Monday, October 31, 2011

Here's the story on DC Lottery's gaming contractor

The company that has 51 percent equity in D.C. Lottery’s operation is a little known firm called Veterans Services Corp. (VSC)

What role does VSC play?

Intralot, a Greece-based gaming company, won the city’s $38 million lottery contract in 2008. Council members wanted Intralot to have a local partner. That partner became Veterans Services Corp. in 2009. According to the Washington Post VSC holds 51 percent of the equity in the joint venture running day-to-day lottery operations.

VSC was formed in 2009. It was just starting out when inspectors from the District of Columbia Department of Small and Local Business Development conducted a site visit as part of the District's business certification process.

The document below was the result of inspection in August 2009.

VSC was approved as part of the lottery contract by the District Council in Dec. 2009, less than four months later.

VSC describes itself, in documents to the District, as “a professional services consulting and professional staff augmentation company.”  It says it can deploy staff with security clearances, and people with skills such as “certified information systems auditors.”

VSC, along with Intralot and D.C. Lottery, will be running gambling system that delivers poker, bingo, blackjack, and slots to District residents, and in bars, restaurant and hotels in neighborhoods.

Among its skills, the company said on government documents that "VSC has an extremely strong IT practice providing a wide range of services, including; Network Security, Systems Migration and Deployment, Network Operations, and Data Base Management. VSC technical programming expertise, includes, but is not limited to: VBA, UNIX, SAS, SQL, etc.". 

What the District inspectors found, was an operation being run out of home that lacked records. And despite that technical expertise cited by VSC, the site visit report by the District's inspectors found that of the company’s had two Dell computers and “one was not working properly.”

The city’s site visit report also includes some check-off sections, Y/N and N/A (non applicable.)

It found:

Bookkeeping and other record keeping – N

Payroll Maintenance – N

Receipt of business telephone calls and phone – N

Receipts evidencing payment of telephone service by the firm - N

According to city records, VSC was certified Aug. 28, 2009 for two years.

Here is the document

Click to enlarge

There's more: for the full document PDF click here

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