In a surprising reversal, the Maryland Lottery and Gaming Control Agency (MLGCA) has pulled back a $260 million contract previously awarded to Intralot, just weeks after the company had been selected as the winning bidder for a 10-year agreement. The contract, initially granted to Intralot’s U.S. subsidiary, was intended to modernize the Lottery Central Monitoring and Control System, but the deal has now been rescinded following concerns over subcontracting compliance.
Intralot confirmed it is evaluating its legal options and may take action, stating it “intends to pursue every legal remedy available” to safeguard its shareholders’ interests.
Contract Revoked Over Subcontracting Requirements
The contract would have covered the development and provision of sales terminals and self-service ticket machines at 4,300 retail locations across Maryland, as well as supporting software and related operational services. Valued at $260,393,946 over a 10-year period—with an optional five-year extension—the project was announced on July 17 as officially recommended to Intralot after a competitive bid.
However, the MLGCA said on August 1 that it had reassessed Intralot’s proposal and determined it did not meet the minimum percentage of work allocated to local subcontractors, a key requirement outlined in the Request for Proposals (RFP).
MLGCA Director John Martin stated, “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 the withdrawal, the contract is now expected to go to Scientific Games, the current vendor and second-ranked bidder.
Intralot Rejects Allegations, Cites Full Compliance
Intralot sharply criticized the agency’s decision, saying the move came despite the company allocating “a significantly higher percentage of the project to local subcontractors than the minimum required.”
The company said the commission was fully informed about the identities and responsibilities of its proposed subcontractors and noted that all bidders had initially been deemed compliant. “The bid submitted by Intralot, Inc is technically sound and by far the most financially advantageous, significantly outperforming the second-best offer,” the company added.
The MLGCA did not comment further on Intralot’s objections, citing an ongoing procurement process that remains active until the Maryland Board of Public Works (BPW) issues final approval.
D.C. History Raises Additional Concerns
While Maryland has not specified additional reasons beyond subcontracting compliance, Intralot’s past dealings in nearby Washington, D.C. have resurfaced. In D.C., Intralot was previously awarded an exclusive sports betting contract without competitive bidding. That deal later faced scrutiny after allegations of improper subcontracting practices.
In 2024, Intralot paid a $6.5 million settlement after an investigation by the D.C. Attorney General’s Office revealed the company misled the city council about its relationship with a local partner, Veterans Services Corporation (VSC), as part of its bid for the contract.
As the MLGCA reopens the bidding process, Intralot’s future role in Maryland’s lottery infrastructure remains in flux. While the company argues its bid was the most cost-effective and compliant, state authorities appear poised to shift direction, possibly opening the door for its rivals.
The situation underscores the high stakes and regulatory complexity of public gaming contracts—and may lead to a prolonged legal challenge as Intralot defends its bid.
Source:
“Intralot weighing legal options after $260m Maryland Lottery U-turn”, igamingbusiness.com, Aug 5, 2025
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