For decades, the Super Bowl has been one of the largest sporting spectacles that attract millions of viewers in the USA and across the globe. Moreover, the Big Game also attracts millions of people who, apart from enjoying the game, also wager on it to back their favorite teams for a chance at winning big. Betting companies with a presence in the various US states who have legalized sports betting relish the opportunity of great revenue streams during the Super Bowl.

So, during this year’s Super Bowl that pitted Cincinnati Bengals against the Los Angeles Rams, Gambet DC (the city’s only betting app) did not work on Apple phones and tablets. The fiasco meant that thousands of DC residents could not wager on the event for their chance to win. The failure of the app – which Intralot manages, also meant considerable losses in revenue for the DC lottery that it could have gotten had things gone smoothly.

Of course, such a mishap had to have significant ramifications for Intralot. In this case, Intralot paid out $500,000 to DC Lottery for the farce that cost it a lot of revenue. But what exactly led to the mess in the first place?

Events as They Unfolded on the Super Bowl Night

The Superbowl night might have spelled a nightmarish scenario for Intralot if a script was to be written about it. On the day of one of the biggest sporting events worldwide, Apple users of the Gambet app received a notification that the app was experiencing technical issues and that it would be unavailable after 4.15 pm. This was a little under two hours before the Super Bowl kicked off.

Instead, the DC Lottery put out a statement that wagers could hand in their bets through Gambet’s official website, its Android app, or they could do it physically at one of the 39 retail locations in the city. To try and lessen the tension, it also offered users a free $10 bet for inconveniences caused.

So, what caused the technical issues sighted by DC Lottery? The hitch, which caused the app outage on all iOS gadgets for close to 48 hours, reportedly stemmed from an update that wasn’t implemented as scheduled. Unfortunately, Intralot did not receive a software update from Apple in time to prevent this crisis from unfolding. It is reported that there were 30,000 registered users of the app by February, half of whom were Apple users. This means approximately 15,000 users were locked out of wagering for the Super Bowl.

In an address to the DC Council, Frank Suarez, the DC Lottery director, outlined how the half a million dollars received in compensation would be spent. He said that $65,000 would be used to cover lost bets during the football spectacle, and $6,300 would be used to replace the funds the DC Lottery used to calm down the angry users of the app by offering free bets. Finally, $42,8000 will be used to overcome the negative PR attached to the app due to this mishap.

Director Suarez discussed why the half a million payment was vital, stating that:

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“Being able to recoup what we believe we would have gotten in revenue was important, and then being able to have additional marketing funds for branding so we can reach out and acquire players, and I think that is a good amount for that. We’re very satisfied with the end result. You can’t measure reputational damage. But we did look at how much we would have lost in player registration and the lifetime value of that.”

A String of Woes for Gambet DC Right off the Bat

The latest mishap for Gambet has been one among a series of troubles that have cast a not-so-great spotlight on the betting app. For instance, there is an open admission by DC Lottery officials that Gambet has cost the DC Lottery $4 million in its first year of operation.

While other states are bringing in millions from sports betting, DC is losing it to sports betting. A month ago, Suarez informed the DC Council that he projects that GambetDC would generate $1.5 million for the city’s coffers. This is a far cry from the $20 million that legislators were informed was possible when they supported the exclusive provider contract Intralot was awarded for the jurisdiction’s sports betting market.

Even worse, that’s not the half of it. The app has also been poorly received, with downright horrible reviews being the order of the day. It has been called out for its unfriendly user interface, among other things, by its users. From users’ point of view, the GambetDC app is so bad that, as we speak, it currently has a dismal 1.5 stars rating out of the possible 5 stars from nearly 500 ratings on the Apple App Store. Suarez, however, promises that GambetDC will undergo a “complete revamp and overhaul of the interface for players.”

Additionally, from day one, the entire Gambet story kicked off on the wrong foot because of the decision to award Intralot the keys to operating the DC lottery’s sports betting operations without a competitive bidding process.

DC council member Elissa Silverman after the SuperBowl mishap, tweeted saying:

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“When 5 members, including myself, voted against this contract, we knew it was bad, but even I didn’t foresee it being this abysmal.”

 With other states progressing fast with sports betting, many are questioning whether it’s time for the state to open itself up to other betting apps.