D.C. Councilman Jack Evans, who has been at the forefront of fast-tracking a brick-and-mortar sports book in the nation’s capital, was removed from a public roundtable discussion on the proposed $215 million no-bid contract to run the new sports betting program through the D.C. Lottery.
Evans was a champion of legalizing sports betting in D.C. as chairman of the council’s Committee on Finance and Revenue, taking a lead role in bypassing competitive bidding in response to the desire of the city’s Office of the Chief Financial Officer. The conflict arose when it was revealed that N. William Jarvis, Evans’ partner in his consulting business, was a lobbyist for DC09, the local company that partnered with Greece’s Intralot to provide the sports betting platform and run the program foe the lottery.
“What was Councilmember Evans’ role in the (lottery) contract?” asked At-Large Councilmember Elissa Silverman, according to the Washington City Paper. “Does Mr. Jarvis’ involvement present a conflict of interest that he should have recused himself from the bill?”
“It does raise concerns if his business partner is representing the sports gambling industry,” added Craig Holman of the advocate group Public Citizen, “and that draws another conflict of interest, which seem to be rampant for Jack Evans. The mere fact that Jarvis was a business partner with Evans, he should have recused himself to avoid a conflict of interest.”
Also last week, Shane August, CEO of Virginia Beach, Virginia-based August Holding Corp. has founded a D.C.-based subsidiary company, Handle19 Inc., and plans to apply for a Class B sports wagering license under the district’s new sports betting plan, according to a report in the Washington Business Journal.
The D.C. Office of Lottery and Charitable Games, which is responsible for reviewing the applications and issuing licenses, recently released guidelines that prospective sportsbook operators must follow to be approved for a sports wagering license.
As a Class B operator, Handle19 cannot have a facility located within two blocks of Class A operators, a group that includes the Capital One Arena, Audi Field, Nationals Park and the St. Elizabeths East Entertainment and Sports Arena. Class B licenses cost $50,000 for five years. After a 30-day public review and public comment period on the guidelines, operators will be permitted to apply for their licenses. Sports wagering is expected to officially launch in D.C. by January 2020.
August, a former quarterback at Norfolk State University, is currently the sole employee of Handle19 as its president, but August Holding’s management team has helped prepare the company’s application.
