BPM057747 LCMCS 2026 RFP.docx

<<solicitationTitle>> Solicitation #: <<solicitationNumber>> RFP Document

Lottery Central Monitoring and Control System and Related Services Solicitation #: BPM057747 RFP Document

STATE OF MARYLAND

LOTTERY AND GAMING CONTROL AGENCY (MLGCA)

REQUEST FOR PROPOSALS (RFP)

LOTTERY CENTRAL MONITORING AND CONTROL SYSTEM AND RELATED SERVICES

RFP NUMBER: BPM057747

ISSUE DATE: JULY 2, 2026

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace Advantage (eMMA) https://procurement.maryland.gov should register on eMMA https://emma.maryland.gov/.

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO RESPOND TO THIS SOLICITATION.

STATE OF MARYLAND

MARYLAND LOTTERY AND GAMING CONTROL AGENCY

KEY INFORMATION SUMMARY SHEET

Department of General Services 301 W. Preston Street Baltimore, MD 21202

Email:

Phone Number:

yasin.mohammed@maryland.gov

(410) 767-3586

https://procurement.maryland.gov/wp-content/uploads/sites/12/2024/07/Attachment-1.-No-Bid_Proposal-Notice_Vendor-Feedback-Form-1-1.docx

Address: 1800 Washington Boulevard, Baltimore, MD 21230 RSVP by July 12, 2026, by completing the form below.

https://procurement.maryland.gov/wp-content/uploads/sites/12/2024/11/Attachment-2.-Pre-Bid_-Pre-Proposal-Conference-Response-Form-v2.pdf

Submitted via this Link to Submit Questions (https://forms.gle/cHFPjDdBUrdB2dBr8)

10 % for African American MBEs.

0 % for Asian American MBEs.

_ 0 % for Hispanic American MBEs; and 10 % for Woman-Owned MBEs.

Refer to Appendix 4 for information about the MBE program and goals.

Refer to Appendix 5 for information about the VSBE program and goals.

TABLE OF CONTENTS – RFP

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

The Offeror must document in its Proposal that it satisfies the following Minimum Qualifications:

1.1.1 North American Lottery Experience

1.1.1.1 Experience. Within the previous three (3) years, the Offeror must have supplied a central monitoring and control system for at least one (1) North American provincial or state lottery.

1.1.1.2 Required Documentation. A complete description of all equipment and services, along with reference contacts for each listed lottery, must be included in the Offeror’s Proposal

1.1.2 Currently in Operation

1.1.2.1 Submission. At the time the proposal is submitted, the proposed Lottery Central Monitoring and Control System (“LCMCS”), including all proposed software and hardware, must be in operation within a North American Lottery.

1.1.2.2 Installation. At the time of installation, newer, improved releases or models of the proposed products, their architecture, or their equivalents, may be used, provided they are approved in writing by the MLGCA.

1.1.3 Subcontractors to Fulfill Minimum Qualifications

Should the Offeror intend to fulfill Minimum Qualifications using Subcontractor experience, the Offeror’s Proposal must include the operating agreement for the business relationship, including all financial terms.

1.1.4 Definition of LCMCS

Lottery Central Monitoring and Control System (“LCMCS”) means a complete, integrated lottery central monitoring and control solution, whether provided as a single system, a series of interconnected systems, a modular platform, a suite of applications, or a comparable system architecture, that collectively performs the functions required to operate, monitor, control, support, and administer the Maryland Lottery’s retail lottery operations. The LCMCS includes all associated software, hardware, terminals, telecommunications network components, data center infrastructure, interfaces, integrations, reporting tools, security controls, operational support systems, and related services necessary to meet the requirements of this RFP. A proposed LCMCS may consist of multiple systems or subsystems, provided that they operate together as a unified solution and satisfy all functional, technical, operational, security, and performance requirements applicable to the LCMCS.

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

The Maryland Lottery and Gaming Control Agency (“MLGCA”) is issuing this Request for Proposals (“RFP”) to secure a contract between the selected Offeror and the State of Maryland (“State”). The primary objective of this procurement is to acquire a comprehensive lottery central monitoring and control system, including its full installation, implementation, operation, maintenance, and all associated services, as more fully described in this Section 2.

