Intralot to Pay $5 Million Over DC Sports Betting Contract Fraud


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DC sports betting

Intralot, the Greek gaming operator formerly responsible for Washington DC’s sole sports betting app, has agreed to a $5 million settlement with the district’s attorney general.

The settlement resolves allegations that Intralot and its subcontractor, Veterans Services Corporation (VSC), misrepresented their compliance with DC sports betting and contracting laws designed to benefit local small businesses.

VSC will also pay a $1.5 million fine. Neither party admitted to any wrongdoing as part of the settlement.

Investigation findings

An investigation by the DC attorney general’s office found that in 2019, Intralot and VSC conspired to win a sole-source contract. It was awarded without competition from other bidders by falsely claiming VSC would perform 51% of the work using its own resources.

Instead, according to the investigation, Intralot used its subsidiary to complete most of the work while funneling payments through VSC to create the appearance of compliance. Over the course of the contract, the two companies submitted more than 100 fraudulent invoices and misrepresented the distribution of millions of dollars in taxpayer funds.

DC Attorney General Brian L. Schwalb called the scheme an “elaborate sham” and emphasized the importance of transparency and accountability in government contracting.

“This is a warning to any company that tries to manipulate and exploit District contracting laws, especially laws intended to build the capacity of the local businesses vital to our economy,” Schwalb said in a statement.

Intralot’s rocky DC sports betting history

This settlement also brings renewed scrutiny to GambetDC, which faced widespread criticism during its operation. The platform’s design and functionality were a frequent source of frustration for users, with high-profile crashes occurring during marquee events like the Super Bowl.

GambetDC ceased operations earlier this year and was replaced with districtwide access for BetMGM, Caesars and FanDuel in mid-July.

The district has expanded to five betting apps, which has translated to record betting and tax revenue. In August 2024 sports betting revenue was up 400% compared to when GambetDC was the sole option.

Photo by Shutterstock / RomanR