Deal with Intralot looks set to go ahead after Director rejects appeal from unsuccessful bidder.

Thursday 19th June 2008

In America, Ohio’s Lottery Director, Michael Dolan, has rejected a complaint from GTech Corporation over his decision to award the $170 million contract for the operation of the State’s lottery to rival firm Intralot.

Challenging the contract, Providence-based GTech argued that its rival didn’t have enough experience or proven equipment to handle Ohio's $2.2 billion Lottery while it had handled the operation for more than 20 years. It stated that the operation had lowered its experience requirements in order to allow Intralot to compete for the contract as the largest US lottery Intralot operates is in Nebraska. The Rhode Island firm also alledged that Intralot had lied about claims it had never had to pay damages resulting from a system breakdown.

However, Michael Dolan rejected GTech’s claims, setting up a vote on the pact by the state Controlling Board. He stated that the size of the lotteries Intralot currently run did not figure into the bidding process and that the relatively trivial objections raised by GTech missed the point, which was that Intralot would save the Lottery about $20 million a year in equipment and operating costs.

'These guys need to back off and let the process work instead of trying to distort the truth,' said Dolan.

The contract could begin as soon as July of next year and last for as long as a decade. Part of the deal includes the new Keno game if it is approved by the State Controlling Board with Democratic Governor Ted Strickland stating that this could provide $73 million in the first year to help plug a projected $733 million budget gap.

'This seemed like a foregone conclusion before we even filed our protest,' said Robert Vincent, Spokerperson for GTech.

'We're still digesting most of it. The full range of options remains open to us.'

Source: OnlineCasinoNews