Last month, sportsbooks in Washington, D.C. experienced a resurgence as the sports betting handle in the nation’s capital for February 2022 approached a staggering $19.1 million.
The 2022 Super Bowl played a significant role in the recovery of the four operators, helping them bounce back from January’s $18.6 million handle. Moreover, it put an end to a three-month period of decreasing volume in the DC sports betting industry.
Nevertheless, the wagered amount for February remains lower than the remarkable $26.3 million handle that DC bettors set in October 2021, as well as the $21.4 million in November and $19.2 million in December.
The timing of the decline in sports betting seems to be linked to the launch of Maryland’s retail sports betting market in December. It is probable that Maryland’s market attracted some bettors away from the D.C. market, but it is unlikely that it will have the same effect on Virginia’s market.
In January 2021, Old Dominion successfully introduced a flourishing online sports betting market. This thriving platform encompasses several prominent online sportsbooks, such as DraftKings, FanDuel, and other industry leaders.
Washington, D.C. exclusively authorizes the Lottery Commission to operate an online sportsbook known as GambetDC. Additionally, there are three physical sportsbooks: Caesars Sportsbook located at Capital One Arena, BetMGM situated at Nationals Park, and a Class B establishment housed within Grand Central Restaurant & Bar.
February 2022 sports betting breakdown
| Casino | Handle | Hold Percentage | Revenue | Monthly Market Share |
|---|---|---|---|---|
| Caesars by William Hill | $11.3 Million | 0.54% | $60,924 | 59.2% |
| GambetDC | $3.9 Million | 11.2% | $440,409 | 20.4% |
| BetMGM | $3.5 Million | 5.5% | $189,576 | 18.3% |
| Grand Central | $399,554 | 12.42% | $49,632 | 2.1% |
| Totals | $19.1 Million | 3.9% | $740,541 |
In February, the majority of betting activity took place at Capital One Arena, with Caesars Sportsbook leading the way by accepting $11.3 million worth of wagers, which accounted for nearly two-thirds of the total bets placed.
In January 2022, the property witnessed a 10% growth in its market share of the DC area. Additionally, it successfully processed nearly $9.2 million worth of bets during the same month.
GambetDC’s market share dropped by 10.4% from the previous month. In February, it received bets totaling $3.9 million, a decrease from the $5.7 million it received in January.
The significant decline in market share experienced by the only online business in the area can be attributed to a mishap during one of the largest sports events of the year. When the Super Bowl took place, all Apple users faced a widespread outage due to a glitch that went unnoticed by a third-party vendor, impacting iOS devices.
Had the software been operational during the game, it is highly probable that DC bettors would have placed a significant number of in-game bets, resulting in an increase in the overall figures.
Market shares for both Grand Central and BetMGM experienced marginal increases.
Sports betting handle goes up, revenue falls
Although there was a 2.5% rise in handle, the hold percentages experienced a significant decline, leading to a drastic decrease in gross revenue for the operations.
Each operator experienced a significant decline in their hold percentage, with Caesars nearly facing a month of losses as it recorded a 0.54% hold. To put this into perspective, the national average typically ranges between 5% and 8%.
Caesars earned a meager $60,924 from the $11.3 million that was bet.
In February, BetMGM witnessed a decline in its hold percentage from 7.8% in January to 5.5%. Similarly, GambetDC saw a decrease from 16.6% to 11.2%. BetMGM’s handle resulted in a profit of $189,576, whereas Gambet achieved gross revenue of $440,409.
However, Grand Central experienced a slight increase from 11.8% to 12.4%. Nevertheless, its revenue figures actually declined on a monthly basis due to a decrease in handle from $597,353 to $399,554.
March sports betting calendar is prime for a continued rebound
If GambetDC can resolve its problems with Apple users, the market is likely to experience a surge in March. The commencement of March Madness this week will attract a large number of sports bettors to the local sportsbooks.
With a packed sports schedule like the NCAA tournament, the unparalleled convenience of online betting is expected to attract a multitude of users to the website, resulting in a surge of activity.
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