Audit Shows DC Sportsbook Intralot Shorting Local Businesses

• Intralot, the sports betting provider for GambetDC, has been audited and the findings are not good.
• Having been paid $215 million for a five-year contract by the DC Lottery, they’re coming up short in many areas.
• On top of that, five of the seven claims for local subcontractors are tied to Intralot which is a clear violation of the DC laws for sports gaming.

WASHINGTON – GambetDC, the sports betting platform run by the DC Lottery and provided by Intralot has been audited, and the findings show that the company has been falling behind on all of its requirements. Per the sports gaming laws of DC, Intralot is expected to spend 35% in local business expenditures, and instead, they’ve attributed less than 1% to local businesses in their first year as a sportsbook.

DC sports betting gave the lottery the monopoly on sportsbooks simply by allowing them to have full access throughout the District while other applications are accessible only in certain areas. Intralot was chosen through a no-bid situation for a five-year, $215 million deal with the lottery.

Due to the amount of money that the contract is worth, certified business enterprise (CBE) programs are implemented that require the company to subcontract work to local businesses in order to help employment numbers as well as give an uptick in taxes for the economy of DC. But Intralot has not held up their end of the deal on this.

What’s Happening With This Audit?

The audit’s findings stated:

“The CBE compliance rate is less than 1% one year into a five-year contract.”

The DC Lottery and the Department of Small and Local Business Development (DLSBD) both have zero documentation to that less than 1% and both believe it is the business of the other to stay on top of such details regarding the regulated sports betting market.

“Each agency contends it is the responsibility of the other to ensure CBEs are actively participating on the contract and performing meaningful work,” said the Office of The District of Columbia Auditor (ODCA).

What’s Happening Now?

Intralot provides mobile sports betting for the DC Lottery. However, they have not had anywhere near a banner first year going into their five-year contract because of the lack of interest in their platform and the COVID-19 Pandemic. It was projected that Washington would see $26 million in revenue within its first 12 months of sports betting being live. After two-thirds of the year went by, they made only $230,000 in revenue.

And while this is vexing for the industry and Intralot, the audit has found that the company claims to have hired and paid seven local businesses but can only provide documentation of payment to two of them. It was also found that Intralot illegally paid five companies (to make up the seven claims) with a DC09 that connects to their company which is not considered a local business as they were essentially paying themselves.

Of the two documented cases, one was paid $280,000 while another was paid $179,000. However, it was found that these businesses didn’t do the work that was recorded, hitting Intralot with yet another violation of city rules.

“These accusations are erroneous and inflammatory,” said Kristi Whitfield, Director of the DSLBD.

More on this story is currently in progress as fingers continued to be pointed in different directions and the people involved are passing the buck, but where those bucks are going is still anyone’s guess and the center of the issue itself.

News tags: COVID-19 | DC | DC Lottery | DC09 | Department of Small and Local Business Development | GambetDC | Intralot | Kristi Whitfield | Office of The District of Columbia Auditor | Washington