Maryland Court Reverses Intralot Disqualification from Lottery Management Contract Bid

A Maryland Circuit Court decision has restored Intralot’s ability to contest its removal from the competition to manage the state’s lottery system. The ruling centers on the proper application of minority business enterprise rules during the 2025 procurement process.

Intralot initially secured preferred bidder status with its $260m proposal for the 10-year contract from the Maryland State Lottery and Gaming Control Commission. Scientific Games, the runner-up, challenged the award in July 2025. On 1 August 2025, the Commission rejected the bid as non-responsive, citing deficiencies in MBE requirements. The Maryland State Board of Contract Appeals upheld that rejection, ruling the MBE participation schedule deficient under applicable procurement rules and not correctable after submission.

Intralot expressed surprise at the initial rejection. The company stated: “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. 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.”

Intralot appealed the Board’s decision to the Maryland Circuit Court. Judge Paul J. Cucuzzella concluded the Board had misinterpreted the law.

Court Finding on Procurement Reform Act Requirements

Under the court’s reading of Maryland’s Procurement Reform Act of 2025, the Procurement Officer was required to notify Intralot of the MBE deficiency and direct submission of an amended participation schedule. Judge Paul J. Cucuzzella reversed the Board’s ruling and referred the matter for further proceedings. The decision does not select the lottery system manager for the next decade.

Limits of the Ruling in the Contract Award Process

As reported by Lottery Daily, the outcome simply affords Intralot renewed legal footing to challenge its disqualification from the original bidding. The case returns to administrative review without resolving the ultimate contract recipient. This leaves the $260m award unresolved pending completion of the remanded steps.

Reporting: Lottery Daily

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