FanDuel generated $4.9 million (£3.8 million/€4.5 million) in revenue during its first full month as the official sports wagering platform for the Washington DC Office of Lottery and Gaming (OLG).

In May, the first complete month of its operation in Washington DC, FanDuel reported handling $29.7 million in bets. This figure represents a staggering 450.0% increase compared to the $5.4 million wagered in the same month last year under the previous operator, GambetDC. Players won a total of $24.9 million from their bets with FanDuel last month.

FanDuel officially commenced its role in DC on April 15, following the OLG’s transition from Intralot-run GambetDC, which had been its long-term partner for sports betting.

The $4.9 million generated by FanDuel this May significantly surpasses the $711,282 reported by GambetDC in the same month the previous year. Revenue is calculated by subtracting player winnings from the total bets placed during the month.

Interestingly, the amount generated and wagered with FanDuel exceeds that of all operators combined for any previous month in DC. Other operators active in the DC market include BetMGM and Caesars Entertainment. Last month, the OLG released figures for FanDuel’s first 30 days of operation in Washington, DC, showing $5.0 million in revenue.

The Status of GambetDC in May

While GambetDC has lost its online presence in DC, the brand maintained a minor presence in the market through its kiosks. In May, these kiosks generated $189,095 in revenue from $898,671 in wagers. Players won approximately $709,576 from betting via the GambetDC kiosks.

The future of these kiosks remains uncertain. FanDuel has already announced plans to replace betting kiosks at 63 lottery retailers across DC, indicating that GambetDC’s presence may be short-lived. Although the GambetDC app is still accessible, players can no longer place bets on sports. Existing customers have until October 15 to withdraw any remaining funds from the platform.

GambetDC has faced challenges in DC for several years, with Intralot, its contracted partner, struggling to deliver a competitive product. Consequently, it was no surprise when the OLG approved a request from Intralot to subcontract online sports betting to FanDuel, which allowed FanDuel to launch in DC shortly thereafter.

Beyond the increase in wagers and revenue, the partnership with FanDuel brings additional benefits to the OLG. These include eliminating operating expenses, which previously ranged between $2.0 million and $4.0 million annually. Now, FanDuel manages payment processing, promotions, marketing, and retailer commissions.

Potential for a More Open DC Market

Transferring control to FanDuel might be the initial step towards opening DC to more operators and increasing competition.

On June 12, the DC Council approved the FY2025 budget, which includes the Sports Wagering Amendment Act of 2024. The council unanimously passed the budget during a legislative meeting, with a second vote expected as early as next week.

For a comprehensive overview of the hearing, including details on a defeated amendment that aimed to eliminate the new sports betting plan, click here for the latest from Jill R. Dorson.

Source: “DC betting handle rockets 450% in FanDuel’s first full month”. iGaming Business. June 13, 2024.

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PLBY Group, Playboy’s parent company, has lost $4.9 million because of the sharp declines across the cryptocurrency space. The company had sold its Rabbitars NFTs for Ethereum, which has now lost much of its value.

Playboy launched its NFT line in 2021 and accepted Ethereum as a payment method for the tokens. However, the price of Ethereum coins plummeted, resulting in big losses for the media company.

As reported, Playboy’s digital assets, valued at $1.75 million at the end of September 2022, have now declined to $327,000. The so-called crypto winter has greatly impacted the company’s decentralized currency portfolio.

The worst part for Playboy is that it accounts for its digital assets as “indefinite-lived intangible assets.” These are subject to impairment losses that cannot be recovered even if the price of the crypto tokens rises again.

As noted by the company, Ethereum coins’ price fluctuated heavily in 2022. Turbulent periods saw the coins rise and decline, with their lowest price being $964. However, the carrying value of each token the group held at the end of the reporting period reflects the lowest price of one Ethereum since its receipt.

Therefore, negative swings in the market price of Ethereum could have a material impact on the company’s earnings and carrying value, while only time a rise in prices will impact the company’s earnings positively, is when the Ethereum held in the balance sheet, are sold at a gain.

Playboy statement

Playboy’s Passion for Blockchain Did Not Pay Off

Playboy’s Rabbitar NFTs were launched in October 2021 when cryptocurrencies were still one of the hottest topics. Back then, few could have predicted the current state of the crypto market and Playboy was interested in exploring new monetization opportunities.

The Rabbitar line actually was not Playboy’s first venture into the world of blockchain as it had launched the so-called Liquid Summer collection earlier that same year. The Liquid Summer line was created in collaboration with the artist Slimesunday and featured photographs of Lenna Sjööblom, a famous Playboy model.

Playboy was interested in the crypto space far before minting the Liquid Summer collection. This was attested by its decision to allow customers to subscribe to Playboy TV via Bitcoin in 2018. Playboy eventually allowed customers to use Bitcoin payments on Playboy.com as well.

Despite its genuine interest in the crypto space, Playboy now has to deal with significant losses.

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