State scraps GTK pact

Jan 7, 2003 6:09 AM

GTECH Holdings Corporation (GTK), the country’s biggest supplier of lottery systems and equipment, has been doing business with the State of Wisconsin since 1989. So, they were happy to learn last month they had been selected to supply online and instant-ticket lottery system telecommunication network for an additional five years.

The new contract, priced at between $50 million and $55 million, was to take effect on June 15, 2004, when the existing contract expires.

Awarding the contract, after the usual bidding process, was the Wisconsin Lottery. But before contracts were signed another bidder appealed the decision to the Wisconsin Department of Revenue which denied the protest.

But, somehow, another bureaucratic arm of the state got involved and down came the decision by the Wisconsin Department of Administration that the Lottery’s notice of intent be withdrawn from GTECH and that it should "pursue a best and final offer" process.

Stunned by the decision, officials at GTECH said they were studying the matter and that they would review their legal options before deciding on how to proceed.