Intralot Betting Contract in DC Faces Scrutiny from AG

After years of struggle and inability to meet revenue projections in Washington DC, GambetDC, the sole sports betting application in the jurisdiction until recently, was replaced by FanDuel earlier this year. The debut of the popular brand in April represented a landmark moment for the market as it was able to record more revenue in its first month than GambetDC in a year.

Attorney General Looks Into Intralot

While the introduction of FanDuel helped kickstart the market in Washington DC, media reports suggested earlier this year that Intralot, GambetDC’s operator, may be facing legal scrutiny in light of its $215 million contract in Washington DC.

Now, as announced by Axios, citing sources close to the matter, DC Attorney General Brian Schwalb’s office is looking into Intralot’s betting and lottery contract. While the identities of the two sources were not disclosed, they are reportedly aware of the investigation but are not permitted to publicly disclose any information.

Reportedly, the Attorney General filed a request for information from Intralot last year. The Attorney General’s office is looking into the operator’s contract with Washington DC but not much else is currently known.

The Investigation May Focus on One of the Company’s Subcontractors

Even if Schwalb’s office is investigating Intralot’s contract, this doesn’t necessarily mean that the operator may be taken to court. Moreover, the requested information may involve some of Intralot’s subcontractors, rather than the company itself.

To develop GambetDC, the operator was required to hire the services of a local company. As a result, Intralot turned to Veterans Services Corp, a company run by Emmanuel Bailey, a DC insider and businessman from Maryland.

Despite initial projections, GambetDC failed to meet the estimated revenues continuously. Further concerns about the mobile betting app were raised in light of the phenomenal success in the first month of FanDuel’s launch in Washington DC.

This summer, Washington DC opened its online sports betting market in a move that saw Caesars Sportsbook and BetMGM join FanDuel in the jurisdiction. The launch followed a minor hiccup as the operators had to wait for the ratification of the DC’s fiscal year 2025 budget.

Per the changes to the betting vertical, up to six mobile betting operators are permitted to operate in DC’s market. This move is undoubtedly going to make the betting market more competitive while bringing a range of offers to bettors and sports fans alike.