Judge temporarily blocks Intralot’s sports betting contract

Sports Betting

A Superior Court judge granted a two-week restraining order Thursday on the District’s $215 million sole source sports wagering and lottery contract.

District resident Dylan Carragher filed a lawsuit Sept. 17 seeking the temporary restraining order, alleging the contract is in violation of the federal Home Rule Act and the D.C. Procurement Practice Reform Act of 2010.

Carragher, who created a web application for esports and sports wagering, believes the D.C. Council and the Office of the Chief Financial Officer illegally awarded Intralot the five-year contract by the bypassing of the procurement process.

“D.C. City Council does not have the independent authority to amend the Home Rule Act and to exempt the OCFO from its statutory obligations under said Act in order to non-competitively procure the aforementioned consolidated gaming contracts, “the complaint, filed in D.C. Superior Court, reads. “Defendant’s illegal procurement and contract award process, which includes the nullification of any and all contract appeals related to this procurement, preclude [Carragher], a D.C. resident and citizen, from participating in the online sports betting market created by the District’s new sports wagering laws.”

In February, the D.C. Council passed the Sports Wagering Procurement Practice Reform Exemption Act of 2019, which awarded Intralot the contract to operate the District’s sports betting platform. The council narrowly approved the contract’s final provisions in July in a contentious 7-5 vote.

Proponents of fast-tracking the procurement process argued it was critical for the District to beat Maryland and Virginia to market when it came to online sports wagering, whereas opponents were apprehensive of diving into a new industry without a more robust consideration of the potential effects on the city and its residents.

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