Intralot Weighs Legal Action After Maryland Reverses $260M Lottery Contract Award
Intralot is considering legal action against the state of Maryland after gaming officials abruptly withdrew a recommendation to award the company a lucrative $260 million lottery systems contract. The Maryland Lottery and Gaming Control Agency (MLGCA) now claims Intralot’s bid was non-compliant, a finding the global gaming technology company vehemently disputes.
A Sudden Change of Course
The dispute erupted just two weeks after Intralot announced on July 17 that it had been selected as the preferred bidder for the massive contract. The deal, valued at over $260 million, would have seen Intralot supply self-service vending machines, clerk terminals, and various software and services to approximately 4,300 lottery retailers across Maryland.
The initial recommendation was approved by the Maryland Lottery and Gaming Control Commission on July 15. However, on August 1, the MLGCA reversed course. In a statement, the agency said that while all bidders were initially deemed compliant, a subsequent review found that Intralot’s proposal did not fully meet the requirements laid out in the state’s request for proposals (RFP).
As a result of the reversal, Scientific Games, which was the second-ranked bidder, has now been named the new recommended vendor.
Conflicting Reasons for the Decision
The justification for the reversal is at the heart of the dispute. According to Intralot, the agency’s reasoning centered on an alleged failure to meet a minimum requirement for local subcontractors.
The company fired back, stating its proposal “significantly exceeded” the required minimum percentage for local partners. Intralot asserted that it had provided detailed explanations and that the commission was fully aware of the identity and role of its subcontractors during the evaluation process.
Furthermore, Intralot argued its bid was “by far the most financially advantageous, significantly outperforming the next best offer.” The company claims the state of Maryland stands to lose a substantial financial benefit by not accepting its proposal.
In a formal statement, Intralot expressed “great surprise” at the agency’s decision and contested the reasoning behind it. The company has made its position clear: it believes the contract was awarded fairly and that the subsequent withdrawal was improper.
Intralot has now put the state on notice. The company announced that it reserves all its rights and intends to pursue “any and all legal remedies” to protect its shareholders’ interests.
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