Bid for DC scratch-off lottery contract hits snag

WASHINGTON (AP) - The local company that has a majority share of the District of Columbia's lottery contract is at least temporarily out of the running for a chance to control the city's instant scratch-off tickets.

Veterans Services Corp. filed a protest Friday with the district's contract appeals board, arguing that its joint venture with a Canadian firm was approved too late by city officials. As a result, the venture says its bid for the scratch-off contract was disqualified.

VSC is a subcontractor on the $38 million lottery contract that was awarded to Greek gaming giant Intralot in late 2009. A federal grand jury is investigating the circumstances surrounding that contract, and numerous officials are under scrutiny.

VSC is asking for the city to accept its bid or to rebid the scratch-off contract.