Intralot Fined $5 Million for DC Subcontracting Violations
The drama surrounding the Washington, DC sports betting market continued with a Jan. 14 announcement that the DC Council has fined Intralot $5 million for violating small business subcontracting agreements in its sole-source sports betting and lottery contract.
In addition to Intralot, subcontractor Veterans Services Corporation (VSC) was also fined $1.5 million, bringing the total to $6.5 million. The fines were announced by the DC office of the attorney general (OAG).
The OAG said that when Intralot sought to secure the controversial contract in 2019, it did so with the premise that “VSC would perform 51 percent of the work – all with its own resources – and receive an equivalent percentage of the revenue.” DC law requires that 35 percent of large government contracts be subcontracted to local small businesses. The benefits to VSC and other local businesses was said to be among the primary reasons that the contract was awarded.
But that premise turned out to be false, investigators said. Instead, the two parties secretly agreed that “an Intralot subsidiary – not VSC – would provide most of the resources” for the contract. VSC then funneled back “much of the contract money Intralot had promised to spend subcontracting with VSC.”
According to the OAG, VSC owner Emmanuel Bailey was paid hundreds of thousands per year for his participation in the scheme. Both sides reportedly falsely inflated the amount of money spent, submitted false documentation and verification forms and misrepresented quarterly reports. In their settlement agreements, both Intralot and VSC denied any prior wrongdoing.
ESPN Bet is Coming to the Nation’s Capital
Penn Entertainment is to launch ESPN Bet in Washington, DC after securing market access in the U.S. capital through a new partnership with Monumental Sports & Entertainment (MSE).
According to a Jan. 14 statement, ESPN Bet will also become a sports betting partner of MSE and its various sports teams. MSE owns and operates NHL ice hockey team the Washington Capitals, NBA basketball team the Washington Wizards and the Washington Mystics of the WNBA. It also counts several multi-purpose venues among its portfolio of assets.
Commenting on the deal, Penn’s Chief Technology Officer Aaron LaBerge said it supports the ongoing strategy to expand ESPN Bet’s reach in the U.S.
The ESPN Bet brand officially launched in Nov. 2023. Since going live, it has established a presence in no fewer than 19 states across the U.S: Arizona, Colorado, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia. DC marks its 20th state.
Tennessee Posts Second-Best Handle Ever in December
Gross wagers on sports in Tennessee reached $572.7 million during December, the second-highest monthly amount on record for the Volunteer State.
December gross wagers beat the $495.1 million spent in the same month in 2023 by 15.8 percent. However, the total fell 4.3 percent short of the Tennessee record of $598.6 million set in Nov. 2024.
The Tennessee Sports Wagering Council (SWC) also said after $2.9 million worth of adjustments, gross sports betting handle was $569.8 million. This beats Jan. 2023 by 16.1 percent but is 4.1 percent behind November last year. Detail of these adjustments were not disclosed.
Some of the performance might be attributable to the University of Tennessee football team. The Volunteers finished as the ninth seed in the first-ever 12-team college football playoff. Their season finished with a 42-17 loss at Ohio State on Dec. 21.
Manning Brothers to Headline FanDuel Super Bowl Ad
FanDuel announced Jan. 10 that NFL legends Peyton and Eli Manning will headline the bookmaker’s Super Bowl campaign. The brothers, who won two Super Bowls each, will go head-to-head in “Kick of Destiny 3.” This will include a live kicking competition on FOX where each will attempt a 25-yard field goal. FanDuel is allowing users to make free picks on the contest for the chance to win bonuses.
“With the Kick of Destiny, we set out to make FanDuel a part of Super Bowl Sunday,” said FanDuel Executive Vice President of Marketing Andrew Sneyd said in a statement. “For year three, we’re raising the stakes by introducing a rivalry and a head-to-head Kick of Destiny competition. Peyton & Eli Manning will make history by competing against each other live for the first time in Super Bowl history. May the best Manning win!”
Kindbridge Offers Free Services for Those Impacted by LA Fires
Telehealth counseling provider Kindbridge Behavioral Health announced Jan. 15 that it is offering free mental health services to those impacted by the Los Angeles wildfires. The fires, which look to be among the costliest in U.S. history, have destroyed thousands of structures and displaced thousands of residents.
Kindgridge said the services were made possible through its partners such as “the Responsible Online Gaming Association (ROGA), EPIC Global Solutions, DraftKings, FanDuel, BetMGM, PrizePicks, Underdog, DruvStar, and Doura-Schawohl Consulting LLC.”
For those interested, visit kindbridge.com/wildfire-support or contact 1-877-426-4258.
