The recent communication, dated March 8, confirms that the Ontario Lottery and Gaming Corporation (OLG) has sanctioned Intralot’s choice of FanDuel as a new subcontractor for the sports wagering platform.
This decision comes in light of Intralot’s challenges in delivering a competitive offering through GambetDC, which reported a $4 million loss in 2021.
In a letter, OLG Executive Director Frank Suarez highlighted the collaborative decision between OLG and Intralot to transition to FanDuel’s leading platform, anticipating a significant improvement in the DMV area’s competitive sports wagering landscape.
Suarez emphasized, “OLG and Intralot have evaluated the current platform and believe that FanDuel and its industry leading platform will perform better within the highly competitive DMV region,” further stating the expected benefits of enhancing player experience and boosting revenue growth.
The shift to FanDuel is also financially strategic for OLG, relieving it from annual operational expenses ranging from $2 million to $4 million.
FanDuel will take over responsibilities including payment processing and marketing, in addition to paying OLG a $5 million “platform conversion fee” within 37 days post-contract signing with Intralot.
An extension of Intralot’s contract could secure the city an additional $10 million over four years starting July 2025.
GambetDC, currently accessible online and through kiosks at lottery retailers, will be phased out in favor of FanDuel’s platform.
This transition involves replacing existing kiosks with FanDuel equipment at 63 lottery retail locations.
The introduction of FanDuel is expected to consolidate the sports wagering market across the DMV region, leveraging FanDuel’s substantial market presence in Maryland and Virginia, where it holds about 50% market share. FanDuel’s entry into the District is facilitated through a partnership with the DC United Soccer team, including a retail sportsbook at Audi Field.
The localized digital platform offering, a requirement in D.C., currently restricts operators like BetMGM to operate only within specific zones, a model FanDuel is set to adopt.
This move comes amid criticisms of Intralot and GambetDC from the D.C. City Council, questioning revenue enhancement methods and the possibility of replacing Intralot, which initially secured the OLG contract without a competitive bid.
This subcontracting to FanDuel marks another instance of bypassing competitive bidding. Since its inception in May 2020, GambetDC has contributed $8.5 million in taxes to the District.