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US – Appeals Court kicks out claim over Intralot’s award of Washington D.C. sports betting contract

By - 4 November 2020

The appeal from Dylan Carragher, a Washington D.C. businessman, contesting the $215m sports betting contract awarded to Intralot has been rejected by the appeals court.

Carragher claimed the sole-source contract violated the federal Home Rule Act and the D.C. Procurement Practice Reform Act of 2010 in bypassing the tender process.

The D.C. Court of Appeals ruled October 22 however that the D.C. Superior Court ‘dismiss the suit for lack of standing.’

The court said Carragher wanted to launch his own ‘online sports betting platform designed to compete in D.C.’s sports wagering marketplace,’ but ruled he had ‘not suffered any injury traceable to the illegality he alleges, as that marketplace does not exist.’

“Nor would one have emerged in the event the District accepted competitive bids for awarding a contract to operate its own platform,” the court ruled. We held that failure to generate tax revenue did not give rise to municipal taxpayer standing because it involved no ‘misuse or misappropriation of’ municipal taxes, so that the plaintiff’s suit intruded ‘into the political issues of revenue collection.’ So too here.”

Carragher’s attorney, Donald Temple said: “The only thread of public accountability has been cut. Sadly, the government is sanctioning this behaviour. We are carefully pondering our options.”

A Lottery spokesperson said: “The Lottery is committed to maximising revenue generated for the District through the responsible management and sale of innovative and entertaining game offerings. We are pleased with the judge’s decision and are fully focused on implementing the programs and initiatives under the contract. GambetDC is steadily generating revenue for the critical services and we expect those funds to continue to increase.”

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