The DC Council has awarded exclusive rights for mobile sports betting to Intralot in Washington DC.
A majority vote passed Bill 23-25, despite three Council members expressing their concern.
Intralot already operates its lottery within DC and DC Lottery officials were keen to skip a bidding process and work directly with the firm.
The Council also voted for two emergency measures, which would enable the DC Lottery to start negotiations with Intralot as Mayor Muriel Bowser signs the bill.
These emergency measures would mean negotiations could begin without Congressional approval.
Council member David Grosso was against the decision for Intralot to be granted the contract. He suggested the supplier had made sizeable contributions to Council member campaign funds and did not see the sports betting contract as an emergency.
He said: “We previously noted the downgrade of Intralot’s Moody’s bond rating. That should be enough to show there is no emergency here. The only emergency is for Intralot. I will vote against this. It is not an emergency. It is a giveaway.”