A D.C. Superior Court judge dismissed a complaint yesterday brought by one of the unsuccessful bidders in the District's gambling franchise competition and refused to block the city lottery board from awarding a contract to operate the city's first legal lottery.

Judge Nicholas Nunzio said Raven Systems and Research Inc. of Washington, which accused the board of violating its own guidelines when it chose a lottery company last month, did not have standing to challenge the contract because it was let in the public interest.

The judge added that even if Raven were within its legal rights to challege the award, he could not grant Raven's request to block the contract because Raven failed to prove that it suffered "irreparable harm."

"All the plaintiff is seeking is another race of the horses," said Nunzio. "The board's action had a solid rational basis. The court fails to see where plaintiffs were harmed."

Both Raven and Glendenning Companies Inc. of Westport, Conn., the other losing lottery bidder, had earlier lodged formal protests with the board and the U.S. General Accounting Office, protesting the board's procedures.

The $10 million contract for an instant lottery to begin next month was awarded to Scientific Games Development Corp. of Atlanta, which bid in conjunction with Games Production Inc. of Washington. The D.C. Lottery and Charitable Games Control Board signed the contract with the two firms Monday.