Committee questions long vendor relationships and procurement: Intralot, Scientific Games, IGT

Lawmakers raised procurement and vendor reliability questions for companies that run the Lottery’s central systems and supply instant tickets and COAAM accounting services.

General counsel and operations staff discussed the Lottery’s relationships with three long‑term vendors: Intralot (COAAM centralized accounting), Scientific Games (instant ticket provider) and IGT/Brightstar (central gaming system). Staff said Intralot’s current contract runs through 2029 and that past renegotiations yielded price reductions (e.g., a cited 15% reduction on one extension). They noted the draw‑station and central system markets are concentrated — the Lottery described a roughly three‑vendor competitive market for core systems — and cautioned that rebidding can add costs or operational disruption if competitors must build integration capabilities.

Members sought details about the District of Columbia dispute involving Intralot: committee members said there were large fines reported in other jurisdictions; Lottery staff said they had Intralot representatives present and described the DC matter as a dispute related to minority contracting that produced a roughly $6 million settlement (as reported by a committee member), and said local Intralot service levels had improved.

Procurement staff said major vendor contracts are evaluated for both price and operational risk, and that some contracts are rebid while others are renegotiated when extensions deliver lower rates and fewer transition risks. The committee asked the Lottery to notify members before exercising major extensions and to provide documentation supporting contract decisions.