The State intends to enter a Contract with the selected Offeror to procure the products and services detailed in this RFP. The performance period and anticipated duration of the Contract consist of an eleven (11) year base term, which includes one (1) year of uncompensated conversion activities at the initiation of the Contract. Additionally, the Contract will include one (1) five-year Option Period, and a separate one (1) twelve-month Transition Option Period. All option periods are exercised at the State’s sole discretion. Should all options be exercised, the Contract would span 17 years.

This is a Single award Contract. See RFP Section 6.5 Selection Procedures for more Contract award information.

Two or more firms may join to submit a Proposal in response to this solicitation. In such instances, the Proposal must clearly outline the specific responsibilities assigned to each participating firm and include a signed operating agreement between the firms, which shall be provided with the Proposal. One firm must be designated as the lead firm. A single authorized official from one of the participating firms must be designated in the Proposal to act as the primary liaison between MLGCA and the joint group for all contractual issues.

The Contractor must maintain full responsibility for all Contract performance, irrespective of any subcontractor involvement. Whether operating directly or via subcontractors, an Offeror delivers every product and service and satisfies all requirements outlined in this RFP.

The Contract resulting from this RFP will be non-exclusive. Nothing in the Contract precludes the MLGCA from procuring similar or related services from another contractor. The MLGCA reserves the right to secure services directly from third parties to perform any services contemplated under the Contract. The Contractor will not be entitled to any fee for services performed by third parties.

The Contractor may be entitled to receive incentive payments for exceeding performance targets. The incentive will only be applied to complete State fiscal years.

2.2 Background and Purpose

2.2.1 Project Goals

2.2.1.1 Innovative Solutions to Maximize Sales and Revenues. The MLGCA’s core mission is to generate revenue to support good causes in Maryland, including education, public health, public safety, and the environment. To that end, the RFP and resulting Contract are intended to procure a complete, turnkey LCMCS from a Contractor focused on providing innovative concepts and solutions that will increase and maximize sales and revenues to the State. MLGCA’s current suite of products has produced revenue growth and generated significant funds for the State. MLGCA desires not just to maintain, but to build on this history of success and is seeking an Offeror who can assist us with innovative concepts and solutions to increase revenues to the State. These may include, but are not limited to, new game concepts, digital integration, gamified micro-formats, and advanced retail technology.

2.2.1.2 Maintain and Expand Existing Product Offerings. MLGCA requires a Contractor that can maintain and expand its existing core products and programs that are offered and supported in the State.

2.2.1.3 Security. The MLGCA’s goal is to ensure the security of the LCMCS and maintain essential data backups, as the LCMCS will process Sensitive Data, generally referred to as Personally Identifiable Information (“PII”), such as names, addresses, bank account details, and tax identification numbers. (See IT Supplemental)

2.2.1.4 Complete LCMCS (“System”). MLGCA intends to acquire services, including but not limited to the implementation, operation, and maintenance of the LCMCS and its related systems. These services also include sales, marketing, accounting, and instant ticket inventory and distribution. Additionally, the scope of work includes the Software, Terminals, and a Telecommunications Network required to connect Retailers to the Primary Data Center (“PDC”) and Back-up Data Centers (“BDC”), Lottery Headquarters, Internal Control Systems (“ICS”), and any other locations essential for LCMCS operations.

2.2.1.5 Exceed Projected Forecasts. The Contractor is expected to implement, operate, and maintain an LCMCS that incorporates, at a minimum, the proposed best practices of the Lottery and the Contractor to achieve the Lottery’s historical high revenues and aim to exceed revenue forecasts in the future.

2.2.2 MLGCA Background

2.2.2.1 General. The MLGCA is an independent agency of the State of Maryland.

2.2.2.2 Statutory Authority. The MLGCA operates pursuant to State Government Article, Title 9, Subtitle 1, Annotated Code of Maryland, which establishes the MLGCA's purpose, powers, duties, and procedural framework, as well as COMAR Title 36.

2.2.2.3 Agency Composition. The MLGCA is composed of several administrative units or departments, all ultimately reporting to the MLGCA Director. Some MLGCA departments focus solely on regulatory responsibilities related to gaming, while others split their time between gaming and traditional lottery business matters. For purposes of this RFP, only the traditional lottery business operations are to be considered.

2.2.2.4 Commission. There is a Maryland Lottery and Gaming Control Commission (“Commission”) within the Agency that advises the Director of the Agency on the operation and administration of the MLGCA and regulates casino and other gaming in Maryland.

