Friday, September 2, 2011

Definitions, timeline, and major players

DEFINITIONS:

The only RFP competitively bid by the CFO's office was for "online gaming." "Online gaming" in the simplest definition refers to the telecommunications aspects of the 400 to 600 DC lottery terminals for the purpose of purchasing lottery tickets for games of chance. It has nothing to do with Igaming. The improvements which were being sought by DC Lottery were for the regular lottery. Igaming [if in caps it is a trademarked word belonging to Intralot] or Internet gambling is totally different. In the simplest definition it refers to DC home poker/slots gambling and DC hotspots poker/slots which are games of skill and chance. This internet gambling is DC Government policy with the full faith and credit of the DC Government backing it. The home poker/slots is the first internet based gambling sponsored and run by a government in the US.

Online gaming = DC lottery terminals only
Igaming or Internet gambling = DC homes and DC designated hotspots.

TIMELINE AND MAJOR PLAYERS:

PHASE ONE -- WHAT WAS MORE OR LESS IN THE PUBLIC EYE

Online Gaming referring to the 400 to 600 lottery terminals only

2007
May competitive bid for online gaming issued, bidders
GTECH/LManning and Intralot/Warren Williams Jr/SR

Dec award to Intralot/Warren Williams Jr/Sr

2008
Jan Decision by CFO contracting office sent to CFO Gandhi for Council transmission

Apr 7 Council Hearing panelist CFO contracting officer Eric Payne, Jay
Young, interim Executive Director, DC Lottery; Ann Walker Marchant representing
her father, George Walker and in person Leonard Manning of Lottery Technology
Corporation which had partnered with GTECH challenging decision of
Intralot/Warren Williams Jr/Sr
NOTE NOT A SINGLE WORD WAS MENTIONED OF INTERNET
GAMBLING OR Igaming DURING THE THREE HOURS OF HEARING

Oct CAB ruled on LTE challenge of GTECH plus LTE without merit

2009
Jan Eric Payne, former CFO contracting officer fired now suing DC Government

Unkn Contract rebid respondents, 1. GTECH with Patton, Green, Wiggins, Woodson and
Digidocs; 2. Scientific Games with Hopkins (Metropolitan Gaming) 3. Intralot
with no partner

Nov 24 (Correction: initially this date was listed as Nov 19) Seven hour hearing by contractors attacking the process. At this hearing irregularities were discussed about lack of LSDBE designation of the GTECH group and the final points given to Scientific Games with Hopkins which were described as lower then it should have received. At this hearing Emmanuel Bailey represented Veteran Service Corporation as a majority interest with Intralot
NOTE NOT A SINGLE WORD WAS MENTIONED OF INTERNET GAMBLING OR Igaming DURING THE SEVEN HOURS OF HEARING

Dec 1 City Council vote, Mendelson no; Gray/KBrown abstain; Bowers
present, MBrown, DCatania, JEvans, JGraham, MCheh, HThomas, TWells,
YAlexander, MBarry yes
Discussion included the fact that VSC was now part of the contract but there
was no evidence that the joint partnership had received a LSDBE designation and
no evidence that a contract had been signed by the parties
NOTE NOT A SINGLE WORD WAS MENTIONED OF INTERNET
GAMBLING OR Igaming DURING THE 15 MINUTE DISCUSSION

PHASE TWO -- WHAT WAS NOT IN THE PUBLIC EYE

Igaming or Internet Gambling [B-ON™ Intralot platform]

2010
Jan to March extensive email traffic showing CM Michael Brown or his staff
assisting in the negotiations with CFO’s office and Intralot and DC09 a totally
different platform, B-ON™ aka Igaming, Internet gambling in DC homes and DC hotspots

Mar 29 DC09 is incorporated in DC; do not know if the joint venture was given
a LSDBE (will research within one week)

Mar 31 contract between DC09 as majority stock holder and Intralot is signed by
CFO or CFO's contracting officer to include B-ON™ or Igaming. Council never
heard a single word about this proposal. It is significantly different from the
competitive bid.

Dec Lottery Modernization language is placed into the FY2011 budget supplement
by CM Michael Brown and Council votes twice on the budget supplement. No one
voted against the Modernization language but 2 or 3 Council Members voted
against the budget supplement due to tax abatement issues. This language allows
all types of gambling in DC with little to no restrictions except that it states
that it cannot violate federal laws

Dec GTECH one of the losing bidders issues a press release that this language is a
totally and completely different platform then what was requested and
competitively bid on by the CFO's office

PHASE THREE -- WHAT RETURNS MORE OR LESS TO THE PUBLIC EYE

2011

Jan Mayor Gray signs FY2011 Budget Supplement

Apr Congressional review period ends and Lottery Modernization becomes DC law

Apr Tom Sherwood reports that internet gambling is law on NBC

Apr 19 at the regular budget hearing on next year's budget Buddy Roogow,
executive director of the DC Lottery states that they will be offering poker, Victory
at Sea and bingo. No mention is made of computerized slots. He also does not ask
for a single increase in staffing nor any specialized experts such as a cyber auditor.
This is significant for many reasons.

Jun 29 Roundtable (not hearing) is held by Council Member Jack Evans with no
government witnesses sworn in. DC Attorney Irv Nathan states that the
implementation plans comply with federal laws Buddy Roogow when asked
describes that the DC Wilson building could in concept have a gambling room
downstairs and that it does include software for computerized slots (not video
computerized slot machines). He also reveals that there will be hotspots and that
that these games will be offered in homes. ANC's were not given great weight and
the 20 -30 hotspots were not named. (ANC’s will now be notified of potential
hotspots with 60 day notice.)

Jul Senators Reed and Kyl issue letter to US Attorney Eric Holder stating that
internet gambling is inherently interstate and is against the law to include intrastate
gambling.

Draft prepared by Marie Drissel, September 1, 2011

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