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DC Council Approves 2025 Budget; Paves the Way for Competitive Betting Market

Ziv Chen

Last Updated: June 27, 2024 1:02 PM EDT • 1 min 30 sec read.

Washington Nationals left fielder Jesse Winker is congratulated by right fielder Lane Thomas as we look at the details of the DC Council approving its 2025FY budget.
Washington Nationals left fielder Jesse Winker is congratulated by right fielder Lane Thomas after hitting a two-run home run. Photo by: Orlando Ramirez/USA TODAY Sports.

The DC Council approved the FY2025 budget on Tuesday, June 25. It includes a special provision allowing for an openly competitive sports betting marketplace in the Capital, which may expand residents' access to our best sports betting sites.

The new budget was passed as an emergency act to avoid submitting it to Congress for approval. The DC Council passed it via voice vote, which goes into effect on July 15.   

What's in the budget

The new budget will end FanDuel’s exclusivity on District-wide mobile betting, which currently operates in partnership with the Office of Lottery and Gaming (OLG). Provisions will allow current market operators BetMGM (Nationals Park) and Caesars Sportsbook (Capital One Arena) to expand their mobile sportsbook offering across the city. It is also expected to draw new operators to the District.

DC sports betting law currently supports two types of operator licenses, while the new budget creates a new class.

Four sports venues within the city (Capital One Arena, Audi Field, Nationals Park, and St. Elizabeth’s Sports Arena) are eligible for Class A licenses. These licenses allow the operation of a retail sportsbook in the venue and mobile betting within a two-block radius.

The second is a Class B license available to any business in the District that isn’t a sportsbook, such as a bar or restaurant.  

Class C

The provision will create a new Class C license that allows our best sportsbooks to partner with one of the Capital’s professional sports teams and offer mobile sports betting across the city. While FanDuel is currently paying a 40% tax rate due to its market exclusivity, the tax rate for Class C operators under the new plan will be 20%.

In addition to being the exclusive partner of the DC Lottery, FanDuel currently owns a Class A license that allows it to operate a retail sportsbook in Audi Field, where soccer teams DC United and DC Spirit play. The company could still partner with a local sports franchise to obtain a Class C license and pay the lower tax rate. If you want to see what the behemoth offers, check out our FanDuel promo code.

However, on June 5, FanDuel President Christian Genetski sent a letter to DC City Council Chairman Phil Mendelson warning that the company may terminate its partnership with the city if the budget provisions that allow an open market will pass.

Written By:
Ziv Chen
Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.