Intralot is evaluating its legal options after being dropped as the preferred bidder for a new central lottery monitoring and control system in Maryland.

The Maryland Lottery and Gaming Control Commission selected Intralot as its preferred bidder in July, recommending that the company be awarded the new ten-year lottery contract which is due to commence in May 2027.

Intralot was selected as the preferred bidder over rival bids from Brightstar (formerly IGT) and Scientific Games, after an evaluation committee determined that all three bidders have the ability to fulfil the lottery’s requirements, including the requirement that the winning bidder must achieve Minority Business Enterprise (MBE) participation of 28 per cent over the life of the contract.

The proposals were evaluated for technical merit and price and Intralot’s proposal was found to be the most advantageous to the state, which is the standard by which state contracts are awarded in Maryland.

However, this decision was overturned last week, with Intralot issuing a statement on Monday confirming that its bid has ultimately been rejected based on the alleged failure to meet the minimum required percentage of MBE participation.

“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,” said Intralot. “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,” the company added.

“The bid submitted by Intralot, Inc. is technically sound and by far the most financially advantageous, significantly outperforming the second-best offer. Should it not be accepted, the State of Maryland stands to lose a substantial financial benefit.”

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

Shares in Intralot, Inc. parent Intralot SA (ATH:INLOT) closed 0.91 per cent higher at €1.11 per share in Athens Monday.