Intralot Could Extend Its Stay in Washington, DC Beyond Expectations
The contract between Intralot, the company behind Washington D.C.'s underwhelming mobile sports betting app, and the city's lottery may be extended past its scheduled July end date. Due to an option in the original deal allowing for up to five more years, the lottery could renew their partnership with Intralot for another year, potentially delaying potential partnerships with more prominent national sportsbook operators.
However, the length of the extension is still undetermined.
Frank Suarez, head of DC Lottery, acknowledged this possibility at a recent city council meeting. In his opinion, renewing the agreement with Intralot would allow time for the lottery to find a new gaming company and eventually replace them. Notable operators like BetMGM, Caesars Sportsbook, and FanDuel operate retail sportsbooks in the district but cannot offer mobile betting there.
While some critics expressed dissatisfaction with the decision to prolong the agreement, DC Lottery knew its contract with Intralot was about to expire, leading to the current situation.
The lack of time for a competitive bidding process jeopardizes a smooth transition to a new operator, meaning Intralot's presence will be extended in the city against the wishes of many. According to Alex Koma of the Washington City Paper, this could require the city to spend months issuing a request for proposals, collecting responses, and choosing a winner.
Since its launch, GambetDC, under Intralot's management, has resulted in disappointing tax revenue for the city and numerous complaints from bettors during major events. Many D.C. bettors even continue to travel to Maryland or Virginia for mobile wagers.
When the city initially negotiated the $215 million deal with Intralot for the Gambet sports wagering platform, it faced significant criticism, as it was not put up for bidding. Since then, doubts surrounding this arrangement have persisted.
Instead of simply letting the contract run its course, Koma suggests allowing it to expire and finding a new operator, which he feels would be a more logical choice to usher in any meaningful improvements. But keeping the status quo could lead to a muted approach, as officials seem content to overlook this issue.
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