Intralot Fined $5M In DC For Handling Of Sports Betting Contract

Intralot, a Greek gaming solutions provider, has agreed to pay a $5 million fine to the District of Columbia following an investigation into the handling of its sports betting contract. The settlement, announced by DC Attorney General Brian Schwalb, stems from accusations that Intralot misrepresented its collaboration with local businesses to secure an exclusive wagering contract in the district.

The controversy revolves around a five-year, $215 million contract awarded to Intralot in 2019 without a competitive bidding process. The deal was expedited to establish regulated sports betting in DC ahead of neighboring states like Maryland and Virginia.

Key issues identified in the investigation included:

• Intralot pledging to subcontract over half of the work to Veterans Services Corporation (VSC) but completing the work themselves.

• VSC failing to redistribute 51% of its revenue to other small businesses as required by local contracting laws.

• Funds being funneled back to Intralot, leaving local businesses excluded.

This arrangement violated the Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act, leading to fines for both Intralot and VSC. Attorney General Schwalb criticized the deal, calling it a “sham” and a deliberate attempt to bypass contracting laws designed to support local businesses.

Penalties and restrictions included:

• A $5 million fine for Intralot.

• A $1.5 million fine for VSC, with a requirement to report all future contract details.

• A ban on Intralot involving outside entities in future DC contracts.

The controversy also ties into broader concerns about corruption in the district’s contracting system. Allegations have surfaced of a council member accepting bribes to influence contract awards, while an informant admitted to offering bribes to a city employee to secure contracts.

Intralot had been the exclusive sports betting provider in DC, operating GambetDC, the district’s sole sports betting app. However, the app drew criticism for poor performance. By 2024, Intralot subcontracted FanDuel to fix the app’s shortcomings, and soon after, the DC Council voted to open the sports betting market to competition, signaling the end of Intralot’s exclusive role.

Summary: The $5 million fine against Intralot underscores DC’s efforts to crack down on abuses in its contracting process, while the opening of the sports betting market marks a shift away from exclusivity and toward broader competition.