Intralot Fined $5 Million Over Fraud in D.C. Sports Betting Contract
Intralot has been hit with a $5 million fine after the D.C. Office of the Attorney General uncovered fraudulent practices tied to a major sports betting contract. The penalty puts an end to a controversial chapter for Intralot, whose GambetDC app has faced sharp criticism since its launch.
The Fraud Behind the Contract
Intralot and its subcontractor, Veterans Services Corporation (VSC), misled the D.C. Council to secure a $215 million, five-year contract for sports betting services. The companies claimed that VSC would handle 51% of the work and earn the same share of revenue. This promise allowed them to bypass a competitive bidding process.
In reality, Intralot’s subsidiary did most of the work, with VSC channeling funds back to Intralot—a clear violation of the agreement. The Office of the Attorney General uncovered the deception and imposed hefty fines on both companies to prevent future misconduct.
GambetDC’s Rough Run
Intralot’s problems didn’t stop with the fraudulent deal. Launched in May 2020, the GambetDC app quickly developed a poor reputation due to its clunky interface, unfavorable odds, and consistent failure to meet revenue goals. Despite lofty initial projections of $20 million annually, the app underperformed year after year.
By 2024, the Office of Lottery and Gaming (OLG) terminated its partnership with Intralot and replaced GambetDC with FanDuel Sportsbook, granting FanDuel sole citywide mobile sports betting rights at the time.
A New Era for Sports Betting in D.C.
FanDuel operated as D.C.’s sole mobile sports betting provider for several months. However, new provisions in the 2025 budget paved the way for up to six additional companies to enter the market, creating a more competitive environment.
Since then, several major operators have launched services:
- FanDuel Sportsbook: Now the leading operator in D.C., FanDuel offers a user-friendly experience and continues to dominate the market in revenue and bets placed.
- DraftKings Sportsbook: Entering the district in July 2024, DraftKings offers mobile betting but has no retail location in D.C.
- BetMGM: Also launched in July 2024, BetMGM provides both online betting and a retail sportsbook at Nationals Park.
- Caesars Sportsbook: Caesars, with its strong reputation, operates both online and in-person betting at Capital One Arena.
- Fanatics Sportsbook: The newest addition to D.C.’s market, Fanatics launched in September 2024, offering competitive promotions and unique features.
- ESPN Bet: Joining the market in January 2025, ESPN Bet focuses on online betting and partnerships with local sports teams like the Capitals, Wizards, and Mystics.
Several retail sportsbooks, such as Grand Central, Cloakbook, Sports & Social, and Ugly Mug, add even more options for bettors.
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