Problem-Plagued D.C. Sports Betting Saga Ends In SettlementCity Alleges Fraud, Companies Involved Deny Wrongdoing |
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The nation’s capital got on the sports betting bandwagon in May 2020, utilizing a single-operator approach that involved a contract with Greek gaming company Intralot. The resulting GambetDC product didn’t prove popular, however, and a dispute with the operator has now ended in a settlement.
Intralot’s contract ended in July, but allegations of fraud have arisen regarding the city’s initial Intralot deal. The company recently reached a $6.5 million settlement with the city. The city attorney general’s office alleged that the gaming company presented a plan to use a group called Veterans Services Corp. (VSC) to receive the majority of the profits and be heavily involved with the platform.
The city instead argues that the arrangement was meant to deceive D.C. officials and that another company owned by Intralot did most of the work and millions of dollars instead went to the Greek gaming company, according to the Washington Post.
“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,” city Attorney General Brian Schwalb said. “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.”
Details On The Settlement
As part of the settlement, neither Intralot or VSC admitted to fraud or breaking any laws. The companies noted that they indeed were working within the parameters of the contract with the city.
“The sole reason that VSC has entered into a settlement agreement with the Office of Attorney General is to avoid the exorbitant legal fees associated with defending a frivolous case where we strongly believe we would prevail on the merits,” VSC noted in a statement.
Intralot added that the company “strongly denies it engaged in any deception,” and that the city “grossly mischaracterizes” the facts in the case. Under the agreement, Intralot will pay the city $5 million with VSC chipping in another $1.5 million.
GambetDC never gained real traction and city officials and users complained of technical issues, poor odds, and other problems. The platform never met city revenue estimates and officials have since had FanDuel take over the contract. Other operators have also been allowed to launch in the capital, including BetMGM, Caesars, and ESPN Bet.
GambetDC also made some news in September 2023 when a report revealed that a former data scientist used betting kiosks that provided better odds than found online to win huge sums of cash. The case eventually led the company to limit wagers on the platform and drew questions about the operator’s ability to run a sportsbook.
As far as neighboring states go, Maryland sports betting had a record handle of nearly $6 billion in 2024, the second full year that included mobile wagering. Meanwhile, Virginia just reported record revenue numbers of $80.6 million for the month of November alone, resulting in $12.1 million in taxes collected.
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