The D.C. Council has imposed a $5 million fine on Intralot, the Greek gaming company contracted to manage the District’s sports betting operations.
This decision comes after intense scrutiny of the city’s controversial $215 million no-bid agreement with the company. This led to allegations of non-compliance with contract terms and substandard service delivery.
Intralot’s small business subcontractor, Veterans Services Corporation (VSC) will also pay a fine of $1.5 million for its part in ‘deceiving the district’ and failing to deliver on its promise.
Non-compliance Allegations
Intralot secured the D.C. Lottery and sports betting contract in 2019 without competitive bidding, a move that was heavily criticized at the time. The company’s performance has since come under fire, with local officials and stakeholders expressing dissatisfaction over technical glitches and failure to meet specific contractual obligations.
The company was also held partly responsible for GamBetDC costing the district $4 million in its first year of operation.
According to council members, the fine was issued as a result of:
- Technical Failures: Frequent outages and usability issues with GambetDC which drew significant user complaints.
- Missed Revenue Targets: Underwhelming performance in generating anticipated revenue for the District, falling well short of projections.
- Lack of Transparency: Failure to provide timely and comprehensive reports on operations and financial performance, as stipulated in the contract.
During a heated council session on Tuesday, several members underscored the need for accountability.
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 was unanimously approved, some members hinted at the potential for further action, including a possible reevaluation of Intralot’s contract if performance does not improve.
In a statement announcing the penalties Attorney General Schwalb said:
“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. 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.
My office will continue to enforce the False Claims Act to root out contracting fraud, hold accountable anyone who tries to get over on the District and its taxpayers, and level the playing field for law-abiding companies seeking to do business with District government.”
Intralot responded to the council’s decision in a statement, acknowledging the challenges but emphasizing efforts to address them.
“We remain committed to improving our operations and restoring trust with the District.”
In 2024, Intralot partnered with FanDuel as a subcontractor following the underperformance of its in-house app, GambetDC. Shortly after, the DC Council decided to open the market in the district.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.