Intralot Faces Investigation Laws & Regulations

Intralot Faces Investigation Over Sports Betting

By Lisa Spencer Senior Editor Updated: 21 August 2024

Lisa Spencer Senior Editor

As a Senior Editor at Betting.US, Lisa Spencer is a valuable member of our expert team. With a Master’s degree in Applied Mathematics, Lisa is adept in gambling theory and analyzing odds. She contributes by writing online sportsbook reviews and finding competitive markets to help our readers make an informed choice.

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It has been reported that the gaming company, Intralot, could face an investigation in Washington DC over its sports betting operations. The company, which powered GambetDC, could face issues as a result of investigations following a demand for documents from DC’s Attorney General, Brian Schwalb.

Washington DC has now opened up its sports betting market to private operators, but the company is still a major contractor following a license extension after its 5-year contract expired recently. However, Intralot remains under scrutiny following a troubled past in the state.

At present, it is not known just how comprehensive the investigation is likely to be, but it could present challenges for the Greek gaming company.

The Washington City Paper reported,

The AG’s office is demanding documents from Intralot as part of some sort of ongoing investigation, according to filings in D.C. Superior Court. But the court papers filed July 22 are under seal, as are any records Intralot provides, according to the judge’s Aug. 1 order.

According to reports, the investigation is likely to focus on the failure of the company and its subcontractors to carry out work that had been promised.

A Troubled Past in Washington DC

Until recently, Intralot was given the sole rights to run sports betting in Washington DC. Some officials had argued for many years that this monopoly shouldn’t be allowed to go ahead, but things have only changed recently after operators such as DraftKings and FanDuel were allowed to access the sports betting market in DC.

Intralot has already faced a lot of issues and scrutiny since it came into operation, with a range of issues arising. Many people stated that GambetDC did not live up to expectations, and this was something that was further reinforced by the range of issues experienced.

One of the problems outlined was that the sports betting app struggled in terms of increasing revenue for the District. In addition, there was uproar when its iOS app stopped functioning during the Super Bowl back in 2022.

Subcontractors Under Scrutiny

It is not just Intralot that is being investigated, according to reports, but also its subcontractors. Back in 2019, the Washington Post reported that one of Intralot’s subcontractors, the Veterans Services Corporation, had failed to live up to expectations in terms of performing the duties it had promised.

According to the Washington Post report, the CEO of VSC hadn’t actually got any employees, and this raised questions over whether the subcontractor could carry out the job. It was revealed that VSC now operates a sports betting app in Maryland, which generated only $130,000 in handle for June 2024. This was the lowest handle of all apps in the state.

At present, it is not known whether the investigation in Washington DC will include further scrutiny of VSC, or whether it will focus solely on the problems and operations linked to Intralot. Before Washington DC decided to open the sports betting market to other operators, Intralot ran the market as a sole operator for five years.