The District of Columbia had vision of sports betting revenues dancing in its collective head when the council voted to legalize such wagers in 2018.
But the reality has fallen far short of the vision.
In fact, revenue projections have been revised downwards in the wake of start-up costs, legal battles, and the coronavirus pandemic. With Virginia in play and Maryland to soon follow suit, the pressure builds to change the city’s fortunes.
The District’s Committee on Business and Economic Development budget oversight hearing June 17 said for the first three quarters of the fiscal year, revenues were around $230,000, according to WTOP.
“This fiscal year has been difficult for us because of the Covid restrictions and we’re looking forward to next fiscal year being able to significantly increase that, once we get retail-based sports wagering operational,” said Ridgely Bennett, the D.C. Lottery’s general counsel, which oversees sports betting.
With tourists and commuters returning to the city, the GambetDC app should see an increase in activity.
“Once we open retail sports wagering, you’ll be able to go to a location and pay with cash,” said Bennett, who argued that bettors prefer cash to using the verification process required to set up online mobile accounts. However, such a process has not hindered activity in New Jersey.
Bennett added that bettors prefer to stand in line at the Capital One Arena or use the William Hill app in proximity to the arena because the brand has greater recognition than GambetDC. This fiscal year, bettors have wagered $92 million through William Hill sites. GambetDC users wagered only about a third of that, despite the expansive availability compared to the arena or park.
BetMGM just launched its sportsbook at Nationals Park and vicinity, giving bettors another option.
“What we believe will happen now that the city is opening up, now that sporting events are actually occurring, you’ll see how that model will bring in a significantly greater revenue to the District than what the privately operated sports wagering will do,” said Bennett. “We’ll have to see, but that’s how the program is designed and we’re still confident in the model.”
