The post Capitals, Wizards Leaving D.C. Could Have Significant Impact On Sports Betting Market appeared first on SportsHandle.

Earlier this month, Monumental Sports announced plans to build an entertainment district in Alexandria, Virginia, that would be home to the NBA’s Washington Wizards and NHL’s Washington Capitals. The move would take the two professional sports franchises out of Capital One Arena in Washington, D.C.

“We are committed to providing world-class fan experiences while continuously evolving our teams, deepening community ties, and solidifying our role as leaders at the forefront of sports and technology,” Monumental CEO Ted Leonsis, who also owns the Wizards and Capitals, said in a statement. “The opportunity to expand to this 70-acre site in Virginia, neighboring industry-leading innovators, and a great academic partner, would enable us to further our creativity and achieve next-generation, leading work — all while keeping our fans and the community at the forefront of everything we do.”  

While hardly the focus of the proposed framework agreement, moving the two franchises outside the nation’s capital could have a significant impact on sports betting in the District. Caesars Sportsbook’s retail location at Capital One Arena is popular, generating a higher betting handle ($6.1 million) than GambetDC ($5.9 million) in November, despite Gambet having the most mobile access of any operator in D.C. 

Caesars Sportsbook’s mobile betting app can only be used within a two-block radius of Capital One Arena.

Potential impact

If the move to Virginia becomes finalized, Monumental hopes to keep Capital One Arena as a functioning venue. The company’s plan is to continue to host concerts, comedy shows, and other performances there, while also moving the WNBA’s Washington Mystics into the arena. 

Continuing to use Capital One Arena means Caesars could maintain its presence in the District, but the sportsbook would lose out on fans visiting the venue for Capitals and Wizards games. It could be especially challenging for the sportsbook to match its previous handle and revenue numbers if Capitals and Wizards games are replaced by non-sporting events. 

Are concertgoers as interested in visiting a sportsbook as professional sports fans? Mystics games certainly wouldn’t attract as many fans as Wizards and Capitals games combined, but could they attract enough sports fans to keep the sportsbook thriving?

The impending impact on not only Caesars Sportsbook, but also D.C.’s economic ecosystem, is to be determined. The arena likely wouldn’t open until at least late 2028, giving Caesars ample time to adjust to possible changes at Capital One Arena. It’s also possible the framework agreement will fall through if Virginia legislators don’t give the project the go-ahead.

“Anyone who thinks I am going to approve an arena in Northern Virginia using state tax dollars before we deliver on toll relief and for public schools in Hampton Roads must think I have dumbass written on my forehead,” Louise Lucas, president pro tempore of Virginia’s Senate, shared on social media Tuesday. 

Bigger decision comes sooner

While Caesars Sportsbook could be impacted by the Wizards and Capitals leaving Capital One Arena, there’s a more impactful and immediate sports betting decision looming in the District. 

GambetDC, the lottery’s sports betting platform powered by third-party provider Intralot, has been the subject of significant criticism since its launch. Gambet’s betting app often offers worse odds than national operators, a clunky user interface, and subpar customer service. 

Bettors in Washington have long called for a change to the sports betting market, as have some current and former D.C. Council members. The lottery’s five-year contract with Intralot is set to expire in July of 2024, meaning the council needs to decide in coming months if it wants to continue with GambetDC or consider allowing major operators like BetMGM and FanDuel access to the District’s mobile market. 

Sports Handle reached out to D.C. Council Chairman Phil Mendelson’s office for comment on the Intralot deal but didn’t receive a response. The status of the Intralot deal is an important decision that will shape the future of sports wagering in the nation’s capital, although council members like Mendelson have been largely silent on the issue in recent weeks.

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