Posted on: December 28, 2022, 12:36h.
Last updated on: December 27, 2022, 06:50h.
The nation’s first sportsbook located on the premises of a strip club is set to open in the nation’s capital later this week.
The Cloakroom, a strip club in DC, is opening an on-site sportsbook called Over Under and a mobile sports betting app called the Cloakbook. The gentlemen’s club has partnered with Elys Game Technology for its sports wagering business. (Image: Cloakbook/Casino.org)
While many might wrongly assume that strip clubs and sports betting have gone hand-in-hand in Las Vegas for decades, Nevada gaming regulators prohibit gambling in gentlemen’s clubs and other risqué businesses. But in DC, the US capital’s sports betting regulations say nothing about sportsbooks and strip clubs coexisting.
DC’s Cloakroom, billed as the premier adult entertainment venue in the city, is set to be the first strip club with on-site sports betting in the US. The Cloakroom has teamed up with Elys Game Technology, a Toronto-based sportsbook firm that provides turn-key sports betting solutions for third parties like the Cloakroom.
The DC strip club plans to open its sportsbook on Thursday with a soft launch. Dubbed the Over Under Sportsbook Rooftop Lounge, the sports gambling facility will open to the general public on Friday.
Though Over Under will be located at the same physical address as the Cloakroom — 476 K Street NW — the two businesses will retain separate entrances. But that isn’t to say the two entities aren’t marketing their enterprises together.
Not only does Over Under offer a boldly unique experience complete with sports gambling, craft cocktails, dazzling LED lights, and a rooftop atmosphere, but its position above Cloakroom is a standout trait that separates it from the playing field,” an Over Under release declared.
“In the nation’s capital, there are sportsbooks, there are rooftops, and there are plenty of cocktail bars. But never before have all three been parlayed into anything quite like Over Under,” the sportsbook concluded.
DC Sports Betting
Gambling on professional and college sports in DC was legalized through Congress’ Sports Wagering Lottery Amendment Act of 2018. Since DC isn’t a state, but is chiefly governed by Congress, the local statute paved the way for legal sports betting in the district.
DC offers several different classes of sports wagering licenses. A Class B sports wagering permit allows businesses like the Cloakroom to seek retail sports betting privileges at a cost of $100,000 for a five-year term.
The Cloakroom and Elys submitted a Class B sports wagering application on March 24, 2021, under their joint entity 476K, LLC. DC’s Office of Lottery and Gaming issued 476K, LLC, its Class B sports wagering license today.
Retail sports betting services will be provided in the Over Under lounge. An online sportsbook mobile platform called the “Cloakbook” will also be accessible anywhere on the premises at 475 K St NW in Washington, DC.
Unique Regulatory Arrangement
DC allows for online and in-person sports betting. But the district maintains a monopoly on district-wide online operations through its controversial GamBetDC app. Mobile betting anywhere else is limited to a physical sportsbook’s land-based premises.
Elys firmly believes that this segment of retail sports betting within neighborhood establishments could become a key driver for local employment and economic recovery at the community level throughout the United States and Canada. This retail distribution model offers an alternative to mobile betting that has not commonly existed in the United States,” commented Michele Ciavarella, executive chair of Elys Game Technology.
The Cloakroom/Over Under location is Elys’ second sportsbook in DC. The company also handles sports wagering operations at the Grand Central Restaurant and Sportsbook that’s located north of Dupont Circle.