The contract allowing Greek gaming solutions supplier Intralot to provide sports betting services in Washington, D.C. is reportedly being investigated by an attorney general.
According to an Axios report, Attorney General Brian Schwalb’s office has initiated a probe into the district’s lottery and sports betting contract with Intralot, which previously held exclusive rights to both online and retail sports betting in D.C. The attorney general’s office requested information on the contract in 2023 and it is unclear whether Intralot is at the center of the investigation or if it is focused on a subcontractor such as FanDuel.
Schwalb’s office is investigating 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, Allieu Kamara, has also pleaded guilty to offering bribes to a city employee for contracts.
Intralot’s journey in DC
In 2019, the D.C. Council agreed to a five-year, $215 million contract with Intralot for the gaming company to power the district’s sports betting platform, GambetDC. The platform, by requirement, secured a partnership with local firm Veterans Services Corporation. Earlier this year, the D.C. Council and Intralot agreed to a $39 million contract extension.
According to documents, VSC will receive $19.8 million of the total extension. The contract requires Intralot to provide lottery services but does not mandate offering sports betting.
GambetDC, which saw self-service kiosks deployed across D.C., received complaints from users in the district over its unfavorable odds, complexity and overall poor performance.
As a result, D.C. lawmakers pushed to create an open sports betting market in the district.
Major operators gain market access
The poor results of GambetDC allowed FanDuel to become a subcontractor of Intralot.
In April, the Office of Lottery and Gaming (OLG) approved FanDuel as a subcontractor providing the Flutter-owned brand with access to D.C. The OLG tapped FanDuel as an exclusive operator in D.C. before providing BetMGM and Caesars with market access.
Caesars would later secure an exclusive agreement to provide self-service betting kiosks in D.C. replacing GambetDC’s retail products. Earlier this week, Caesars launched its kiosks at 48 local businesses across D.C. The businesses include BP, Food Barn, Shell and Citgo.
