Intralot and VSC face hefty fines after an investigation revealed they misled D.C. officials about local business partnerships
Washington: So, here’s the scoop. In 2019, Intralot and VSC were trying to convince D.C. officials to hand them a $215 million contract for sports betting. They claimed they’d partner with a local business, Veterans Services Corporation (VSC), to do most of the work.
But it turns out, they were just pulling a fast one. An investigation by the Attorney General found that Intralot was actually doing the work through one of its subsidiaries, while VSC was just taking a cut of the profits. They misled everyone about how much local work was really being done.
Intralot was already running the D.C. Lottery when they got the contract, and instead of going through the usual bidding process, the D.C. Council just handed it to them. They thought it would be quicker to get into the sports betting game before Maryland and Virginia could catch up.
But the whole thing backfired. The investigation revealed that Intralot and VSC inflated their spending on local businesses and submitted false documents to the D.C. Council. They even paid VSC’s owner a hefty sum for his involvement.
Now, both companies are facing the music. Intralot has to pay $5 million, and VSC owes $1.5 million to the District. They’ve also agreed to play by the rules in any future contracts. No more shady business!
