DC Superior Court Rules Against Intralot Sports Betting Injunction

  • DC Court Judge Campbell blocks Intralot betting injunction
  • DC Lottery says plaintiff’s claims were baseless
  • Intralot now has green light for sports betting contract

DC Superior Court blocks injunction against Intralot

The Washington DC Superior Court denied a request on Friday for a preliminary injunction that would have blocked a no-bid contract with Greek-based Intralot. The contract will allow Intralot to manage the city’s planned foray into online sports betting. The decision by Judge John Campbell allows the District to move ahead with the contract, although the lawsuit itself is still pending.

The District’s contract with Intralot had been on hold for several weeks as both sides made legal arguments. The lawsuit filed by Dylan Carragher, a DC resident and the founder of a sports-betting technology business, argued that the $215 million contract over five years with Intralot violated federal law because District officials awarded it without competitive bidding.

The lottery’s deal with Intralot has ruffled feathers for a while, mostly because of the ‘unfair conditions’ under which it was awarded. Councilmember David Grosso was among the first officials to call out the lack of a bidding process in February, describing it as a giveway.

In its response to the request for an injunction, the DC Lottery said that Carragher’s claims were “without basis” and that “the plaintiff falls far short in proving entitlement to such extraordinary relief”, Washington Post reports.

Carragher’s attorney, Donald Temple, said that he was disappointed and that an appeal was in order. “It’s clearly a disturbing opinion and contradicts the case law,” he commented. “The city should be concerned that if the case goes to an appellate court and Carragher wins, it loses the money it has paid to Intralot so far,” he clarified.

Arguing authority

Earlier this year, the DC Council narrowly voted to suspend competitive-bidding rules and allow Intralot, which already held the contract to operate the DC Lottery, to continue running the lottery and to also manage the city’s new online sports gambling.

The lawsuit claimed that by suspending competitive-bidding rules for the contract, District officials violated the Home Rule Act, which established local government in the nation’s capital.

Under the Home Rule Act, the District’s chief financial officer is to carry out his office’s procurement of goods and services but must follow District procurement law. Temple argued that because the DC Lottery falls under the purview of the chief financial officer, the council was not entitled to exempt the contract from the procurement law.

The judge disagreed. “We can spend all day asking whether the council should have done it,” Campbell mused. “But it clearly and unquestionably was within the council’s authority to do that,” he stated.

DC Council Chairman Phil Mendelson said in a statement Friday that he was “glad the court has given this the green light.”

“The fact is that we’re going to see sports betting with a mobile application expand among many states over the next several years, and there’s no reason the District should be left behind,” he added.

A spokeswoman for the DC Lottery, Nicole Jordan, said in a statement that the agency is “fully focused on resuming the modernization of the Lottery and implementation of sports wagering in the District.”

Any further attempts by Intralot to launch its sports betting offer will come head-to-head with the suit against the organization. More developments will come in the following weeks.

George Hansen

Taking a liking to the occasional bout of slots, George used to moonlight as a roulette dealer, giving him a unique perspective into the casino world. From there he continued his journalist education and has been with us ever since a star-aligned graduation brought him and our team together.

Intralot’s Contract in Washington D.C. Suspsended Temporarily

As a result of suspicious awarding of a sports betting and lottery contract in February 2019, Intralot may stand to lose rights to operate in Washington D.C. A lawsuit has been brought up with a court and a temporary refraining order has been issued.

Intralot’s Contract with Washington D.C. Suspended

Intralot, a Greece-based lottery operator, has had its contract as sports betting and lottery vendor suspended by a court in Washington D.C. The premises on which the contract has been suspended is a likely violation of federal laws and should the legal motion be successful, it would possibly overturn the deal completely.

According to Dylan Carragher, the person responsible for the lawsuit, the deal violates the Home Rule Act that applies to Washington D.C. According to Carragher, the current deal deprives residents of the District of Columbia from the right to choose from sports betting products that are fairly priced and offer them better value.

As a result, a temporary refraining order or TRO has been issued, asking Intralot to suspend activities while investigation is ongoing. According to Judge Joan Zeldon – who ruled in favour of Carragher – there was a substantial chance that the lawsuit will be successful, possibly threatening the entire deal with Intralot.

Greasing Palms to Win Sports Betting Contracts

The dubious nature of the deal was brought into light when evidence surfaced that Intralot had provided the District’s CFO with a $109.7 million work contract as operators manager, putting all involved in a direct line of conflict of interests.

Speaking to iGaming Business, Intralot has denied all accusations, pointing out that:

“Intralot has been operating the D.C. Lottery under the existing partnership with great success for the past nine years. Having generated more than $500 million in net profit for the District of Columbia, it is one of INTRALOT’s most successful operations. The recently awarded contract was scrutinized and debated at great length before getting legislative approval on July 9, 2019. Regarding our local partner, VSC has met all of the requirements that the DC government has set forth, and is a contributor to the successes in this jurisdiction.”

However, VSC, the company in question, is run by Emmanuel Bailey who is also a big political sponsor. Fears that there may be some under-the-table power brokering came in February, when Intralot was awarded an extension of the contract without any public bidding process.

Councilman David Grosso called the deal outright rigged and a giveaway, pointing out that this way of handling the contract was in direct violation of established procedure.

Aran Malik

“Magic Malik”—as we like to call him—is not only a tech whiz but a wizard when it comes to getting obscure news hot off the press so we know exactly what’s happening and can explore and report it back to our growing and loyal readerbase.