DC Attorney general investigates Intralot’s betting contract

Intralot‘s lottery and sports betting contract in Washington, DC, is now under investigation by the District’s attorney general’s office, according to a recent report.

Citing anonymous sources, Axios revealed on November 18 that Attorney General Brian Schwalb’s office requested additional information about the contract last summer. It remains unclear whether the investigation is focused on Intralot itself or a subcontractor. While Schwalb’s office has the authority to file civil lawsuits against companies, the purpose and timeline of the investigation have not been disclosed.

Intralot, a Greece-based company, has managed the DC Lottery since 2009. In 2019, the company was controversially awarded a $215 million no-bid contract to operate online sports betting in DC. However, the resulting platform, GambetDC, failed to meet expectations, underperforming in both usability and revenue generation.

Axios suggested that the investigation may involve Veterans Services Corp (VSC), a subcontractor connected to the original contract. Under the terms of the no-bid agreement, Intralot was required to collaborate with a local contractor. Based in DC and led by businessman Emmanuel Bailey, VSC is listed as the “Operations Manager for the Lottery & Sports Betting contract.”

According to Axios, Intralot has paid VSC $1.9 million annually and allocated $19.8 million of a $39 million contract extension signed in July to the company. Emails obtained by Axios show Bailey expressing surprise at FanDuel’s strong performance, reacting with a simple “wow” when presented with its financial results.