A D.C. Superior Court judge extended a temporary restraining order blocking the $215 million contract to develop and operate the mobile gaming app as well as operate the D.C. lottery from taking effect.
A software developer is suing the city for awarding the contract without putting it up for a competitive bid.
The judge extended the restraining order to give attorneys on both sides time to prepare. The two sides are back in court Oct. 18.
The judge also exempted the lottery operations part of the contract from the restraining order so lottery sales aren't affected while the sports betting dispute is decided.
D.C. officials hoped to have the app ready by January. Sports betting rooms at the city's sports venues are not affected by the restraining order and could be up and running by the end of the year.
The D.C. Council voted to award the contract to Intralot, the company that currently operates the D.C. lottery, without allowing any other companies to bid on it.
The restraining order prohibits the District from making any payments to Intralot until the matter is resolved.