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Applications Can Soon Be Made for Sportsbooks in Washington, D.C. Industry

DC Lottery Announces They’ll Be Taking License Applications for Sportsbooks

Amelia WalkerBy Amelia Walker Senior Content Writer Updated: 03 September 2019
Amelia Walker Amelia Walker Senior Content Writer

Amelia Walker is a Senior Content Writer at Betting.US. She has a law degree and deep knowledge of the gambling laws in the United States. Her mission is to keep players informed about responsible gambling, while her passion for sports helps her create useful guides. Amelia has over a decade of experience in betting, which has positioned her as a trusted voice among our readers.

The DC Lottery – the regulatory body responsible for issuing gambling licenses in Washington DC – has announced that they’ll begin accepting applications for gambling licenses in the state, bringing sports fans one step closer to being able to place wagers on their favorite games.

Nicole Jordan – the director of marketing and communications – revealed that the application process for operators who want to receive a sportsbook license will ‘open in a couple of weeks.’ The DC Lottery currently has a contract with Intralot to operate its own sports betting facilities, but it will also be giving out licenses to operators who want to operate in one of Washington DC’s four major sports arenas and stadiums.

A Controversial Exclusivity Agreement

The DC Lottery has announced that no private betting establishment that’s located within a 2-mile radius of a stadium will be eligible to apply for a sportsbook license. This has proved controversial with some, and some people say that the DC Lottery is favoring the ‘big-name’ operators who have deep pockets.

That being said, the DC Lottery insists that their method of issuing licenses is fair – and they are currently offering two types of licenses. The first is a provisional license, and the second is a full license. Provisional licenses are designed for operators who are already established in other jurisdictions and want to penetrate into Washington DC.

It will allow for experienced operators to operate exclusively within an area for a total of 6 months, with an option to extend the agreement by a further 6 months at the end. According to the DC Lottery, operators who apply for a provisional license and are denied MUST cease operations immediately. To qualify for a provisional license, an operator must be located in Delaware, Mississippi, Nevada, New Jersey, Pennsylvania, Rhode Island, West Virginia or British Columbia.

Speaking about the process, Director of Marketing and Communiations Nicole Jordan said:

“It’s about a 30-day review process for us. So, they’ll be able after that process, if they are accepted, they’ll be able to start opening their sportsbooks.”

An Expensive Licensing Process

Operators who wish to apply for a sports betting license must pay an initial fixed fee of up to $500,000. This is for a Class A license. Class B licenses will cost a reported $100,000. This license fee is reduced by 75% if the operator is entering into a joint venture with a certified, small, disadvantaged resident-owned business which acts – in the legal sense – as the majority stakeholder.

There will also be various taxes and renewal fees to pay, although the specific details of these are yet to be announced by the DC Lottery. However, if what we’ve seen in other parts of the US is anything to go by, it’s likely these license fees will be expensive. It remains to be seen which operators will apply for a sports betting license from the DC Lottery, but it’s likely to be quite a few!