The City Council passed emergency legislation which makes the law - originally filed by Councilmember Jack Evans in September- effective immediately allowing the D.C. Lottery to begin drawing up regulations. The permanent bill is expected to be approved by Mayor Muriel Bowser before then being submitted for a 60-day Congressional review.
Evans told reporters he believes betting could begin before the start of the Major League Baseball (MLB) season in April.
The bill will only allow mobile wagering via the D.C. Lottery's Intralot powered platform. However, a number of designated facilities, such as the city's major sports arenas, will be able to sign their own partners which will be able to offer their mobile services to customers within a two-block exclusivity zone, inside of which no competition is allowed.
The four venues that can offer betting are the 82,000-capacity FedEx Field, the 41,000-capacity Nationals Park, and Capital One Arena and Audi Field which can both hold just over 20,000 fans. Between 40 and 60 other premises that currently offer lottery products – between 10% and 15% of the current total – are expected to apply for licences.
Operators will be charged a 10% tax on gross wagering revenue, with Class A five-year licenses at the sports venues costing US$250,000. Class B sports betting licences can be obtained by other premises at a cost of US$50,000. More limited two-year retail licenses cost US$5,000 apiece.
Sara Slane, the AGA’s senior vice president of public affairs, welcomed the passing of the legislation, in particular the reasonable tax rate and the exclusion of any integrity or exclusive data fees, which had been considered during the legislative process. However, she admitted deep concerns about the D.C. Lottery being granted an effective monopoly over mobile wagering.
“AGA urges District policymakers to reevaluate the merits of this key aspect of their framework and allow greater competition in the future,” she said.
The fiscal impact statement created by the D.C. Office of the Chief Financial Officer projects gross sports wagering revenue of more than $7.6m for the second half of 2019, then US$26m in 2020, US$28m in 2021, and US$30m in 2022.
Source: GMB / iGaming Business
