Intralot is considering its legal options after seeing its $260 million Maryland Lottery contract withdrawn just weeks after the company had announced it was the recommended bidder.

Intralot said the Maryland Lottery and Gaming Control Commission (MLGCC) has decided to reject the offer due to an alleged failure to meet the minimum required percentage of subcontracting to local subcontractors.

On 17 July, Intralot announced that MLGCC approved the recommendation to award a new Lottery Central Monitoring and Control System contract to its US subsidiary following a competitive bidding process. The contract was to cover the manufacture of counter terminals and self-service vending machines that sell tickets at 4,300 Maryland Lottery retailer points of sale. The vendor will also develop the software that runs the system’s sales and accounting functions, and provide numerous related services that are necessary to operate the Maryland Lottery.

The contract is to last 10 years, with a possible extension of a further five years. Intralot said the total estimated contract term price of its bid was $260,393,946.

In a statement on the contract being withdrawn, Intralot said: “This decision comes as a great surprise, especially considering that Intralot, Inc had allocated a significantly higher percentage of the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. 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.

“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.”

Intralot considering every legal remedy

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

“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.”

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