DC Attorney General Secures $6.5 Million Settlement in Lottery and Sports Betting Fraud Case

The District of Columbia is getting $6.5 million back after Attorney General Brian L. Schwalb uncovered a scheme involving lottery and sports betting contractor Intralot, Inc. and its subcontractor, Veterans Services Corporation (VSC). The companies were caught deceiving officials to secure a big contract by pretending to follow rules meant to help small businesses.

Back in 2019, Intralot and VSC made false promises to win a multimillion-dollar contract without competition. They claimed VSC, a certified small business, would handle over half the work, keeping the money in local hands. Instead, most of the work and funds went to an Intralot subsidiary, with VSC quietly funneling money back to Intralot.

“This was a blatant attempt to sidestep the rules and cheat the system,” said Attorney General Schwalb. “We’re here to make sure these laws are enforced and protect opportunities for local small businesses.”

Here’s what the settlement includes:

• $6.5 Million Fine: Intralot will pay $5 million, and VSC will pay $1.5 million.
• Commitment to Honesty: Both companies must stick to the rules and be upfront in future government contracts.
• Stricter Oversight: New measures are in place to prevent this kind of fraud from happening again.

This case is a reminder that the District takes small business laws seriously and won’t let anyone take advantage of taxpayers or local businesses.