After the US Supreme Court’s ruling to abolish PASPA in May 2018, five states (including West Virginia, which borders DC and has legalized gambling) have introduced sports betting for their residents, joining Nevada, a state known for its longstanding legal gambling. In the upcoming year of 2019, there is a possibility that the Supreme Court justices themselves will have the opportunity to place bets on sporting events.
The idea of legalizing sports betting within the city limits of Washington DC is currently being discussed by the city council. On October 17, the Finance and Revenue Committee convened a meeting to listen to testimonies regarding the Sports Wagering Lottery Amendment Act of 2018.
Getting the ball rolling
In September, Councilmember Jack Evans drafted and presented a bill that would authorize licensed establishments in Washington DC to offer sports wagering.
According to the Legal Sports Report, his objective is to ensure that the bill reaches the mayor’s desk for signature by Thanksgiving. Afterward, the bill, similar to all other DC bills, would undergo a 30-day review by the US Congress.
Although Congress has the authority to disapprove any submitted bill, Evans maintains a strong belief in the bill’s likelihood of success.
Sports betting will be up and running by the opening day of baseball next year if all the pieces fall into place.
Representatives from FanDuel, DraftKings, MGM Resorts, and the NBA were present as witnesses during the hearing. Several organizations that are supportive of gambling expressed optimism and showed their support for sports wagers in our nation’s capital.
Jeff Ifrah, a strong proponent of interactive gaming, urged the council to broaden its scope to include online poker and casino gaming in the district. In contrast, the NBA stubbornly persisted in advocating for integrity fees, despite their impracticality.
Breaking down the bill
Many of the recent laws passed in various states to legalize sports betting share similarities with the Sports Wagering Lottery Amendment Act of 2018. This particular law outlines the regulations, licensing process, and budget distribution for the newly established sportsbooks.
The responsibility of oversight would be assigned to the Office of Lottery and Gaming, with the chief financial officer being designated as the department’s supervisor.
The license fee for each licensee is set at $50,000, and the validity period of the licenses is five years.
License holders will be required to pay a 10 percent tax on their total earnings from sports betting. The tax proceeds will be allocated to assist early childhood development and fund arts and humanities initiatives within the district.
The current version of the bill does not incorporate any provisions for an integrity fee. Nonetheless, Evans advised that the absence of such fees is based on the opposition they have encountered in other areas. To put it simply, integrity fees are not included because they are not being implemented elsewhere.
A great opportunity for DC
One distinguishing feature of the legalization of sports betting in DC is that it lacks any casinos or other gaming establishments. Consequently, instead of confining sportsbooks to existing gambling venues, individuals within the city limits may have the opportunity to place bets in bars, sports arenas, and even hotels.
Evans identifies a lucrative prospect in the hotel industry, specifically focusing on Washington DC hotels. With a staggering 20 million annual guests, these hotels present an exceptional opportunity for significant revenue generation through the establishment of in-house sportsbooks.
Evans expressed, “We aim to enter the hotel market and create a benchmark bill that can be adopted by other regions across the nation.”
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