home of the WNBA’s Washington Mystics — does not currently have a retail sportsbook.
The amendment to the budget also introduces Class C betting licenses. These licenses will be given to operators who partner with a sports franchise that plays at least 90% of its home games in Washington, D.C. Those teams include the: Nationals (MLB), Capitals (NHL), Wizards (NBA), D.C. United (MLS), D.C. Defenders (UFL), Mystics (WNBA) and Spirit (NWSL). It does not include the Washington Commanders, who play their home games in Landover, Maryland.
DraftKings Sportsbook chose to partner with D.C. United. This means that six other Class C licenses are available for operators to acquire. One operator that has made its desire to enter the Washington, D.C. market known is Fanatics Sportsbook. There are currently no indications on when or how that will happen.
There is a slight difference between Class A and Class C licenses. Class C licenses cost $2 million to acquire and come with a five-year term. Renewal costs $1 million. Class C licensed operators are also subject to a 30% tax on revenue, while Class A licenses are only subject to a 20% tax rate.
Washington, D.C. now has the ability to allow up to 11 sportsbook operators to acquire licenses in the district. Three of the four Class A licenses are taken, but six of the seven Class C licenses remain up for grabs.
Increased competition is good for bettors
The recent change in the Washington, D.C. betting landscape is good news for sports bettors in the nation’s capital. The addition of DraftKings Sportsbook in particular is a welcome sight. DraftKings recently became the most popular sportsbook in the country in terms of betting handle.
Even without DraftKings, the multiple operator system is a win for bettors. Previously, FanDuel had no competition, which means it had no real reason to provide appealing promotions. Its lines didn’t have to be perfectly fair, because bettors had no other option.
Now, bettors have the choice between four sportsbooks. They can take advantage of sign-up offers at all four outlets in order to give their bankroll a boost. The competition among operators will also lead to more abundant promotions on a daily basis for existing users. Most importantly, bettors will be able to shop across multiple sportsbooks to ensure they are getting the most advantageous odds on their bets.