Is the resignation of the DC Lottery director the turning point for the organization as the rollout of legal sports betting in Washington, D.C. has been mostly characterized by negative events?
After serving as the DC Lottery Executive Director for three years, Beth Bresnahan concluded her tenure last Friday. This marks yet another transition in leadership since the commencement of sports betting in DC.
DC Lottery director resigns citing personal issues
Bresnahan resigned, stating family matters in Massachusetts as the reason, but her resignation coincided with her scheduled appearance before D.C. leadership in her official capacity.
On March 10, the District Council’s Committee on Business and Economic Development scheduled a hearing. Bresnahan was listed as one of the witnesses. Among the topics to be discussed during the hearing is the assessment of regulated sports betting’s revenue generation compared to projected figures.
Jeffrey Dewitt, the former Chief Financial Officer of Washington, D.C., has recently revealed his decision to leave the position and pursue another job. His last day of work will be on March 9. It is worth noting that these resignations follow a legal dispute concerning the launch of the DC Lottery’s online sportsbook.
The sports betting landscape Bresnahan leaves behind
In accordance with the law in Washington, D.C., only one online sportsbook is authorized within the district, which is operated by the lottery known as GambetDC. However, the legislation permits multiple retail sportsbook licenses and on-site mobile wagering.
Capital One Arena is not just a home to the Washington Capitals, Mystics, and Wizards, but it also houses a William Hill Sportsbook. A similar arrangement can be found at Nationals Park and BetMGM Sportsbook.
Not only is this landscape far from ideal, but it is also the center of a court dispute. In October 2019, a higher court judge rejected an injunction that aimed to prevent the DC Lottery from proceeding with its contract with sportsbook operator Intralot.
The main concern revolved around the lottery’s contract exclusivity. A District of Columbia resident, who owned a gambling domain, argued that he had no opportunity to pursue a comparable contract. While the dismissal of the injunction allowed GambetDC to commence operations, D.C. Council Member Jack Evans resigned in January 2020 due to ethics violations. Evans had been the primary advocate for maintaining the sole operator status.
Despite the uncertain origin of GambetDC, its performance may not meet expectations. The retail book by William Hill at Capital One Arena consistently surpasses GambetDC in terms of betting volume and earnings. This situation, where a physical book outperforms an online sports betting platform, is uncommon in most other regions.
The primary problem lies in the absence of promotions, a limited range of markets, and uncompetitive odds. Additionally, the lottery has been slow in developing the retail sports betting industry in the District.
Could a change in leadership move things along?
In Washington D.C., bar, restaurant, and tavern owners have the opportunity to apply for sports betting licenses, thanks to the local law. These licenses grant them the same betting privileges as those currently available at Capital One Arena. This includes both on-site retail betting and mobile betting, within a two-block radius.
Up until now, the process of awarding licenses for the lottery has been extremely slow. Among the interested applicants, Handle19 is one of them. This sluggishness could potentially result in a decrease in revenue for D.C. from sports betting, since these license applications come with associated fees.
It is possible that the next person in charge will prioritize the approval and procurement of licenses more. Currently, there is no apparent successor to Bresnahan. Her departure coincides with a struggling regulated sports betting market in Washington, D.C. Perhaps a change in leadership is precisely what the lottery requires.
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