2.2.2.5 Creation of the Lottery. The Lottery, which was expanded and renamed MLGCA when casino gaming was approved in the State, was established by the General Assembly through the enactment of Chapter 365 of Laws of Maryland of 1972 and the voters’ approval of a constitutional amendment that same year. The amendment was ratified on November 7, 1972, and operations commenced on January 2, 1973.

2.2.2.6 Expansion of Gaming. In 2007, during the special session of the Maryland General Assembly, House Bill 4 and Senate Bill 3 were enacted to legalize Video Lottery Terminals (“VLTs”). In 2012, Senate Bill 1 – Gaming Expansion – Video Lottery Terminals and Table Games – passed the 2012 second special session of the Maryland General Assembly. Voters approved this bill in November 2012 – provisions include: the addition of table games to existing casinos and future casinos; a sixth casino; an increase in the maximum number of VLTs allowed in the State; and 24-7 casino operations.

2.2.2.7 Incentive Program. Currently, the incentive program provides a payment of 1% of the amount by which current-year audited sales exceed the most recent three (3) year average sales. The incentive applies only to the complete State fiscal year.

2.2.3 Current MLGCA Lottery Offerings and Services

2.2.3.1 Games – Generally. The MLGCA’s current portfolio includes Draw games (including monitor games), Instant or scratch games, and Fast Play.

2.2.3.2 Draw Games. Draw games are further categorized as Daily Draw (Pick 3, Pick 4, Pick 5, and Bonus Match 5), Cash Pop (drawn four times daily), Jackpot (Multi-Match, Mega Millions, Powerball), and Monitor (Keno and Racetrax®). Details about each of these games are included in Section 2.3.3.

2.2.3.3 Scratch Games. Scratch games, or Instant Games, are printed tickets with play data covered with latex.

2.2.3.4 Fast Play. Fast Play games are produced by a lottery terminal where predetermined game results are printed on demand from a finite pool of randomly generated results for that specific game.

2.2.3.5 Other Services. Other services, as explained later, include: My Lottery Rewards (“MLR”) Players Club, Terminal installation and repair, communications network, retailer and staff training, website and App support.

2.2.3.6 Warehouse Integration. The LCMCS must include tools for Contractor and Agency staff to manage scratch tickets produced by other vendors. Functionality includes, but is not limited to, inventory control, order taking, interfacing with third-party commercial carriers (delivery services), and Contractor-supplied warehouse sorting equipment, sales and financial reporting, and prize validations.

2.2.4 State Staff and Roles

In addition to the Procurement Officer and Contract Monitor, the State shall designate an informal committee, led by the Contract Monitor, to interface with the Contractor across all areas of planning, implementation, and conversion. The key functional areas include:

A. Business Case development/requirements gathering.

B. Software specification development and approval.

C. Conversion planning tasks and timelines.

D. Selection of desired equipment and optional services, if any.

E. Acceptance testing, supported by a third-party for conversion.

F. Interfacing with the outgoing vendor for data transfers; and G. Training plans.

2.2.5 Other State Responsibilities

2.2.5.1 Draw Game Drawings. MLGCA or other entities conduct the drawings, except for MLGCA’s current offerings of Keno, Racetrax, and Cash Pop, which must be vendor-provided, random-number generator (RNG)-based drawings.

2.2.5.2 Goods and Services Provided Under Other Contracts. MLGCA, through other contracts, provides point-of-sale materials and other promotional items, unless otherwise invoiced and provided for within the Marketing Fund as directed and approved by MLGCA.

2.2.5.3 Information and Data. The State is responsible for providing the limited required information, data, documentation, and test data to facilitate the Contractor’s performance of the work. It will provide such additional assistance and services as are specifically outlined in this RFP.

2.2.5.4 Coordination. MLGCA will coordinate with the outgoing Contractor to provide retailer information, historical data, and uncashed winning tickets.

2.2.5.5 Debit Card Processing.

A. The State Treasurer’s Office (“STO”) must approve banking aspects and banking arrangements associated with the resulting Contract.

B. The Contractor shall not retain fees or deduct fees that are due to the State. The Contractor shall send the MLGCA the full amount of fees due to the MLGCA.

