Five Sportsbooks Face Lawsuit in Washington, D.C.
Five big players in the U.S. sports betting business: FanDuel, DraftKings, BetMGM, Caesars, and Fanatics, got slapped with a lawsuit in Washington, D.C.. As first reported by Next.io, the case started in D.C. Superior Court before shifting to the U.S. District Court for the District of Columbia.
Legal Challenge Hits D.C. Sportsbooks
The plaintiff, DC Gambling Recovery LLC, is throwing a curveball, arguing that the foundation of these sportsbooks’ operations in the District is shaky and possibly unconstitutional.
The beef centers on the Sports Wagering Lottery Amendment Act (SWLAA), which legalized sports betting in D.C. back in 2019. The plaintiff claims it’s a dud because of a tricky legal twist.
They point to the 2018 Supreme Court ruling in Murphy v. NCAA, which axed PASPA and let states greenlight sports betting. That call leaned on the Tenth Amendment, reserving powers not given to the feds for the states.
But D.C. isn’t a state, so, DC Gambling Recovery LLC argues PASPA’s ban still holds in the District, making SWLAA toothless and the sportsbooks’ bets illegal.
Unpacking the Lawsuit’s Angle
The lawsuit says these five sportsbooks, raking in solid cash from D.C. bettors, are running on a law that doesn’t hold water. FanDuel’s $29.7 million handle in May 2024 and DraftKings’ quick launch last July show the market’s hot, but now it’s under fire.
The plaintiff wants the court to check if SWLAA’s constitutional footing crumbles without statehood, potentially pulling the plug on these operations.
D.C.’s betting scene just ditched Intralot’s monopoly last year, opening the door for these heavy hitters after GambetDC flopped with lousy odds and tech glitches.
That shift, tied to the 2025 budget bill, was a fix for a system that couldn’t keep up, bettors were jumping to Maryland and Virginia for better action. But this lawsuit flips the script, suggesting the whole reform might rest on a faulty base.
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