The former exclusive provider of regulated sports betting in Washington, D.C. is set to pay a hefty fine following the investigation of its licensing contract.
Intralot settled for $5 million payout related to deceptive behavior
Greek gaming solutions supplier Intralot has reached a $5 million settlement with the D.C. Council after lying to the council about collaborating with small businesses to secure an exclusive wagering contract in the district, per an announcement from DC Attorney General Brian Schwalb.
Intralot had vowed to work with Veterans Services Corporation (VSC), a local subcontractor, to land the deal but a probe by Schwalb’s office found that Intralot was working with another subsidiary to secure a contract in the district.
In 2019, the D.C. Council agreed to a five-year, $215 million contract with Intralot without accepting outside bids. The district’s bidding process, which typically takes three years and $61 million to complete, was expedited without outside bidders in order to bring regulated online wagering to D.C. before its neighboring markets Maryland and Virginia.
As part of the pact, Intralot vowed to let VSC handle just over half of the work needed to land a deal but the investigation found that Intralot and another subsidiary provided all the necessary resources instead of VSC. Despite VSC not holding up its end of the bargain, the subcontractor paid Intralot a portion of the funds it received from the deal with the district.
VSC also failed to allocate 51% of its revenue to other small businesses under the Small, Local and Disadvantaged Business Enterprise Development and Assistance Act.
As a result, Intralot pocketed millions of dollars leading to fines for the company and VSC.
“This is a warning to any company that tries to manipulate and exploit district contracting laws, especially laws intended to build the capacity of the local businesses vital to our economy,” said Schwalb. “Intralot and VSC’s sports betting deal was a sham from the start—an elaborate scheme to secure a lucrative, high-profile opportunity on a sole-source basis while circumventing the district’s small business contracting laws.”
Settlement terms for Intralot
Schwalb’s office has agreed to settle the violations with Intralot behind the $5 million fine with VSC also being ordered to pay the district $1.5 million. Under the terms of the settlements, Intralot and VSC must also report all contract and subcontract information to the district. Intralot is also barred from using any outside entity in any future contract.
The Attorney General’s office investigated the Intralot deal amid fallout over contracts in the district. The fallout includes allegations of a council member accepting $156,000 in cash for helping a businessperson in D.C. secure contracts with the city. An informant in the district has also pleaded guilty to offering bribes to a city employee for contracts.
Intralot’s presence in D.C.
The deal between Intralot and the district allowed the supplier to power GambetDC, which previously held exclusive rights to sports betting in D.C.
In 2024, Intralot subcontracted FanDuel after its in-house app, GambetDC, underperformed. Not long after that, the DC Council voted to open the market in the district.
Caesars, BetMGM, DraftKings, ESPN Bet and Fanatics also operate in D.C.
