DC lottery contract is the subject of a federal probe with numerous officials under scrutiny

A federal grand jury is investigating the awarding of the $38 million contract to run the District of Columbia lottery, and numerous officials are under scrutiny.

People familiar with the investigation say authorities are looking for evidence of crimes including bribery and steering of contracts. The people spoke on condition of anonymity because they've been instructed not to impede the ongoing investigation.

The lottery contract was awarded to Greek gaming giant Intralot in 2009. The process illustrates systemic problems that open the door for elected officials to play politics with the contracting process.

And the investigation raises further questions about corruption in the beleaguered city government. Mayor Vincent Gray's 2010 campaign is the subject of a long-running investigation, and two councilmembers resigned this year after pleading guilty to felonies.