Maryland's lottery contract with Intralot has been terminated following a comprehensive review
In a surprising turn of events, the Maryland Lottery and Gaming Control Agency (MLGCA) has decided to rescind the lottery contract from Intralot due to allegations of failing to meet the minimum required percentage of subcontracting to local subcontractors[1][2]. This decision comes after a thorough review of the proposals, which is designed to ensure that all requirements are met before proposals advance[3].
Initially, Intralot had won the contract due to its technically sound and financially superior bid compared to its competitors[1][2][4]. However, the focus of the procurement issue was on the minority business enterprise (MBE) participation/subcontracting requirements, which are stringently enforced by Maryland’s independent lottery regulatory agency to promote local business engagement[2][4].
Despite Intralot's assertion that it allocated a higher percentage than required and provided detailed clarifications, the MLGCA reversed the award decision upon further review and withdrew the contract offer[1][2]. This decision was partly influenced by past controversies involving Intralot’s business practices in other jurisdictions, such as a $6.5m settlement for deceiving city officials in Washington, D.C., while serving as the monopoly sports betting operator[2].
In response to the decision, Intralot has announced its intention to pursue legal action to protect its interests, affirming its bid’s compliance and financial advantage for Maryland[1]. The company also claimed that the Commission was aware of the identity and role of its subcontractors[1].
The tender remains ongoing, and a final decision has not been made yet[5]. The State of Maryland stands to lose a substantial financial benefit if Intralot's bid is not accepted[6]. Scientific Games, the second-ranked bidder, has become the recommended offer following the review[5].
References:
- Baltimore Business Journal
- Washington Post
- Maryland Lottery and Gaming Control Agency
- Maryland Department of General Services
- Washington Times
- Baltimore Sun
The Maryland Lottery and Gaming Control Agency (MLGCA) withdrew the contract from Intralot, the gaming operator, due to inadequate subcontracting to local firms, breaking the MBE participation requirements. This decision follows a review, designed to ensure all requirements are met before proposals advance.
Intralot's bid was initially chosen for its technologically sound and financially superior proposal, but the focus was on meeting the minority business enterprise (MBE) participation/subcontracting requirements to promote local business engagement.
Intralot contested the decision, claiming they allocated more than required and provided clarifications, but the MLGCA reversed upon further review. Past controversies involving Intralot's business practices in other jurisdictions, such as a $6.5m settlement for deceiving city officials in Washington, D.C., served as influencing factors.
Scientific Games, the second-ranked bidder, has become the recommended offer, and the tender remains ongoing, with no final decision made yet. The State of Maryland may lose a substantial financial benefit if Intralot's bid is not accepted.
