D.C. Council Fines Intralot $5 Million for Contract Bid ‘Lies’
The D.C. Council has delivered a substantial $5 million penalty to Intralot, the Greek gaming company responsible for managing the District’s sports betting operations. This resolution arises from intense scrutiny surrounding the city’s controversial $215 million no-bid agreement with the firm, which has faced allegations of failing to meet contractual obligations and delivering subpar services.
In conjunction, Intralot’s subcontractor, Veterans Services Corporation (VSC), has also been hit with a $1.5 million fine for deceiving the District and not fulfilling its commitments.
Allegations of Non-Compliance
In 2019, Intralot won the D.C. Lottery and sports betting contract without competitive bidding, a decision that sparked considerable backlash. Since then, the company’s performance has been met with widespread criticism, particularly regarding technical malfunctions and deficiencies in meeting specific contractual requirements.
Notably, Intralot has come under fire due to GamBetDC, which reportedly cost the District an alarming $4 million in its inaugural year.
Reasons Behind the Fine
The council’s decision to impose these fines has been underscored by several key issues, including:
- Technical Failures: The GambetDC platform experienced frequent outages and usability problems, resulting in significant user dissatisfaction and complaints.
- Missed Revenue Targets: Intralot’s performance in delivering projected revenues for the District has been severely lacking, falling well below expectations.
- Lack of Transparency: The company failed to provide essential operational and financial reports in a timely manner, as required by contract terms.
During a pivotal council session, members emphasized the importance of holding contractors accountable.
Councilmember Charles Allen stated:
“This fine sends a clear message that D.C. will not tolerate substandard performance, particularly in critical revenue-generating initiatives. Our residents deserve better oversight and outcomes from public contracts.”
While the fine received unanimous backing, some council members indicated that further action might be on the table, including a potential review of Intralot’s contract should performance not improve.
A Message to Contractors
The Attorney General, Brian Schwalb, reinforced the seriousness of these penalties with a strong statement:
“This is a warning to any company that tries to manipulate and exploit District contracting laws, especially those intended to empower local businesses vital to our economy. 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.”
Schwalb’s office vowed to enforce the False Claims Act rigorously to combat contracting fraud and ensure accountability for those seeking to exploit the District and its taxpayers.
Intralot’s Response
Intralot has acknowledged the council’s decision, recognizing the operational challenges while emphasizing its commitment to improvement. The company stated:
“We remain committed to improving our operations and restoring trust with the District.”
In a strategic move to address the shortcomings of its in-house app, GambetDC, Intralot entered a partnership with FanDuel in 2024. This development coincided with the D.C. Council’s decision to open the betting market in the district, reflecting a shift towards broader competition and improved service delivery.
The unfolding events in D.C. underscore the critical importance of accountability and transparency in the gaming industry, particularly as jurisdictions increasingly turn to sports betting as a means of generating revenue. As the market evolves, stakeholders must pay close attention to compliance and operational integrity to ensure long-term success.
