Leading gaming firm Intralot are considering legal action against the Maryland Lottery after the state made a dramatic U-turn on their 10-year winning bid – having been originally selected for the contract in July.
Maryland Lottery Withdraw $260m Intralot Bid
Legal representatives at Intralot are weighing up their options after hearing the $260 million Maryland Lottery contract has been reversed – just weeks after the company was revealed as the top recommended bidder.
The leading gaming firm have said that Maryland Lottery and Gaming Control Commission (MLGCC) have made a dramatic U-turn and rejected the Intralot offer – stating an alleged failure to hit the minimum necessary percentage of subcontracting to local subcontractors.
Back on July 17, Intralot announced that the MLGCC had approved the new Lottery Central Monitoring and Control System contract to their US branch after a successful bidding process.
This contract was to include the manufacture of self-service vending machines and counter terminals that would sell tickets in 4,300 Maryland Lottery retail outlets and gambling sites in the state.
Intalot would have also been responsible for the development of the software that looks after sales and accounting – plus also the additional functionalities that surround running the lottery service in Maryland.
Rejected Intralot Maryland Lottery Bid Worth $260m
This Maryland Lottery contract is for 10 years and also has an added five years possible extension – with the total worth of the bid $260,393,946.
However, this previously successful bid has now been rejected by Maryland.
Intralot responded to the lottery U-turn saying “In fact, the Commission initially ruled that all participants in the bidding process complied with the requirements of the relevant RFP – something the Commission itself acknowledges.”
It’s also believed Intralot are now considering their legal rights on the matter and is expected to explore many legal avenues in order to look after the interests of their shareholders and backers.
The added “The bid submitted by Intralot, Inc. is technically sound and by far the most financially advantageous, significantly outperforming the second-best offer,” the group added. “Should it not be accepted, the State of Maryland stands to lose a substantial financial benefit.”
At this stage it’s not known if there is another bid is now in the running to take the contract.
