DC sports betting to collect less than expected
The state government has said that DC sports betting will generate US$16 million less in revenue in the next 15 months than the originally expected.
US.- Sports betting is pushing the gaming market to the next level in the US as it posts astonishing figures. However, DC sports betting will rake less money than expected, as the government was a bit too optimistic about it.
According to Beth Bresnahan, director of the D.C. Lottery, revenue projections were a bit too high for the next 15 months. The lottery cut projections down by US$16 million, the official told a D.C. Council committee this week.
As quoted by The Washington Post, DC’s sports betting operation will just earn US$750k this financial year. It will also generate a further US$17.1 million during the next year but will be short of initial expectations.
Chief Financial Officer Jeffrey S. DeWitt was too optimistic on the segment and projected major revenues. In November, he forecasted sports betting would generate US$7.7 million this fiscal year and US$26 million during the next one.
Furthermore, the revised revenue estimate for FY2021 is now US$27 million, a bit less than the previous US$28.3 million.
“We did not have the capability to launch the platform without a contract,” Bresnahan said.
“There are questions about the rosy forecast that the CFO gave us and the reality of this contract,” said Council member Elissa Silverman. “We have now found out that the CFO and Intralot’s forecasting was, I would say, overly optimistic.”
DC’s sports betting legalisation
Lawmakers from the capital of the United States voted in December in favour of a bill that legalised sports betting.
The territory became the first in the country without casinos to legalise sports betting. As there is no casino commission, the DC Lottery will oversee sports betting operations, and will sell licences to sports books at stadiums and arenas for US$250k for five years, while retailers are eligible to get a two-year licence for US$5k. The current lottery vendor of the D.C. Lottery is Intralot.
After the measure got approved, lawmakers were quick to pass emergency language in order for sports betting to start as soon as Mayor Muriel E. Bowser signs the legislation. Anyone 18 or older can place bets on sporting events.
Operators would be taxed 10% of total revenue, and it is predicted by the Office of the Chief Financial Officer that legal sports betting will bring US$92 million over the next four years. Most of that number would go to the general fund of the territory.
