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

Article by : Erik Gibbs Jan 15, 2025

• 
• 

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. 

Intralot had pledged to subcontract more than half the work to Veterans Services Corporation (VSC), a local business, as part of its agreement. However, an investigation revealed that Intralot and one of its subsidiaries carried out the work themselves, sidelining VSC.

Further scrutiny found that VSC, which was supposed to channel 51% of its revenue to other small businesses under local contracting laws, failed to meet this requirement. Instead, VSC redirected funds from the deal back to Intralot, allowing the gaming company to profit significantly while local businesses were left out of the process. 

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 arrangement, describing it as a “sham” and a deliberate attempt to bypass DC’s contracting laws designed to support local businesses. Schwalb emphasized that the settlement serves as a warning to companies attempting to exploit the district’s contracting system. 

Alongside the $5 million penalty for Intralot, VSC was ordered to pay $1.5 million and report all future contract details to the district. Intralot has also been barred from involving outside entities in any future agreements with DC.

The controversy surrounding Intralot’s contract is part of broader concerns about corruption in the district’s contracting processes. Allegations have surfaced of a council member accepting bribes to influence contract awards, and an informant has 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 faced widespread criticism for underperformance. By 2024, Intralot subcontracted FanDuel to address the app’s shortcomings. Shortly after, the DC Council decided to open the sports betting market to competition, signaling the end of Intralot’s exclusive rights.