D.C. Settles $6.5M Deal Over Fraudulent Contract

Washington, D.C. Attorney General Brian Schwalb announced a $6.5 million settlement with Intralot and Veterans Services Corporation (VSC) over allegations they defrauded the district to secure a no-bid contract for the GambetDC sports betting app. The investigation revealed that Intralot misrepresented its subcontracting plans, falsely claiming that VSC would handle 51% of the work while an Intralot subsidiary actually performed the majority of the tasks. This arrangement, described as a 'sham,' allowed the companies to circumvent local contracting laws intended to support small businesses. Intralot will pay $5 million, while VSC will contribute $1.5 million, but both companies deny any wrongdoing. Schwalb emphasized the settlement as a warning to others attempting to exploit D.C. contracting laws. The GambetDC app has faced criticism for its underperformance since its launch.