D.C. Attorney General Launches Investigation into Intralot Sports Betting Contract

Attorney General’s Investigation

The investigation by D.C. Attorney General Brian Schwalb’s office, which was revealed through sealed court documents, focuses on potential violations of the District’s “false claims” laws, designed to prevent contractors and grantees from billing the city for work that was not properly performed or fully completed.

Intralot and its subcontractors have faced allegations of such misconduct since the company first secured the sports betting contract in 2019.

Although details of the investigation remain under wraps, the focus on false claims suggests that the AG’s office is scrutinizing the performance and fulfillment of Intralot’s contractual obligations.

Background of the Controversial Contract

Intralot’s management of D.C.‘s sports betting program has been controversial from the outset. The company won the contract under contentious circumstances, and since then, its operations have been plagued by criticism and scrutiny.

City agencies have flagged numerous issues over the years, including potential violations of procurement laws and the company’s struggles to comply with the city’s Certified Business Enterprise (CBE) requirements.

One of the most contentious aspects of Intralot’s contract has been its relationship with Veterans Services Corporation (VSC), a small firm led by political insider Emmanuel Bailey.

VSC’s role in the contract has been questioned by lawmakers, with some suggesting that the firm lacked the capacity to fulfill its responsibilities, and was included in the deal primarily to satisfy CBE requirements.

Intralot has attempted to remove VSC from the contract, but city officials have resisted, leading to accusations that political interests were being protected.

The timing of the investigation is particularly significant as D.C. moves toward opening its sports betting market to private operators.