July revenue figures confirm how the sports betting app has failed to live up to its hype. With a review expected soon, gambling pros and D.C. leaders seek excuses to explain the underwhelming performance, according to the Washington Post.
In 2019, D.C.’s chief financial officer predicted the app would net more than $22 million in revenue for the district in 2021. But the figure is only $6 million as of March, according to the Office of Lottery and Gaming.
The app attracted less than 61,000 bets with a handle of slightly more than $2 million gambled in July. The number of bets has decreased throughout the summer and spring months.
Everyone points to the coronavirus pandemic as a culprit. Sports shut down early on. And when they resumed, traffic into the city remained low. Users blame the GambetDC app for collecting too much info, for long lag times for payouts, for difficulty using the app.
Byron Booth, the CEO of Intralot said the rate it pays winners should be raised to draw more wagers.
“If the city decides it wants to stay in this space, either raise the payout to be competitive” or restrict other options for legal gambling in the city, Booth said.
Nicole Jordan, a spokeswoman for the Office of Lottery and Gaming, said that the office is considering raising the payout rate. But she also pointed to other reasons GambetDC has not been able to yield large profits.
The city’s contract with Intralot says the company will get 42.5 percent of gross gaming revenue, the money left over after the sportsbook takes in wagers and then pays out money to winners. From October through June, GambetDC’s gross gaming revenue was $4.5 million, meaning the district paid Intralot nearly $2 million and should have had more than $2.5 million left over. Some of the money went to marketing and other expenses.
Additional private companies are applying to run more sportsbooks in the district, and GambetDC just started operating kiosks at several bars so that bettors can play in person, with some of the money going to the host businesses.
