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DC Becomes Latest Jurisdiction To Approve Sports Gambling

The DC Council "gave final approval" to legalize sports betting, and Mayor Muriel Bowser "supports the legislation," according to Fenit Nirappil of the WASHINGTON POST. Lawmakers in nearby Virginia and Maryland have "yet to act, while a casino in West Virginia is the closest place for Washingtonians to place a legal wager." The DC Lottery would "oversee sports betting under the bill." The program is "expected to raise" $92M for city coffers over the next four years. Most of that money would "go to the general fund, but the bill also earmarks" about $1M annually for "violence prevention and early-childhood care as well as $200,000 for gambling addiction treatment." A mobile app is "expected to be the most popular method to place a bet, but the DC Lottery would have the exclusive ability to operate it, closing off a potentially lucrative market to private business." Under the legislation, private sports betting facilities at arenas "must pay $250,000 for five-year licenses." Retailers that want to "allow sports betting on their sites must pay $5,000 for two-year licenses" (WASHINGTON POST, 12/19).

CLASS SYSTEM: In DC, Adam Zielonka notes the bill "creates two classes of sports gambling licenses, one for bars and restaurants and another for the four active, major sports venues" in the area: Nationals Park, Capital One Arena, Audi Field and the Entertainment & Sports Arena in Ward 8. RFK Stadium was "excluded from the list because it has no professional tenants and there are prohibitions against gambling on federal land." Stadiums will have the "option to create their own apps to allow mobile wagering," but they will "only work when users are inside the facility." Capitals and Wizards Owner Ted Leonsis was "critical of the council's decision to limit competition for the DC Lottery." American Gaming Association VP/Government Relations Chris Cylke believes DC's approach to the apps may be "somewhat confusing." Cylke: "If you have Caps season tickets and you're on your way to the arena, where you can use a mobile betting app to bet inside the arena or you can bet in the brick and mortar, but you can only use the Lottery app while you're in your Uber on the way there, it just seems like they're sort of unnecessarily frustrating the customer experience" (WASHINGTON TIMES, 12/19).

EXCLUSIVE CLUB: ESPN.com's David Purdum noted the exclusivity zones were "among a series of suggestions pushed by a lobbying coalition made up of strange bedfellows." The NBA, MLB and PGA Tour teamed with MGM, DraftKings and FanDuel to fight against the DC Lottery receiving the "exclusive right to offer mobile sports betting." The coalition also "requested that sportsbook operators be required to use official league data" and pay a 0.25% fee to the leagues "based on the amount wagered on the respective games." The requests were "not granted in the version of the bill that passed." Research firm Eilers & Krejick Gaming "projects a fully robust sports betting market" in DC could generate $36.8M in annual gaming revenue (ESPN.com, 12/18).

BIG PAYOUT: In Philadelphia, Andrew Maykuth notes the Pennsylvania Gaming Control Board reported that bettors wagered $1.4M at the state's "first legal sports-betting operation during its initial two weeks." The state treasury "appears to be the big winner, taking in $183,239 in taxes from sports wagering during the initial run." The revenue numbers are a "small sample compared to New Jersey, where sports bettors have wagered" $928M online or at casinos since betting was legalized in June (PHILADELPHIA INQUIRER, 12/19).

POWER TO THE PEOPLE: ESPN's Trey Wingo said of SBJ naming the American sports gambler #1 on the 50 Most Influential People In Sports Business, "We have leagues embracing what we've all known forever, that betting is a huge, massive part of our interest in sports and let's stop denying and pretending that isn't the case anymore." ESPN's Mike Golic said of sports betting, "This is already exploding, and who jumps into the fray with both feet? The Adam Silvers of the world." Golic added, "There's going to be a place for the NFL. The NFL will be the last into this because they're last in a lot of things, but they make the most money. ... They can afford at times to say they'll react a little later." Wingo added, "People bet on all sports but the money is always bet on football. It's always on football" ("Golic & Wingo," ESPN Radio, 12/19).

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