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Washington DC’s Attorney General, Brian Schwalb, has initiated an investigation into the city’s lottery and sports gambling contract, which has been the subject of controversy since its inception. In 2019, the city awarded the contract to Intralot, but after failing to meet revenue expectations, third-party platforms like FanDuel stepped in to take over in 2024.
Intralot has managed DC’s traditional lottery since 2009, but its venture into sports gambling faced setbacks. In 2019, the company was granted a $215 million no-bid contract by the DC Council to operate sports betting through the GambetDC app. However, the app never lived up to its revenue projections. Despite being a key part of the city’s gambling expansion, GambetDC struggled to generate significant returns.
In fact, when FanDuel replaced GambetDC in April 2024, it achieved more revenue for the city in its first month than Intralot’s app had brought in during the entire previous year. This stark contrast in performance raised concerns, leading to Schwalb’s investigation into whether the contract was properly executed and if any potential violations occurred.
Schwalb’s office began requesting information from Intralot in the summer of 2023. While both Intralot and the Attorney General’s office have kept the details of the investigation under wraps, the investigation could lead to civil cases against Intralot or one of its subcontractors in the district. The ongoing probe coincides with other high-profile investigations in the city, including the case of Council member Trayon White, who is under scrutiny for bribery allegations, and the conviction of district contractor Allieu Kamara for fraud and bribery.
While it remains unclear whether Schwalb’s focus is primarily on Intralot or its local partners, the situation has raised questions about transparency and accountability in the city’s gambling contracts.
As the investigation unfolds, it highlights the ongoing scrutiny of city contracts in Washington DC, and the need for rigorous oversight in government dealings.