Washington Attorney General Investigating GambetDC Sportsbook Operator?
As the District of Columbia expands its sports betting market, its previously exclusive sportsbook operator may be in hot water. Washington Attorney General Brian Schwalb is demanding Intralot provide documents. Intralot is the parent company of the ill-fated GambetDC sportsbook and runners of Washington’s traditional lottery. This is likely some form of an ongoing investigation involving the GambetDC product.
Washington Attorney General Sets Sights On GambetDC operator
According to reports broken by the Washington Post, details of the Superior Court filings in the District of Columbia are under seal alongside any records Intralot provides. What is known is that the website for the office of the Washington Attorney General notes a Code of the District of Columbia, revealing it’s a “false claims” law investigation.
GambetDC received scrutiny for its poor performance while holding the exclusive rights in Washington, D.C. Lawmakers called for the removal of GambetDC, eventually replacing the app with FanDuel before opening Washington, D.C. to more sportsbooks. The market immediately saw a betting activity and revenue boom after GambetDC lost its exclusivity in the district.
What Repercussions Can Intralot Receive
According to the AG’s website: “OAG can bring court actions against those who violate the False Claims Act by making false claims to the District Government for the purpose of improperly obtaining or retaining government funds.” This includes contractors and grantees paid by the district for work not properly performed. The response to GambetDC puts Intralot in that very category.
The AG could pursue financial penalties against Intralot as a result. Intralot could also be prohibited from receiving another contract with the city. While there is no certainty as to what the investigation is regarding, a few violations are of note if it is about GambetDC’s poor performance.
The Department of Small and Local Business Development sent numerous letters to Intralot informing them of violating the “Certified Business Enterprise” requirements. Out-of-town companies that receive big-city contracts are to work with local businesses. Intralot received a $215 million sports betting contract with Washington, D.C. Intralot stated they could not manage the spending due to the failures of subcontractors, Veterans Services Corporation.
Time will tell if the investigation by AG Schwalb results in any penalties to Intralot.
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