The District of Columbia Office of Lottery and Gaming has recently opened a Request for Proposal (RFP) for a new lottery gaming system and related services. This move comes as the District seeks to enhance its lottery operations and potentially improve its financial performance.
The Office of the Chief Financial Officer, Office of Contracts (OC), Office of Lottery & Gaming has published Request for Proposal No. RFP No. CFOPD-25-R-002, for Lottery Gaming System and Related Services. Key details of the RFP include:
"The District of Columbia Office of the Chief Financial Officer, Office of Contracts, on behalf of Office of Lottery and Gaming is seeking a Contractor to for the following gaming system(s) and related services:"
Traditional lottery (draw games, monitor games, and terminal generated instant win games);
iLottery (eInstants, and traditional lottery games sold over the internet);
Instant tickets (instant tickets manufacturing, warehousing, tel-sel, and instant ticket distribution); and
Second chance drawings supporting all product lines and platforms.
Proposal Deadline: March 11, 2025, at 2:00 PM EST.
Pre-Proposal Conference: December 9, 2024, from 10:00 to 11:00 AM EST.
The pre-proposal conference is a vital opportunity for bidders to gain a deeper understanding of the District’s expectations and requirements.
This RFP represents a significant opportunity for industry leaders to shape the future of lottery operations in a major U.S. city. Successful bidders will not only secure a valuable contract but also position themselves at the forefront of lottery system innovation.
As digital solutions redefine the global lottery market, DC’s initiative could set a benchmark for other jurisdictions. Service providers with technical expertise, financial acumen, and a deep understanding of DC’s unique challenges will be well-positioned for success in this transformative project.
Current Financial Performance
To understand the context of this RFP, it's important to consider the current financial performance of the DC Lottery:
Revenue Increase: Gross revenues from lottery and sports wagering activities increased by $15,133 or 5.51% from the previous year*
Ticket Sales: The Lottery generated ticket sales of $221,235, an increase of $4,241 or 1.95% over the prior year's total of $216,9941*
Sports Wagering: Sports wagering sales amounted to $68,418, an increase of $10,906 or 18.96% over the previous year's total of $57,5121*
Operating Expenses: Total operating expenses increased by $23,170 or 9.88%*
Technical Requirements and Innovation Opportunities
While the RFP does not publicly disclose specific technical requirements, industry standards suggest the following key focus areas for potential bidders:
Scalable Architecture: Platforms must handle high transaction volumes and integrate seamlessly with existing District systems.
User-Centric Design: Interfaces should be intuitive, support multiple languages, and meet accessibility standards.
Advanced Security Protocols: Robust measures, including blockchain and AI, can enhance fraud detection and ensure gaming integrity.
Data Analytics Capabilities: Solutions should offer real-time insights to enable agile market responses and informed decision-making.
Regulatory Compliance: Adherence to DC's gaming regulations and adaptability to future legislative changes are essential.
Bidders should demonstrate how their proposals address these areas and drive innovation tailored to DC’s unique needs.
Strategic Considerations for Bidders
Historical Performance: Since 1982, the DC Lottery has contributed over $2.3 billion to the District's General Fund. Bidders should articulate how their solutions will enhance this contribution.
Stakeholder Alignment: Proposals should outline how the new system supports broader governmental goals, including economic development and community investment.
Risk Mitigation: With ongoing investigations into previous contracts, bidders must prioritize transparency and accountability in their proposals.
Comparative Advantage: Drawing on best practices from other jurisdictions while tailoring solutions for DC's urban environment will be advantageous.
Long-Term Vision: Proposals should outline a roadmap for future innovations and potential expansions into new gaming areas.
Financial Implications and Expectations
The selected partner will play a critical role in the District’s financial operations. Operating as an enterprise fund, the DC Lottery contributes to the General Fund after deducting prizes, operating expenses, and reserves. Proposals should include:
Detailed cost structures.
Innovative revenue-sharing models.
Projections for increased contributions to the General Fund.
Strategies to expand the player base and enhance engagement.
Recent Developments
It's worth noting that this RFP comes amid some recent developments in DC's gaming landscape:
The District recently replaced its previous sports betting app, GambetDC, with FanDuel, which has shown significant improvement in performance.
The Attorney General's office of Washington, D.C., has initiated an investigation into the lottery and sports betting contract held by Intralot. As reported by Axios on November 18, citing anonymous sources, Attorney General Brian Schwalb's office sought additional information regarding the contract during the past summer. It is not specified whether the investigation targets Intralot directly or one of its subcontractors. While Schwalb's office has the authority to file civil lawsuits against companies if warranted, the precise reasons and timeline for the investigation remain undisclosed.
Intralot, a company headquartered in Greece, has been managing the DC Lottery since 2009. In a controversial move in 2019, the company received a $215 million no-bid contract to oversee online sports betting. The platform they launched, GambetDC, did not meet expectations, underperforming in both user experience and revenue compared to initial projections.