The Maryland Lottery recently recommended renewing its contract with Scientific Games International of Las Vegas to provide a central monitoring and control system on ticket sales. However, losing bidder IGT Global Solutions of London claimed the 2 million, 8-year contract included unlawful internet gambling. As a result, IGT officials said, the Maryland Lottery chose the most expensive bidder—Scientific Games’ bid was million higher than IGT’s. That created a “materially flawed evaluation” of the three competing bids, and caused a loss of millions of dollars that could have gone to education, health and safety, IGT officials said.
IGT spokesperson Angela Wiczek said that without the internet component, its own bid would have been $30 million lower than Scientific Games’.
In the August 17 letter informing IGT Scientific Games had been recommended for the new contract, Lottery Procurement Officer Robert Howells said, “The technical merit of the first-ranked technical offeror was considered to outweigh its higher price, and was therefore determined to be the most advantageous offer to the state.”
Scientific Games Senior Vice President of Global Lottery Systems, Patrick McHugh, defended the company’s bid, noting, “Our high score reflects Scientific Games’ investment in new products and services designed to continue the lottery’s sales and profitability momentum for the beneficiaries of the state of Maryland.” McHugh added fiscal 2016 ticket sales generated a record-breaking $1.9 billion in sales and $570 million for public education and other state services.
IGT officials stated lottery management did not tell them unlawful internet gambling was included in the bid until after it announced Scientific Games’ contract would be renewed. Lottery management explained internet gambling was included “simply to avoid future review and approvals by the BPW” if and when lawmakers approve the expansion, IGT officials said. They added lottery management said obtaining online gaming approval would bring lottery operations to “a screeching halt.”
Lottery spokeswoman Carole Gentry said the agency cannot comment until the contract is finalized. Doug Mayer, a spokesman for Governor Larry Hogan, pointed out the contract still needs the official approval to move forward. “Governor Hogan has a long and well-documented record of fighting for responsible budgeting and restraint in state spending, especially in regards to procurement issues. His position will never change.”
