Home NewsCasino Gambet, the lottery that was formerly known as Gambet, has been abandoned by FanDuel

Gambet, the lottery that was formerly known as Gambet, has been abandoned by FanDuel

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According to a DC City Council letter obtained by iGB, FanDuel is set to replace GambetDC as the sole sportsbook available in District of Columbia.

However, the letter did not specify when FanDuel would launch their platform in all cities.

The letter, dated 8 March confirms that the OLG “has approved Intralot’s request for FanDuel to be selected as a subcontractor”, in order to provide the sports betting platform of the lottery.

Intralot has been struggling to create a product that is competitive in GambetDC, a contracting company with District of Columbia. In 2021, the platform suffered a loss of $4 million.

In a letter, OLG’s executive director Frank Suarez stated that “OLG has evaluated the existing platform and believes that FanDuel with its leading platform in the industry will perform better” within the DMV area. The national platform, which is market leading will improve player experience quickly and lead to significant revenue growth.

The district won’t be required to pay for operating costs

According to the letter, when FanDuel assumes control of the OLG’s operations the OLG won’t be responsible for the $2m to 4m operating costs per year. FanDuel is responsible for payment processing, promotion, marketing, and retailer commissions.

Within 37 days after signing the contract, Intralot will pay $5 million to OLG as a “platform conversion fee”. OLG’s contract extension with Intralot would guarantee the city $10m of revenue for four years starting in July 2025.

Audi Field will be the first MLS stadium to host a FanDuel sportsbook in 2022.

DC United

Currently, GambetDC can be purchased via a digital platform or at lottery retailer kiosks. This platform will be replaced by the FanDuel-based version, and 63 lotteries retailers’ kiosks will also receive FanDuel hardware.

FanDuel is now available in all of the DMV as Maryland and Virginia are already part of it. The letter states that FanDuel “has approximately 50% market share” of Maryland and Virginia. The company has access to the market in Washington, D.C. through a partnership between the DC United Soccer Team and Audi Field.

No competitive bid process

DC operators are restricted to offering their digital platform within a certain radius of their retail partners’ location. BetMGM has, for instance, a partnership between the Washington Nationals and BetMGM. The platform can be accessed at Nationals Field and the surrounding area, but is geofenced to the rest of Washington.

The DC City Council has been discussing ways to raise revenue, and whether Intralot or GambetDC should be replaced.

Intralot was awarded the OLG contract as part of an extension to its existing lottery contract without going through a bid competition. Subcontracting FanDuel allowed Intralot to avoid a bid competition.

GambetDC, since its launch in May 2020 has paid taxes to the district of $8.5 Million.

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