Maryland Lottery Agency Sanctioned in Contract Dispute
The state's gaming agency faces sanctions after failing to provide documents in a dispute with Scientific Games.
Updated on Sept. 29, 2026 in Gambling
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The Maryland Board of Contract Appeals has sanctioned the Maryland Lottery and Gaming Control Agency for repeatedly missing discovery deadlines. The board will now assume that any withheld evidence is favorable to the claims of Scientific Games.
Why it matters
The board issued the sanctions after the lottery agency failed to produce requested documents and ignored discovery orders. This decision significantly impacts the ongoing contract dispute by limiting the evidence and witnesses the state can use.
The 16-page sanction order follows a 4-3 vote by the commission that previously rejected recommending Scientific Games for a new contract. The sanctions prevent the agency from presenting undisclosed records or associated witnesses at trial.
The players
Maryland Lottery and Gaming Control Agency
This state regulatory body oversees lottery operations and gaming activities within Maryland.
Maryland Board of Contract Appeals
This independent board adjudicates contract disputes between state agencies and private vendors.
Scientific Games
This Georgia-based company is a major provider of lottery products, services, and gaming technology.
Intralot
This multinational company specializes in gaming solutions and contract operations for government lotteries.
The details
The Maryland Board of Contract Appeals reviewed the withheld documents privately and determined that most were not privileged as the agency had claimed. Consequently, the board has barred the lottery agency from using these records as evidence or calling any witnesses linked to the undisclosed material.
Timeline
The lottery agency canceled a bidding process in 2025.
The agency nearly recommended Intralot for the contract last summer.
The Board of Contract Appeals issued the sanctions in September 2026.
The current lottery contract is scheduled to expire in May 2027.
Culture Shift
These sanctions highlight a growing tension in state contracting where transparency and discovery compliance are becoming central to vendor disputes. This development follows a pattern established by the Maryland State Procurement Regulations discovery rules to ensure fairness in state-level bidding.
The ongoing dispute may delay the transition to a new lottery operator, potentially affecting contract timelines beyond May 2027. Residents may see continued uncertainty regarding the state's lottery vendor management until the legal process concludes.
The takeaway
Legal disputes between state agencies and vendors can cause significant delays in operational transitions for public services. Clear adherence to discovery procedures is essential for maintaining the integrity of state contracting processes.
What happens next
The current contract is set to expire in May 2027, and observers expect the transition process to a new operator could take over one year.
Further reading
Learn more about the state's regulatory environment in the Gambling section.
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