Intralot, VSC Settle DC Betting Fraud Probe with $6.5M Payment

The two companies deny any wrongdoing but agreed to settle the case with a total payment of $6.5 million to Washington DCImage Source: Shutterstock.com

In November, we reported that Intralot, the popular Greek gambling company, is facing scrutiny from Washington DC’s Attorney General Brian Schwalb. The review of the company’s betting contract followed years of underperformance of the jurisdiction’s sole sports betting app, GambetDC.

Now, an announcement by Attorney General Schwalb confirms that Intralot and its subcontractor, Veterans Services Corporation(VSC), agreed to pay millions to settle allegations of deceiving city officialsto win and obtain payments under the District’s multiyear lottery and sports betting contract.

The Settlement Serves as a Warning

On Tuesday, Attorney General Schwalb confirmed that Intralot and VSC will pay the District a combined $6.5 millionto settle the aforementioned allegations. The total settlement cost breaks down to $1.5 millionpayable by VSC and $5 millionpayable by Intralot to the District. It’s important to note that the two companies did not admit any wrongdoing.

Still, the Attorney General’s announcement reveals that the two companies “agree to accurately report contract and subcontract information in any future bids, contracts, or subcontracting plans with the District.” Furthermore, the settlement reads: “In any current or future District contracts, Intralot agrees not to use any entity to provide resources to a District business with which it has a subcontracting relationship, and VSC likewise agrees not to use any undisclosed resources provided to it by any other entity.”

“This is a warning to any company that tries to manipulate and exploit District contracting laws, especially laws intended to build the capacity of the local businesses vital to our economy.“

Washington DC Attorney General Brian L. Schwalb

Attorney General Schwalb said that the settlement can serve as a warning to any business that may try to exploit the District’s laws, especially those that seek to encourage the growth of local companies such as the SBE Act. In the words of the Attorney General: “Intralot and VSC’s sports betting deal was a sham from the start—an elaborate scheme to secure a lucrative, high-profile opportunity on a sole-source basis while circumventing the District’s small business contracting laws.” Finally, Schwalb reaffirmed that his office is prepared to investigate any suspected fraud cases and hold any company that breaches the established laws accountable.

GambetDC Was Replaced in 2024 by FanDuel

The settlement stemmed from an investigation by the Office of the Attorney General. The probe uncovered that Intralot and VSC joined forces to secure a no-bid, multiyear contract to offer betting across the District.

While the companies promised that VSC, which is a DC-based company, would be responsible for 51% of the work, the Attorney General’s probe alleged that in reality, the company subcontracted this work to an Intralot subsidiary. This also led to payments flowing from VSC back to Intralot.

Promising a higher percentage of return from sports betting, also known as hold, Intralot rolled out GambetDC, DC’s sole sports betting app. However, the app struggled considering that the high hold demanded unattractive odds. GambetDC’s unsatisfactory performance resulted in its replacement with FanDuel’s app, marking its debut in April.