INTRALOT S.A. informs the investment community that the Maryland State Lottery and Gaming Control Agency (USA), despite an initially favorable recommendation, has ultimately rejected the bid submitted by its subsidiary, Intralot, Inc., for the award of a contract for a new Central Lottery Monitoring and Control System in the State. The rejection was based on the alleged failure to meet the minimum required percentage of subcontracting to local subcontractors.
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. In fact, the Commission initially ruled that all participants in the bidding process complied with the requirements of the relevant RFP — something the Commission itself acknowledges.
The Company reserves all its legal rights and intends to pursue every legal remedy available to protect the interests of its shareholders. The bid submitted by Intralot, Inc. is technically sound and by far the most financially advantageous, significantly outperforming the second-best offer. Should it not be accepted, the State of Maryland stands to lose a substantial financial benefit.