The online gambling proposal announced for the City of Washington, D.C. continues to face setbacks. First, the implementation of the proposal was deferred until a process of public consultation was conducted. Second, the consultation was deferred. Now there are allegations that a contract awarded by the D.C. Lottery was not completely legitimate. This newly uncovered information is expected to have an indirect effect on the online gambling proposal.
Discussion of the Investigation
A Washington Post columnist has been discussing at investigation being conducted by a Washington D.C. inspector into a $38 million contract being awarded to Intralot by the D.C. Lottery. The investigation began in July 2010 by the former Attorney General. The reporter links the contract to the secrecy surrounding the online gambling bill approval. He further states that it is clear that this entire operation is all about the money.
Procurement Laws
Originally, the Procurement Laws called for the contract to be given to a certified local, small and disadvantaged business. Unfortunately, it would be impossible to find a business that has the capabilities to operate an entire lottery system. Therefore, the small local company had to partner with a larger expert who would maintain all operational matters. Therefore, these dealings occurred in a secretive manner.
The article describes that the D.C. Lottery originally awarded the contract to Greek gambling company Intralot in December 2009. However, in July 2010, a representative from Ward 8 discussed in an interview that he told Intralot that the council would approve the contract only if the Greek company found a local partner. Therefore, they hired Veterans Services Corporation who received a majority stake in the $38 million contract.
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The connection to the online gambling proposal in Washington is as follows. The primary developer of the bill was an independent councilor who did not disclose he was employed by a specific legal firm. Therefore, many of the clients he represented while in the firm will greatly benefit from the legalization of online gambling in Washington, D.C. Therefore, it is likely this major conflict of interest will rise once again.
In an effort to create a regulatory system, the involved parties are clearly involved in scandal after scandal. This unacceptable behavior reflects poorly on the online gambling industry. Hopefully those involved in this misdealing’s will be removed for individuals who are ethically able to get the job done.
