Washington D.C. Lottery’s sports betting app, GamBetDC, has cost the district an estimated $4 million (€3.65 million) during its first full year of operation.
According to the Lottery, GamBetDC lost millions throughout 2021 as a result of significant investment in marketing and lower-than-predicted revenues across the year.
Analysts had expected the app to generate revenues of $6.2 million (€5.67 million) in 2021 and some estimates predicted that this could rise to as much as $20 million (€18.3 million) in the coming years. However, thanks to a lackluster display in 2021 and criticism of the app and its technology, 2022 revenue predictions are now a much more modest $1.5 million (€1.37 million).
Washington D.C. Lottery's GambetDC Sports Betting App Loses Millions in First Year of OperationD.C. Lottery Director Frank Suarez has defended the district’s current mobile sports betting model saying:
“The model is a good one. Right now, compared to some of the other models, it’s set up to give you the most return on revenue. The way the model is structured is solid and it helps the District…drive local business and the economy. And so it is a solid model. We have to be very realistic abut the expectations of the revenue. We know a lot more know than we used to.”
Speaking of the poor revenue and previous estimates he added:
Washington D.C. Lottery's GambetDC Sports Betting App Loses Millions in First Year of Operation“The prior estimates were set with very limited data. You can look and see that for the District to get anywhere close to what the original [estimate was] we would have to multiply our population by ten times when you look at any jurisdiction making those numbers. That’s why you’re seeing such a big difference with our new estimates, because they are grounded in the learning we have and what we’re seeing across the country.”
