D.C. Attorney General Brian Schwalb is intensifying scrutiny on Intralot, the Greek company behind Washington, D.C.’s sports betting operations, by demanding key documents as part of a broader investigation into the management of the city’s sports betting contract. This inquiry emerges as the contract approaches its expiration, amidst allegations that the company has not fulfilled its obligations under the deal, which has been fraught with controversy since its inception five years ago.

Intralot has been under fire for allegedly failing to properly manage the sports betting services, a situation that has not only affected the expected revenues but also raised concerns about the contractual commitments being unmet. Particularly, Intralot has been accused of not adhering to the district’s Certified Business Enterprise requirements, which mandate significant participation by local, small businesses in major contracts.

The investigation by AG Schwalb’s office, revealed through recent court filings, aims to address these issues directly, according to Washington City Paper. These filings suggest that the probe is focused on potential violations of “false claims” laws, which involve entities seeking compensation from the government for work that is either not performed or is substandard. Given Intralot’s pivotal role in D.C.’s sports betting and lottery operations, the outcome of this investigation could have far-reaching implications for the company’s future in the U.S.

While Intralot also manages D.C.’s traditional lottery systems, these operations have not been subjected to the same level of scrutiny. However, the sports betting operations, managed through Intralot’s subcontractor, have been problematic from the start. Issues have ranged from poor system performance to compliance failures with local business engagement rules. Despite these challenges, Intralot was granted a one-year, $39 million contract extension last month, although the future beyond this period remains uncertain.

Open Market Approved

The D.C. Council’s recent decision to open the market to private sportsbooks marks a significant shift in the city’s approach to sports betting, moving away from the monopolistic model facilitated by Intralot. This shift could potentially alleviate some of the operational issues faced under Intralot’s management.

AG Schwalb’s move to demand documentation from Intralot is part of a broader effort to ensure accountability and transparency in public contracts, particularly in sectors as sensitive as gambling and betting. The sealed nature of the court documents and the AG’s office’s declined commentary add layers of complexity and intrigue to the ongoing proceedings.

As the city transitions away from Intralot’s services, the outcomes of this investigation will be crucial in shaping the future landscape of sports betting in D.C. They will also serve as a critical assessment of how public contracts are managed and how regulatory oversight is implemented in practice. The case could also set precedential values for handling similar contracts in other jurisdictions, making it a significant marker for the gambling and legal communities alike.