Lottery company, Intralot, contemplates instituting legal measures following Maryland's revocation of a $260 million lottery contract.
The Maryland Lottery and Gaming Control Agency (MLGCA) has rescinded the $260 million contract award to Intralot, initially selected as the preferred bidder for a ten-year contract to provide lottery vending machines, terminals, and software. This reversal was due primarily to the agency determining that Intralot did not meet the necessary subcontracting requirements involving local subcontractors, despite Intralot's strong disagreement and claims of compliance.
Intralot has expressed that the decision was a "great surprise," emphasizing that their bid was deemed financially more advantageous than Scientific Games' and that they exceeded local subcontractor requirements as originally indicated by the agency. They are now considering legal action to challenge the reversal.
The MLGCA has named Scientific Games as the new recommended offeror, although the procurement process remains open and the final contract still awaits approval from the Maryland Board of Public Works. The Lottery’s current contract with Scientific Games runs through May 2027, and the new procurement is to replace that.
The controversy surrounding Intralot's bid stems from a related controversy from January 2025, in which Intralot agreed to a $6.5 million settlement after allegations that it misled officials in Washington, D.C. regarding subcontracting arrangements. While the Maryland Lottery has not explicitly linked the current reversal to that controversy, the similar nature of issues may have prompted more scrutiny of Intralot’s subcontracting commitments.
Previously, the Maryland Lottery initially selected Intralot in July 2025 after evaluating proposals based on technical merit and financial value, with Intralot scoring second in technical merit but offering a significantly lower total contract price than Scientific Games, which ranked higher technically but was more expensive.
In summary:
- Maryland Lottery revoked Intralot’s $260M contract due to subcontracting compliance issues.
- Scientific Games is now the favored bidder, but a final contract award is pending.
- Intralot contests the decision and may pursue legal action.
- The procurement process remains ongoing and subject to approval by the Maryland Board of Public Works.
- The Maryland Lottery contract involves the provision of technology and equipment for the lottery.
- The statement from Intralot references the rival bid from Scientific Games.
- The statement from Intralot does not mention any legal action at this point.
- Intralot was told that the U-turn in the Maryland Lottery contract decision was due to not meeting the minimum necessary ratio of local subcontractors.
- Intralot's offer significantly outperformed the second-best offer from Scientific Games.
The reversal in the Maryland Lottery industry decision to award the $260 million contract to Intralot, a company specializing in casino-and-gambling technology, was because they failed to meet the minimum necessary ratio of local subcontractors required in the finance sector. Intralot's financial advantage, as they offered a significantly lower total contract price compared to Scientific Games, a rival company also in the casino-and-gambling industry, was disregarded in this recent gambling-trends change.
