Reversal of $260 million Maryland Lottery Contract Prompts Legal Threat from Intralot
Intralot Contemplates Legal Action Against Maryland Lottery Over Cancelled Contract
Intralot, a global gaming solutions provider, has announced its intentions to take legal action against the Maryland Lottery and Gaming Control Agency (MLGCA) following the cancellation of a $260 million, ten-year contract. The contract, which was initially awarded to Intralot, was set to operate lottery services for Maryland.
The cancellation of the contract was due to allegations that Intralot failed to meet subcontracting requirements, leading to a compliance review and the withdrawal of the contract [1][4]. Intralot, however, maintains that it has significantly exceeded the necessary local subcontractor requirement in the Maryland Lottery contract [5].
The statement from Intralot does not specify the ratio of local subcontractors that it claims to have exceeded, nor does it mention how the financial advantage of its offer was calculated [6]. The MLGCA is currently reviewing the bidding process [7].
Intralot's offer for the Maryland Lottery contract was initially chosen as it significantly outperformed the second-best offer [3]. The contract includes the provision of self-service vending machines, counter terminals, and various types of software [8]. However, the statement from Intralot does not mention any specifics regarding these aspects.
The MLGCA believes that Scientific Games may be the most suitable option for the contract, but a final decision has not yet been made [9]. The agency had previously told all applicants, including Intralot, that they were compliant with the eligibility rules [10].
It is unclear at this time what the resolution or further outcome of this legal consideration will be. The key reason for potential legal action is the contract's cancellation based on alleged subcontracting issues despite Intralot's initial approval and winning of the contract.
It's worth noting that other investigations and controversies related to Intralot, particularly in other jurisdictions such as Washington D.C., have surfaced, but those do not directly bear on the Maryland Lottery contract cancellation [2].
[1] https://www.baltimoresun.com/business/bs-bz-maryland-lottery-contract-20210720-qz75f6h75nb757zj765qv7c5qm-story.html [2] https://www.washingtonpost.com/business/2021/07/21/maryland-lottery-intralot-contract-cancellation/ [3] https://www.washingtonpost.com/business/2021/07/17/maryland-lottery-contract-intralot-scientific-games/ [4] https://www.baltimoresun.com/business/bs-bz-maryland-lottery-contract-20210720-qz75f6h75nb757zj765qv7c5qm-story.html [5] https://www.baltimoresun.com/business/bs-bz-maryland-lottery-contract-20210720-qz75f6h75nb757zj765qv7c5qm-story.html [6] https://www.baltimoresun.com/business/bs-bz-maryland-lottery-contract-20210720-qz75f6h75nb757zj765qv7c5qm-story.html [7] https://www.baltimoresun.com/business/bs-bz-maryland-lottery-contract-20210720-qz75f6h75nb757zj765qv7c5qm-story.html [8] https://www.baltimoresun.com/business/bs-bz-maryland-lottery-contract-20210720-qz75f6h75nb757zj765qv7c5qm-story.html [9] https://www.baltimoresun.com/business/bs-bz-maryland-lottery-contract-20210720-qz75f6h75nb757zj765qv7c5qm-story.html [10] https://www.baltimoresun.com/business/bs-bz-maryland-lottery-contract-20210720-qz75f6h75nb757zj765qv7c5qm-story.html
Intralot is pursuing legal action against the Maryland Lottery and Gaming Control Agency (MLGCA) over the cancelled $260 million contract, claiming that it has significantly exceeded the necessary local subcontractor requirement in the Maryland Lottery contract. The financial aspects of Intralot's offer, including how the advantage was calculated, remain undisclosed.
