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Mayor to Withdraw, Then Resubmit Lottery Contract (*Updated)

A day after the D.C. Council tabled a controversial D.C. Lottery contract, Mayor Adrian M. Fenty will withdraw it from consideration later today, administration officials said. The move is aimed at ensuring the deal is not declared dead by tomorrow's deadline for the council to vote on the matter under rules governing legislation.

But interim Attorney General Peter Nickles said the mayor will immediately re-submit the same contract for re-consideration, which would give the administration and D.C. CFO Natwar Gandhi more time to lobby the council and push for a vote. Fenty and Gandhi want to turn over lottery operations to a nine-month-old company called W2I, but council members have raised questions about the firm's credentials.

"We're not satisfied having the contract declared dead with no action," Nickles said. "We want a vote on this." He added that the administration would be happy to answer any further questions from the council but does not know of any specific concerns that were not answered by Gandhi in an April 30 letter to the council.

W2I is a partnership between international gaming services provider Intralot and W2Tech, a firm established less than a year ago by real estate developer Warren C. Williams Jr. and his wife, Alaka Williams.

If the council does not approve the legislation, the city would be forced to extend the contract with longtime vendor Lottery Technology Enterprises. LTE is a joint venture involving international lottery firm GTech and New Tech Games, headed by P. Leonard Manning.

Gandhi has said that the city is losing millions of dollars a year in potential profit under the current lottery management.

* Update 4:16 p.m.: Here is the mayor's letter to Council Chairman Vincent C. Gray (D) explaining the moves.

By David A Nakamura  |  May 14, 2008; 3:18 PM ET
Categories:  City Finances , David Nakamura  
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