A fourth operator has launched in Washington D.C., which is the nation’s newest competitive online sports betting market.

The District-wide launch of DraftKings puts it in competition with FanDuel, Caesars Sportsbook and BetMGM D.C..

Those other operators went live on July 17. 

The operators are each subject to restrictions around certain federal sites. And they each hold exclusives within the boundaries of the stadiums/arenas in which their partners play. For Caesars, that would be Capital One Arena (Capitals). For BetMGM, it's Nationals Park. FanDuel and DraftKings have partnered with DC United and Audi Field.

Betting is available for anyone 18 and over located within the legally-allowable areas in D.C. 

“DraftKings has officially launched its online sportsbook in Washington D.C. In addition to generating meaningful tax revenue to the District of Columbia and local communities in the area, we are thrilled to be able to offer our engaging platform complete with responsible gaming safeguards that encourage responsible play. Thank you again to the entire D.C. Council for their support in expanding mobile sports betting in the nation’s capital, and to D.C. United for their collaborative efforts to further elevate fan engagement,” DK said in a statement Thursday.

D.C. is the 29th jurisdiction in which DraftKings operates. 

Mayor Muriel Bowser returned the FY 2025 budget to the District council unsigned on July 16, and the Office of Lottery and Gaming gave operators the official go-ahead the following morning. 

At least 2 other operators have applied to launch in D.C. and could do so within a week. 

That budget included a law that allows the expansion of online betting outside of the DC Lottery. FanDuel, which had exclusively partnered with the DC Lottery,  shuttered its online app in the District briefly before the relaunch as a Class A operator in partnership with DC United. 

The passage of a new budget by the D.C. Council in June opened the door for up to 7 new online operators in the nation’s capital. The period for Bowser to sign the budget began on Monday. In the interim, DC Lottery director Frank Suarez resigned in June - effective July 31 - from his position to take job as head of the Connecticut Lottery.

BetMGM and Caesars operate brick-and-mortar books in DC. The BetMGM retail book at Nationals Park is now open to fans over 21 during games. Caesars plays host to a 20,000-square-foot retail book at Capital One Arena. 

Officials from other books offered their support for the new legislation. 

DraftKings thanked the Council “for taking a major step towards expanding mobile sports betting options in the District by approving changes to the District’s sports wagering framework as part of the Budget Support Act. We look forward to the potential opportunity to introduce D.C. sports fans to our mobile sportsbook product.”

Fanatics, ESPN BET, and BetRivers are expected to seek licenses once they become available. Would-be operators in Washington must be live and licensed in no fewer than five other U.S. jurisdictions. 

Washington DC’s New Sports Betting Law 

The Council’s FY 2025 budget was unanimously approved via emergency rules in June, allowing it to bypass Congressional approval. 

The Sports Wagering Act of 2024 creates a new betting license freed from control by the D.C. Lottery. Up to 7 professional sports franchises will be allowed to partner with online operators. 

FanDuel’s president told the City Council that it may leave the District if it were to lose its monopoly through the Lottery. That argument failed to materialize. The D.C. Lottery switched to FanDuel as its operator earlier this year. 

The Sports Wagering Act boosts the tax on retail books to 20%, doubling the current rate. The new Type-C online operators would pay a rate of 30% of their gross gaming revenue. Licenses will cost $2 million for 5 years. And $1 million per 5-year period thereafter. 

Washington’s population of 671,803 according to the 2022 U.S. Census makes it larger than two states with online betting: Vermont and Wyoming.

The expansion of online betting is expected to deliver another $5 million per year to the District in revenue. the Council said. 

Each of the 7 professional franchises located within the Washington District limits would be able to partner with a sports book. They are the Washington Capitals
 (NHL), Washington Wizards (NBA), Washington Nationals (MLB), D.C. United (MLS), D.C. Defenders (UFL), Washington Spirit (NWSL) and Washington Mystics (WNBA). 

The NFL Washington Commanders play their home games in Landover, Maryland. 

Council members also approved an amendment that protects small businesses that operate betting kiosks under the current system. If FanDuel no longer wishes to partner with the District, other operators would be free to step in and manage the kiosks.