Last updated: March 12, 2024
OLG Executive Director Frank Suarez’s letter to the DC City Council reveals plans for FanDuel to potentially replace struggling GambetDC. The move, aimed at enhancing player experience and revenue growth, follows criticism of GambetDC’s underperformance. FanDuel’s takeover promises economic benefits, including a $5 million conversion fee and up to $10 million in guaranteed payments.
A look at the new way the sports betting scene is now in Washington, DC, shows that FanDuel may end up taking the position of GambetDC, which has mostly been blamed for the app.
iGB obtained a memorandum between Executive Director Frank Suarez from the Office of Lottery and Gaming (OLG) and DC City Council that says OLG permitted Intralot to migrate all its work to FanDuel.
Suarez has admitted that OLG and Intralot examined the existing platform together and decided that FanDuel’s well-known technology will work much better, especially in the very hard competition in that area. Suarez raises how FanDuel’s brand presence can improve the player experience, which could lead to immense revenue growth.
Flutter Entertainment in Dublin is one of the owners of FanDuel. The company is considered a strong competitor against DraftKings in the online sportsbook market in the US for the first place position in terms of market share. The company is now well-entrenched in the district as it runs the retail sportsbook at Audi Field stadium in the area.
It is common knowledge that the OLG was roundly criticized for its Intralot contract, which included sourcing and a lack of a competitive bidding process. This membership has been identified as one of the core reasons why GambetDC, the mobile sports wagering application, underperforms.
GambetDC’s financial problems can be seen from the fact that they incurred losses of $4 million recorded in 2021. Also, tax revenue generated for the District was only $8.5 million almost four years after the operation began. Besides these obstacles, OLG considered replacing GambetDC with another one.
When the Director of OLG, Mr. Frank Suarez, addressed the CBED in the January committee, he reiterated the need for a reputable brand coupled with excellent customer satisfaction, which necessitates a recharge.
The potential transition to a new operator appears to garner support from certain council members who are critical of the lack of competitive bidding in the Intralot contract. Many recognize GambetDC’s shortcomings, prompting bettors in the District to seek alternatives in neighbouring Maryland or Virginia for platforms like DraftKings and FanDuel.
The date on which GambetDC would be replaced by FanDuel was not specified in Suarez’s letter to the City Council, but the city will profit economically from the shift. Within 37 days of assuming control from GambetDC, for instance, FanDuel will pay a $5 million conversion fee.
Furthermore, FanDuel will assume responsibility for Intralots’ $2–$4 million yearly operating fees to the municipality. The city might receive $10 million in guaranteed payments for the four years starting in July 2025 if OLG extends its contract with Intralot, which is more likely now that FanDuel is involved, according to iGB.
Also, FanDuel will take over management of the 63 GambetDC kiosks that are presently located in lottery merchants throughout the District.
Susan is a verified gambling support specialist who has helped thousands of problem gamblers get back on their feet through therapy and financial counseling. She’s also worked as a cage manager in four Las Vegas casinos and spent two years in Macau in her 30s, where she became extremely savvy at Sic Bo and other Asian table games. Her knowledge and expertise have and continue to play a priceless part in how we structure our content, particularly when it comes to game guides and casino reviews.
