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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Leading betting and gaming group 888 Holdings has issued a cautionary statement to its investors, indicating that its Q3 performance may fail to reach initial expectations. The London Stock Exchange (LSE)-listed company remained optimistic that this downturn would remain temporary, expecting a swift recovery in 2024. This announcement closely mirrors that of Entain, signaling a potential industry-wide slump.

Negative Factors Compounded To Hinder Growth

The expected 10% Q3 drop should place 888’s quarterly revenue at roughly £400 million ($487.61 million). These results may indicate an unfortunate trend for the company as last year saw another 7% slump compared to 2021’s revenue of £484 million ($590.31 million). 888 attributes this negative trend to several factors, noting that the company remains positioned to overcome these challenges and emerge stronger than before.

Sustainability initiatives form one of the primary factors behind the projected revenue decrease. While this reflects the company’s commitment to responsible gaming, it impacted profits. Enhanced compliance measures in the UK similarly affected revenues in one of the operator’s primary markets. 888 cited ‘customer friendly sports results’ as another negative factor across all jurisdictions.

Compliance challenges are a running theme in the report, as the operator admitted that regulatory changes in dotcom markets resulted in the slower-than-expected recovery in customer activity and revenue. Furthermore, a shift in 888’s marketing strategy focusing on ‘higher return marketing’ resulted in temporary disruptions as the company adjusted to its new brand-led strategy.

The Company Maintains Its Leadership Position

Despite the Q3 revenue setback, 888 Holdings maintains a positive outlook. It expects improvements in the remainder of the year, with Q4 revenue projected to be sequentially higher than Q3, although still lower year-over-year by a mid-single-digit. 888 Executive Chair Lord Mendelsohn noted that the operator was making significant strides to improve long-term sustainability, lauding the team’s efforts.

We are strongly focused on investing to deliver good levels of expected revenue growth in 2024 as we progress towards our clear target of more than £2bn of revenue in 2025.

Lord Mendelsohn, 888 Executive Chair

888’s troubles closely mirror those of Entain, one of its primary competitors. The global gaming company cited slower growth in strategic regions and UK regulatory headwinds as the primary reasons behind the drop in projected revenue. These shared challenges could reveal insights regarding the wider gambling industry as many regulators reaffirm their focus on player protection, forcing operators to adapt.

888 is currently undergoing a leadership transition as Per Widerström prepares to assume the position of CEO. This change in leadership is part of the company’s broader strategy, which includes repaying loans related to the £2.2 billion acquisition of William Hill, achieving higher profit margins, and maintaining a net debt of less than 3.5x.

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