D.C. Data Co., which submitted the lowest bid to run the District's planned daily numbers lottery game but did not win the contract, filed a protest of the decision yesterday with the D.C. Lottery Board.
In filing the protest, the firm joined Columbia Gaming Services Inc., the other losing bidder, in questioning whether the winning company, Lottery Technology Enterprises, has the required minority participation and is financially able to run the game, which lottery officials hope to start in late July.
Columbia Gaming filed its protest Friday. Both protests have been referred to the lottery board's legal staff for review, but since the board has no formal procedures for hearing complaints from losing bidders it is not clear how the agency's five-member board will deal with them.
D.C. Data, a joint venture of a division of General Instrument Corp. and IBS Digit Inc., a local minority-owned computer systems firm, said in its protest that the main computer partner of Lottery Technology, Gaming Systems Corp. of Providence, R.I., will be hard-pressed to start the District's game because at the same time it is supposed to be initiating a daily numbers game in Arizona and supplying new equipment for the game it operates in Connecticut.
In addition, D.C. Data's leader, Marion O. (Duke) Greene, claimed in a letter to Chester C. Carter, executive director of the lottery board, that Lottery Technology is "not in fact a joint venture controlled by the minority venturer."
After considering the three bids for nearly two months, the lottery board handed the contract last week to Lottery Technology, a combine that includes Gaming Systems and four relatively unknown minority-owned Washington firms. Lottery Technology says the four D.C. firms will control 60 percent of the equity in the venture.
Under a complex formula, Lottery Technology would be paid 3.9235 percent of the first $2 million in lottery revenues wagered each week and 2.95 percent for the next $2 million, the basic bid on which the proposals were judged.
D.C. Data also promised 60 percent equity and submitted the lowest basic bid, 2.5 percent. Columbia Gaming promised 80 percent minority participation, but its bid, 5.9 percent, was twice that of Lottery Technology's winning entry.