Intralot faces setback in Maryland lottery tender following compliance review

Intralot's $260 million winning bid to provide the Maryland Lottery’s Central Monitoring and Control System has been withdrawn following a reassessment by the Maryland Lottery and Gaming Control Agency (MLGCA), days after the Greek lottery supplier was initially named as the recommended vendor.

The contract, which covers the manufacture of terminals, self-service machines, software development, and operational support for approximately 4,300 lottery retailers across Maryland, was intended to run for 10 years with an optional five-year extension. Intralot’s proposed contract term price was $260,393,946.

The MLGCA announced that while all three bidders were initially deemed compliant, a subsequent internal review determined that Intralot’s submission did not fully meet requirements specified in the Request for Proposals (RFP) and state procurement law.

“As an independent agency, our review process is designed to ensure that proposals don’t advance without meeting all requirements,” said MLGCA director John Martin. “Upon determining that our initial assessment was incorrect, we have taken appropriate action to move forward with the procurement process in accordance with procurement law.”

Following this decision, Scientific Games, previously the second-ranked bidder, has become the recommended offer. However, the agency confirmed that the tender process remains ongoing and a final decision has not been made.

Intralot challenges decision

Intralot has contested the reversal, stating it was informed that the rejection was based on an alleged failure to meet the required subcontracting percentage for local subcontractors. The company said this decision contradicted earlier assessments and claimed it had allocated a significantly higher percentage to local subcontractors than what was mandated.

“This decision comes as a great surprise, especially considering that Intralot, Inc. had allocated a significantly higher percentage of the project to local subcontractors than the minimum required,” the company said in a statement. “Moreover, the company had provided the Commission with very detailed clarifications, and the Commission was fully aware of the identity and role of these subcontractors.”

The company added: “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.”

Legal options under consideration

Intralot stated it is considering legal action in response to the withdrawal.

“The bid submitted by Intralot, Inc. is technically sound and by far the most financially advantageous, significantly outperforming the second-best offer,” the company said. “Should it not be accepted, the State of Maryland stands to lose a substantial financial benefit.”

Intralot also stated it reserves “all its legal rights and intends to pursue every legal remedy available to protect the interests of its shareholders.”