The DC sports betting saga continues, as the district attorney general’s office is reportedly investigating the DC Lottery contract with Intralot.
Axios DC first reported the investigation Monday. In August, LSR reported that the initial DC sports betting partner, Intralot, could be under investigation based on DC Superior Court filings for “false claim” violations.
Attorney General Brian Schwalb’s office declined to confirm, deny or comment on an investigation.
DC sports betting backstory
Intralot was selected to run the only mobile sports betting app available throughout the district in 2019 with a $215 million contract approved without a public bidding period.
The partnership, GambetDC, failed to meet revenue expectations and was regularly passed by apps like Caesars and BetMGM. Those sportsbooks were previously geofenced to a two-block span surrounding partner sports complexes.
Lawmakers were unimpressed with the sportsbook operation, as it disappointed consumers with over-juiced odds and a 2022 Super Bowl outage.
“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,” Councilmember Kenyan McDuffie said during an oversight hearing in January. “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.”
Expanding DC market
Earlier this year, FanDuel replaced Intralot and GambetDC as the DC Lottery partner. The DC Office of Lottery and Gaming forced the change because of Intralot’s underperformance. According to Axios, FanDuel handled $6 million in bets during its first week, more than GambetDC averaged in a month.
In June, the DC Council passed its budget, allowing up to seven commercial operators to offer betting district-wide through partnerships with sports teams. Previously, they could only operate within a two-block radius around a team’s stadium.
This fall, Caesars took over the district’s in-person sports betting kiosks from Intralot. The kiosks are at 48 retailers.
There are now five mobile sportsbooks operating district-wide:
- BetMGM
- Caesars
- DraftKings
- Fanatics
- FanDuel
