The D.C. Attorney General’s office has launched an investigation into the city’s lottery and sports gambling contract with Intralot, the company behind the District’s first sports betting app. The probe is focused on the troubled contract, which has come under increasing scrutiny since its inception in 2019.
Intralot’s Performance Under Fire
When the District of Columbia awarded Intralot the contract in 2019, it was a groundbreaking move—bringing sports gambling to the city. But the execution has been far from smooth.
Early Struggles
The app, which was designed to serve as the city’s entry point into sports betting, faced significant criticism for its underperformance. It failed to meet revenue projections for the city and was widely panned by both users and industry experts.
Replacement and Fallout
In response to the app’s failure, D.C. officials made the decision to replace it earlier this year with more popular third-party platforms like FanDuel. Despite these changes, the investigation into the contract remains ongoing, as concerns about its oversight continue to grow.
The Investigation Unfolds
The attorney general’s office has been probing the deal for several months now, and sources close to the situation suggest that the investigation is examining the terms and execution of the contract.
Information Requests
Attorney General Brian Schwalb’s office reportedly began requesting information from Intralot in the summer of 2023. Sources with knowledge of the probe revealed that the inquiry is still in progress, though details remain scarce as the investigation is sensitive in nature.
Contract Details
One of the key issues under scrutiny is whether the terms of the contract were fair and whether the company met its obligations. The failure of Intralot’s sports betting app has raised questions about the company’s role in delivering on promises to both the city and its residents.
Legal and Financial Implications
The investigation is likely to have significant implications for both D.C. officials and Intralot, as any wrongdoing or contractual mismanagement could lead to financial penalties or the need for revised agreements.
Impact on Future Contracts
Should the investigation reveal any misconduct or mismanagement, it could have far-reaching consequences for future public-private partnerships in the District. As more states and cities expand into the realm of sports betting, transparency and accountability in such contracts are becoming increasingly important.
D.C. Sports Betting Market Shifts
The failure of Intralot’s app is part of a broader trend that has seen D.C.’s sports betting market face challenges from the outset.
Growing Competition
Now that FanDuel and other third-party platforms have entered the picture, the D.C. sports betting market is becoming more competitive, putting pressure on Intralot’s legacy system. This shift has not only undermined the city’s previous investment but also left residents wondering about the future of locally-regulated gambling operations.
What’s Next for the Investigation?
As the attorney general’s office continues to examine the contract, it remains to be seen what steps will be taken next. D.C. officials have yet to comment publicly on the status of the investigation or any potential outcomes, but the probe is undoubtedly drawing attention in legal and business circles alike.
