Many people are questioning how Intralot got the DC sports betting contract. In fact, this is the topic during the DC Council Committee of the Whole Wednesday. They want to find out how a Greece-based operator earned the right to the $215 million deal.
The contract gives the struggling operator the right to sports betting and lottery sales for the next five years. Previously, members of the council approved the framework pushed by Councilmember Jack Evans.
However, accusations of impropriety and political favoritism were made against Evans and other city officials. As a result, the council needs to decide whether to continue with Intralot or postpone the sports betting implementation. If it is the latter, then people can only bet on sports in the four approved venues during the launch.
DC Sports Betting Contract
Councilmember John Ray thinks that the sports betting component of the contract is a generous tip to the winner of the lottery contract. In addition, he said that there were several things he didn’t like about the proposed deal.
For one, Intralot’s financial status is unstable. In fact, all three credit bureaus downgraded the firm’s rating several times in the previous year. Ray said that it felt like the district is making a bad investment with Intralot. That’s why the committee should look at the contract. They should also read pay per head tutorials to learn more about the industry, instead of just letting big corporations offer sports betting in the district.
However, lottery officials have a different view of Intralot. They said that expediting the sports betting contract will put DC in line for a fast return on investment. For the DC Lottery, Intralot is the best sports betting software and platform. Although they called the deal fair, they presented proof that might seem the opposite.
For instance, the contract showed Intralot needed to earn $2.6 billion in total sports betting and lottery sales in five years to achieve their cap of $215 million. That amounts to 8.25 percent of the total sales.
However, the rate is higher than what the city currently pays. DC Lottery said that sports betting is the reason for the increase. In addition, a bidding process will delay the launch of sports wagering in the district by 18 to 24 months. Intralot claimed they can launch it by the first quarter of 2020. DC officials might not know about bookie PPH solutions, that can have a system up and running in no time.