Intralot, the Greek gaming company that previously managed the mobile sports betting application GambetDC in Washington, DC, may soon find itself under investigation concerning its administration of the app.
DC Attorney General Brian Schwalb has requisitioned documents from Intralot related to its over four-year tenure operating the much-criticized GambetDC app, suggesting that an investigation might already be underway. However, by a DC Superior Court order, filings on the matter remain sealed.
The deal with Intralot faced substantial criticism due to the non-competitive bidding process, with some DC City Council members alleging cronyism, reminiscent of the 2009 decision to award the company the city’s lottery contract.
According to Alex Koma of the Washington City Paper, it’s not immediately clear what specific aspects Schwalb is scrutinizing, but under DC city code, the attorney general holds the authority to investigate violations of “false claims laws.” Potential outcomes could include financial penalties against Intralot and even banning the company from future business within the city.
In an apparent acknowledgment of GambetDC’s underperformance, Intralot outsourced its responsibilities to Flutter Entertainment’s FanDuel in March. This shift yielded immediate results; within its first 30 days, FanDuel’s mobile app and website generated a handle of $30 million and $5 million in gross gaming revenue (GGR), marking year-over-year increases of 673% and 887%, respectively. The DC sports betting market has since welcomed more competitors.
Despite outsourcing, Intralot retains its contract with DC’s Office of Lottery and Gaming (OLG). The implications of a potential investigation are uncertain, but should Schwalb’s inquiry result in Intralot’s ousting, the OLG might simply form a new agreement with FanDuel.
Problems also loom over Intralot’s financial commitments to the city. The Washington City Paper reported that the DC Department of Small and Local Business Development requires companies from outside the region to allocate a portion of their large contracts to small, local businesses—a target Intralot has struggled to meet, partly attributing issues to underperformance by subcontractor Veterans Services Corporation.
As FanDuel invigorates the DC sports betting landscape, bolstered by the entries of BetMGM, Caesars Sportsbook, and DraftKings, GambetDC becomes a distant memory. Bettors, disenchanted with GambetDC’s inadequate technology and poor odds, and politicians, disillusioned with its revenue shortcomings, find solace in the new competition.
Still, Intralot is far from off the hook. Schwalb’s investigation could bring to light persistent issues in Washington, DC’s process of awarding lucrative contracts—a system long criticized and alleged to be riddled with backroom dealings and cronyism.
