On May 28th, 2008, the organization that handles the state of Ohio's $2.2 billion lottery industry said that their rival, which has just successfully bid for the state's next lottery gaming contract, lacks adequate experience and the keno equipment to handle games like the Mega Millions, Pick 3 and the keno games.
GTECH Corporation, which has possess the contract for the lottery since 1985 also complained to the committee assigned to studying the bids failed to look into the misrepresentations by the new bidder, Intralot USA and made some procedural blunders that only benefited Intralot. The keno contract, which will start next summer, is worth more than $170 million over the next ten years.
Intralot's bid to the contract was $24 million lower compared with GTECH. Intralot President Thomas Little commented that the whole process has been fair and they have won fairly. GTECH, which is an Italian company with a headquarters in Providence, R.I. in the U.S., is not filing a complaint as the losing bidder. Instead, it has launched a P.R., Political and Legal campaign to delay the decision of the Ohio board.
GTECH Vice President Robert Vincent said that they intend to fight this legally. GTECH argues that Intralot should have been disqualified from the whole process because the organization is not currently operation instant ticket vending machines and Keno in the U.S. although the brand new contract will require the vendor to do both transactions.
Intralot is a Greek gaming organization that has a U.S. based in Duluth, Ga. Intralot handles state lotteries in Idaho, Montana and Nebraska, which have combined ticket sales of $285 million, which is smaller than the state of Ohio.
By John M. Thorpe