AUGUSTA — A $35 million contract to print scratch tickets and for related services for the Maine State Lottery will remain with Scientific Games Inc.

A judge Thursday ruled that the state Bureau of General Services properly invalidated last year’s award to Intralot Inc., the Athens, Greece-based company that initially won the award with the lowest bid.

A five-person committee established by the bureau used an 800-point system to score the proposals.
Intralot scored the most points and submitted the lowest bid. Scientific Games, which has offices in Gardiner’s Libby Hill Business Park, had the second lowest bid and tallied fewer points. Intralot was awarded the contract in September 2010.

Spurred by local legislators who feared the loss of jobs, Scientific Games challenged the criteria used in the point system, and in November succeeded in having a three-person panel of the state Division of Purchases overturn it.

According to rules on file with the state Division of Purchases, an award can be invalidated if it’s proven something illegal or irregular occurred in the bidding process, or the award was arbitrary.
In their letter asking that the award be rescinded, Sen. Earle L. McCormick, R-West Gardiner, and

Rep. Steve Hanley, D-Gardiner, said: “We understand that the lottery overlooked its own requirement that there must be local personnel handling these functions and instead awarded the contract to Intralot Inc., which we understand will move a number of jobs from Gardiner out of state. …

“Over the term of the contract, this will amount to a loss of from $3.5 million to $5.5 million dollars in earnings to local citizens. Not only will this award result in a loss of jobs, but it will also result in a loss of local responsiveness for Maine.”

After the award was overturned, Intralot appealed in Kennebec County Superior Court. Scientific Games retained the contract while the legal challenges were argued.

In a 13-page order filed Thursday, Justice Robert Murray rejected Intralot’s appeal, saying he based his decision on written briefs and on oral arguments he heard in early July.

“We’re very pleased to read the decision,” Charles Dingman, the attorney representing Scientific Games, said Thursday. “We are pleased that, on all grounds, the court supported the decision of the appeal committee.”

He said he had just forwarded Murray’s decision to his clients.

“They were very concerned about the flawed process that led to Intralot’s selection, and they believe there are many good reasons why Scientific Games should continue to provide lottery services to the state,” Dingman said.

William Laubenstein, the assistant attorney general who represented the state in the appeal, had urged that the Bureau of General Services decision be upheld.

Laubenstein said the decision was “comprehensive and fairly addresses the issues raised on appeal.”

“The Bureau of Alcoholic Beverages and Lottery Operations will review the decision and move forward to acquire the services that they require,” he said.

Byron Boothe, vice president for government relations at Intralot USA, said Thursday the company is disappointed with the ruling. He said the company would be keeping all its options open, including any with regard to bidding if the contract is offered again.

Previously, an Intralot spokesman had said Intralot was planning to bring 20 jobs to Kennebec County — only two fewer than the number employed by Scientific Games — with other operations moved to Vermont.

Intralot also said its bid would have saved taxpayers $3.6 million over a potential 10-year duration of the contract, which had an initial six-year term with a possible four-year extension.

The state first sought bids for the lottery gaming system on Jan. 11, 2010. Scientific Games, GTECH Corporation and Intralot submitted bids.

Betty Adams — 621-5631
badams@centralmaine.com