Intralot, the former sports betting operator that once enjoyed a mobile monopoly in Washington D.C., is under investigation by DC Attorney General Brian Schwalb.
While filings with the D.C. Superior Court are sealed, Washington City Paper reports the Greece-based company is being investigated for possible violations related to “false claims” laws. The AG’s website says False Claims Act violations can “include contractors and grantees who seek to have the District pay for work that was not fully or properly performed.”
Intralot’s GambetDC app was highly criticized throughout its four-year run in the Washington D.C. sports betting industry.
Intralot’s rocky history in DC
Intralot received a $215 million contract in 2019 to be the district’s sole sports betting operator while also running the DC Lottery. The company’s lottery operations in the district are reportedly not a part of the probe.
The Washington Post began publishing investigative articles about Intralot soon after it received its contract in the nation’s capital city. The company debuted its sports betting app GambetDC in May 2020.
Intralot has dealt with a slew of complaints about the app since then. They included consistent underperformance, which led to negative reviews from D.C. lawmakers and the public. Councilmember Kenyan McDuffie voiced frustrations about the app in January.
“I have heard from many residents about the unease around the city’s woeful performance on sports betting. And I absolutely share those same sentiments. From issues around usability to customer service and seriously declining revenue, we know the current model simply is not working. These concerns have only grown over time.”
Other issues that plagued GambetDC included outages during a Super Bowl, not fulfilling the city’s “Certified Business Enterprise” requirements to award contracts to local small businesses, and questions surrounding the legitimacy of subcontractor Veterans Services Corporation (VSC).
A Washington Post report in 2019 revealed that outside of CEO Emmanuel Bailey, VSC had no employees. Its website listed executives that didn’t work at the company. VSC debuted its LetsBetMD in Maryland at the beginning of July.
Intralot’s D.C. sports betting monopoly ended in April when FanDuel took over as the sole operator. However, that was short-lived, as the city opened the market soon after, leaving the door open for other sportsbooks.
In the meantime, Intralot is still running the city’s Lottery services.
