Caesars will be the operator that takes over Washington DC sports betting kiosks from Intralot, the Office of Lottery and Gaming announced Monday.
Caesars must provide at least one sports wagering kiosk to up to 53 DC Lottery retailers by no later than Oct. 1. The company may also install a point-of-sale terminal to cash betting tickets at licensed retailers that request one.
The change comes after the DC Council decided to change sports betting policies in June as part of its 2025 fiscal budget. The change eliminated GambetDC from the mobile market and opened the District up for sports betting licensed brands like Caesars, BetMGM and FanDuel to offer their mobile apps throughout the District, while opening up for new entrants as well.
Previously, Caesars and BetMGM could only offer mobile betting within a two-block radius of their sports partner that held the license. FanDuel opted not to launch a mobile app under the two-block limitation.
Breakdown of deal financials
Caesars will share 40% of gross gaming revenue with the OLG for the exclusive right to operate DC sports betting kiosks, according to the order.
Both Caesars and the OLG “shall pay retailer commissions of (i) 2.5% for sports betting retail sales, (ii) 0.5% for sports betting winnings cashed at retail locations licensed by the Office.”
Caesars will also pay a 1% commission on verified cash deposits made at licensed retailers for their mobile Caesars account.
Caesars is also responsible for all expenses related to the kiosks. Should the operator go into the red one month, Caesars is solely responsible for paying out the overage.
DC sports betting comes full circle
The switch from the GambetDC brand to Caesars seems poetic, considering Caesars now owns the William Hill brand.
The joint operation between Intralot and the DC Lottery struggled from its May 2020 launch, with bettors happier to travel to the in-person William Hill betting kiosks during the Covid pandemic instead of using the District-wide app.
Intralot launched GambetDC with the idea that it could hold around 20%, which meant odds looked quite different from other US operators.
Defense in DC
The DC Lottery defended that stance to LSR in November 2020:
“[GambetDC] is not designed to pay out like a casino-style sports book or to attract high-stakes bettors and odds shoppers. Our aim is to maximize revenue returned to the District by offering a convenient and exciting form of entertainment to casual bettors.
“While there is a disparity in the handle between the private operated and lottery operated sports books, as expected, the lottery operated is returning a higher revenue to the District, also as expected. Our mission is to maximize return to the District, and we strive to fulfill that every day in all areas of our gaming portfolio.”
The OLG repeatedly had to defend the GambetDC product to the DC Council over the years as it consistently missed on financial projections.
