Report Shows DC Attorney General Investigating GamebetDC’s Failure

The drama surrounding the failed GamebetDC platform is not over quite yet.

A report from AxiosDC shows that Washington, D.C.’s Attorney General Brian Schwalb has opened an investigation into the sportsbook’s operator, Intralot. While details of the investigation are unknown, it is believed the AG’s office is looking to see if the operator delivered the work for which it was paid. 

The AG’s office will neither confirm nor deny the report. 

GamebetDC Failed on Several Levels

The DC Lottery awarded Intralot with a contract to operate the only online sportsbook available across the market. While the decision to create their own unique platform promised more money for the District, it proved to be a massive misstep.

GamebetDC was plagued by issues since its launch. The platform was not user-friendly and suffered from endless technical problems. The result was bettors decided to use retail or offshore sportsbooks, leading to the market failing to come close to reaching projected revenue totals. In fact, the Caesars retail sportsbook was beginning to out-earn GamebetDC in most months before the platform was shuttered. 

The DC Lottery decided to discontinue the platform earlier this year. The district then voted to expand the market, which almost immediately led to a massive increase in overall numbers. 

DC Lottery May Also be Investigated

Intralot may not be the only subject of the AG’s investigation. While there are no firm reports, many believe the DC Lottery will be forced to answer some difficult questions. The group is in charge of launching and regulating the industry.

When the DC Lottery awarded Intralot the contract to run the District’s sports betting market, they did so without bidding it out to other operators. That will surely raise red flags with the AG, who will want to know how they selected the embattled operator. 

DC Market Growth Continues

When DC decided to ditch its troubled platform, it signed a deal to allow FanDuel to become the sole operator. The market’s numbers immediately got a significant boost, showing just how much GamebetDC cost the District in tax revenue.

FanDuel’s run as the sole operator only lasted a few months. The DC Council voted to expand the market further, allowing DraftKings, Caesars, BetMGM, and Fanatics to launch their platforms. October was the first full month where all five were live, resulting in a record-high handle of $65.8 million.

FanDuel’s head start has given them the vast majority of the market share, blowing even DraftKings out of the water.