D.C. government officials have confirmed that they have lowered their expectations from the newly regulated sports gambling market.
The officials have lowered their revenue expectations from sports gambling in the next fifteen months by nearly $16 million, reports the Washington Post.
Following the US Supreme Court’s decision which legalized sports betting last year, the lawmakers approved a sports betting bill along with few other US states. However, they are yet to launch sports betting operations in the state.
Beth Bresnahan, director of the D.C. Lottery, confirmed that the state has revised its revenue projections in regards to sports gambling.
Answering a question of Washington Post’s representative he said that the District’s sports betting operation is now expected to earn just $750,000 during the current fiscal year — which ends Sept. 30 — and generate $17.1 million during the next fiscal year.
“We did not have the capability to launch the platform without a contract,” Bresnahan said.
“There are questions about the rosy forecast that the CFO gave us and the reality of this contract,” said D.C. Council member Elissa Silverman (I-At Large). “We have now found out that the CFO and Intralot’s forecasting was, I would say, overly optimistic.”
This is not the first time aa state has to revise its revenue expectations from legalized sports gambling. Earlier Rhode Island, had to slice the revenue expectations by half.