DC Sports Betting Licensing to Begin Soon as Regulator Approves Formal Rules

District of Columbia regulator has approved formal rules regarding the sports betting market in the capital and the license application process is very near to becoming a reality, with only weeks separating us from its beginning.

The updated plans were given permission by The Office of Lottery and Gaming (OLG). These concern matters such as of licensing, implementation of Sports Wagering Lottery Amendment Act that was ed by the DC City Council last year and more.

Outlining the Specifics

DraftKings, MGM Resorts are some of the companies and stakeholders that are willing to apply for their licenses…

…and the said document also contains replies to comments by these entities on regulations. It was revealed in the Office of Lottery and Gaming’s statement that more info will be released in order to guide potential applicants for sports betting licenses. The formal licensing process will be launched in the coming weeks.

The contract to run sports betting was granted to Intralot by DC Lottery’s executive director, Beth Bresnahan, who says:

“The 115-page document incorporates from potential operators in the District’s emerging sports wagering industry submitted during the public comment period that closed on July 15.

The changes incorporated by the office largely provide further clarification to the operating community and did not fundamentally change the rules as initially proposed earlier this summer.”

A City of Sports

Retail and digital sports betting is permitted in the 700,000-inhabitants-strong, USA’s capital…

…by the Sports Wagering Lottery Amendment Act. Washington DC has a team in each major sports league and is one of rare cities that do.

Under the of this Act, sports betting operators will be allowed to conduct business in four major sports arenas and stadiums in the capital, as well as in hotels, bars and restaurants outside sports complexes.

There is a fee of $500,000 for Class A licenses for four sports venues, and this will last for five years. A $100,000 fee is for a Class B license available for any other location.

Intralot Stays

Earlier this year, DC Council confirmed their earlier decision to award Intralot with the five-year contract to supply the city with their own sportsbook. This was a highly controversial decision because of the way in which the contract was handed to them, without allowing competition.

This even prompted sports leagues and gambling companies to form a unified opposition that demanded this to be redone and let other operators have their chance. This also raised concerns about a possible breach of integrity of sports.

Seven council have ed this contract…

…and five were against. The said contract could make Intralot earn $215 million over the next five years. The emergency measure was used by the Council to by the procurement process. This was done in fears that, if sports betting was not launched soon, DC could lose money to neighboring Virginia and Maryland who have launched their sportsbooks.

Jeffrey DeWitt released the figures last year, which suggest that the approach with multiple operators would generate $34.3 million for the state between 2019 and 2022. The deal between DC Lottery and Intralot alone could yield $92.2 million.

Source:

“DC sports betting licensing process to begin ‘within weeks”, igbnorthamerica.com, September 3, 2019.