Intralot received the $215m contract to operate online sports betting in Washington, DC in 2019 without going through a competitive bidding process.
One aspect of the Greek-based company’s plan was to have the local small business Veterans Services Corporation (VSC) carry out more than half of the work and to collaborate with other similar entities as per the Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act.
Following an investigation by the Attorney General’s Office, it came to light that VSC wasn’t actually completing the work. An Intralot subsidiary was doing so and the company was getting paid by VSC.
Intralot now has to pay city authorities $5m and VSC owes $1.5m
Intralot now has to pay city authorities $5m and VSC owes $1.5m after reaching settlements. They also agreed to not try to hide such dealings if they bid for future contracts.
Talking about the case on Thursday, Attorney General Brian L. Schwalb said that it will be a “warning to any company that tries to manipulate and exploit District contracting laws.”
Intralot disastrously ran GambetDC between June 2020 and April 2024, having monopoly control over district-wide online sports betting. People in the district can now choose among several sportsbooks after the sector opened up in July.
