Washington Post reporter Yolanda Woodlee writes about the D.C. Council hearing on the city's lottery contract in today's Post.
One thing you quickly see about the two companies at the center of the fight over the lottery contract is that they have similar set ups. Both the current contract holder, Lottery Technology Enterprises, and the potential one, W21, each have partnerships with larger non-local firms. For LTE, it's GTech, a national gaming firm. And for W21, it's Intralot, an international gaming services.
So why not just go directly to those larger companies? The answer: the city wants to give preference to local companies. Like other local and federal governments, it also tries to make sure that minority firms get a share of government contracts.
There's no doubt that the deals with the lottery are lucrative. LTE, which has had its own problems with an old network system, has been paid $79.9 million since 2000 (as of February). GTech (and partner OAO) has been paid $5.5 million since the end of 2005, plus another $313k for a little player named Elsym.
Collectively, Elsym-LTE-GTech got $11,900,725.53 for the 2007 fiscal year.
Not peanuts by any stretch.