Lottery company Intralot mulling over potential lawsuits following Maryland's annulment of their $260 million contract.
The Maryland Lottery and Gaming Control Agency (MLGCA) has made a surprising U-turn in its decision regarding the preferred bidder for the ten-year, $260 million Maryland Lottery contract. Initially, Intralot was chosen as the preferred bidder, but a review of the bidding process concluded that the agency's original choice was incorrect.
The MLGCA's review found that Intralot's proposal did not meet the minimum required ratio of local subcontractors, a key eligibility criterion for the contract. This revelation led to the agency reversing its decision and expressing a preference for Scientific Games instead. However, it's important to note that a final decision has not yet been made.
Intralot, on the other hand, contests this reasoning, stating that it had exceeded the local subcontractor requirements. The company also emphasises that its bid was financially superior, significantly outperforming the second-best offer, including that of Scientific Games.
The contract involves providing self-service vending machines, counter terminals, and various software solutions. Intralot was chosen for this task due to its expertise in these areas.
The MLGCA had initially communicated to all applicants that they were compliant with the eligibility rules. Intralot was told that it was compliant, but the issue that arose was not meeting the minimum necessary ratio of local subcontractors.
This unexpected reversal has led Intralot to consider legal action against the agency, disputing the grounds for the U-turn and emphasising the agency’s prior communication about eligibility compliance. Intralot views this development as a "great surprise".
Despite the MLGCA's current preference for Scientific Games, it has not made a final decision on the Maryland Lottery contract. The situation remains in flux, with Intralot weighing its options and potentially seeking legal recourse.
[1] Source: Baltimore Sun [2] Source: Washington Post [3] Source: Gambling Compliance
[1] The ongoing dispute between the Maryland Lottery and Gaming Control Agency (MLGCA) and Intralot, a major player in the casino-and-gambling industry, centers around the Finance department's review of the bidding process for the Maryland Lottery contract.
[2] Intralot, once the preferred bidder, has expressed disagreement with the MLGCA's reasoning, asserting that its proposal met all local subcontractor requirements and its financial bid outperformed competitors, including fellow gambling trends company Scientific Games.
