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Sunday, November 30, 1997
GTECH declines to rebid on lottery business
AUSTIN (AP) -- GTECH Corp., the Texas Lottery's primary contractor,
is not interested in rebidding on the work it currently performs,
the company said Saturday.
"We have officially informed the Texas Lottery Commission
that the company will decline to submit a proposal in response
to the commission's request for proposals for a new lottery system
and services," GTECH spokesman Marc Palazzo said Saturday.
Rhode Island-based GTECH informed the three lottery commissioners
and senior lottery staff members of its decision by letters delivered
Saturday, Palazzo said. The bid deadline is Monday.
Lottery commissioners and senior staff members did not immediately
return calls to The Associated Press seeking comment Saturday
afternoon.
GTECH's decision is the latest volley in a long-running battle
between the lottery and its main contractor, which runs the on-line
system for games such as Lotto and Cash 5, and warehouses and
distributes instant games.
The commission opted to seek new bids earlier this year after
months of investigation into the way GTECH does business. Members
of the three-person commission said rebidding the contract could
save the state money.
But GTECH sued the commission on Nov. 7, claiming a former
lottery executive stacked the deck against the company in its
rebidding process.
Last week, in its legal answer to GTECH's lawsuit, the lottery
asked a state judge in Travis County to dismiss the suit on grounds
that the agency is immune.
The lottery said GTECH has not received legislative permission
to sue the agency, as it must under the standard of sovereign
immunity. The lottery also said GTECH did not follow the legally
set time limit for appealing to the commission its decision to
rebid the contract.
In addition to saying the agency can't be sued, the lottery
said GTECH has no legitimate case.
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Copyright ©1997,
Abilene Reporter-News / Texnews / E.W. Scripps Publications
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