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Slots "Nuts and Bolts" Contracts Awarded

The Board of Public Works this morning approved $7.2 million in contracts to put some of the nuts and bolts of Maryland's slots program in place, awarding $5 million to Spectrum Gaming Group of New Jersey to conduct background checks on bidders for the five slots licenses and $1.2 million to an Atlantic City, NJ consulting company called WhiteSand to develop a request for proposals to choose and run the slot machines, games and software.

Comptroller Peter Franchot (D) questioned why the state lottery commission received just one bid for the consulting contract after sending the request for proposals to 21 potential contactors, five in Maryland.

With just one bidder, "How do we know we're getting a good deal?" Franchot asked. "I find it hard to believe that the bullpen of consultants is so thin we simply got one response."

He voted against the contract.

Lottery commission director Buddy Roogow said the other potential bidders "want to be involved in the central aspect" of the slots operation in some way, so decided not to pursue the consulting job.

Treasurer Nancy Kopp and Gov. Martin O'Malley, the other members of the public works board, voted for the contract.

The state will be reimbursed for the background checks by developers who are awarded the licenses.

By Lisa Rein  |  May 6, 2009; 12:56 PM ET
Categories:  Lisa Rein  
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