C. The Contractor shall use a State-approved payment processing process and retain lottery revenues in an STO-approved bank and bank account. To the extent required by the STO, the MLGCA shall receive the benefits of the State under any existing contractual arrangement established by the STO, such as using State-approved payment processing providers for debit card transactions. Accordingly, MLGCA shall not be responsible for the payment of transaction processing fees associated with debit lottery transactions.

2.2.5.6 Sales Staff Device Configuration. For the sales force automation tool devices, MLGCA IT staff shall image all devices and install software that limits what can be installed on them.

2.3 Responsibilities and Tasks

2.3.1 Additional Primary Tasks – To be Included in the Contract

2.3.1.1 Secure Communications Network. The Contractor shall provide a redundant, primarily cellular communications network.

2.3.1.2 Conversion Plan and Support. The Contractor shall meet the go-live date with 100% LCMCS operability. Full LCMCS system functionality shall be in place by the go-live date. The switch from the current incumbent system must minimize business disruption. The Contractor shall provide a comprehensive report of the conversion plan before implementation.

2.3.1.3 Field Service Plan. The Contractor shall provide all field service staff and equipment.

2.3.1.4 Staffing. The Contractor shall provide all staff for conversion and ongoing Contract performance.

2.3.1.5 System Security. The Contractor shall maintain the system security of the LCMCS.

2.3.1.6 Promotion Capabilities. The Contractor shall take over the management and operations of any ongoing promotions that the MLGCA has already launched and allow for a seamless player experience for the Maryland Lottery Rewards Program.

2.3.1.7 Training and Demonstration Center. The Contractor shall provide and maintain a retail training and demonstration center for use by the MLGCA.

2.3.1.8 New Equipment. All equipment furnished shall be new and not refurbished.

2.3.2 Contractor Space

2.3.2.1 General Space Requirements

A. General. The Contractor shall supply all necessary facilities and space required to fulfill its contractual duties for both staff and operations. This requirement includes, but is not limited to, data centers, warehouses, testing and operations centers, and any additional specialized areas specified in the RFP.

B. Co-Location Permitted. Some functional area space may be co-located within the MLGCA Headquarters at Montgomery Park Business Center, 1800 Washington Boulevard, Baltimore, MD 21230.

C. Costs. The Contractor shall be responsible for its costs related to, but not limited to, the acquisition, build-out, furnishings, maintenance, utilities, and cleaning of all building space required to fulfill the Contract terms. Any tenant improvements shall be at the Contractor's expense.

D. Design and Layout. The design and layout of all Sites shall be pre-approved by MLGCA, and it shall not be identified externally as being the premises of the Contractor.

2.3.2.2 Near Lottery Headquarters

A. Distance. Operations Offices and testing locations shall be located within five (5) miles of MLGCA Headquarters.

B. Current MLGCA Headquarters. MLGCA is currently located at the Montgomery Park Business Center. Information on the cost per square foot and the layout of the available space at Montgomery Park can be obtained from the building owner. The current contact for this information is Emily Urban (Stein) 410-779-1290 (direct line), 443-895-0364 (cell), Himmelrich Associates, Inc., 1340 Smith Avenue, Suite 330, Baltimore, MD 21209.

2.3.2.3 Data Center Sites for LCMCS

A. General. The Contractor shall maintain a Primary Data Center (“PDC”) and at least one remote hot Backup Data Center (“BDC”).

B. Data Center Requirements. See section 2.3.6.

2.3.2.4 Other In-State Sites to Support LCMCS and Sales Teams A. General. The Contractor shall maintain various Sites throughout the State to facilitate scheduling and the delivery of LCMCS equipment and supplies to Retailers throughout the State.

B. Other Sites to Support LCMCS - Requirements. The Offeror shall identify all sites, both within and outside Maryland, that will support MLGCA's business, including the location and primary function of each site. MLGCA will not specify the minimum number of sites or locations required. All sites shall comply with the Multi-State Lottery Association (“MUSL”) rules, as applicable. Any warehouse space more than 20 miles from Baltimore must include at least 150 sq. ft. of office space available for use by MLGCA Sales Staff.

C. Training and Demonstration Center. The training center is to be in, adjacent to, or within 5 miles of the MLGCA Headquarters and available for Lottery use on 24-hour notice. The space and equipment shall be available for the life of the Contract. The lottery equipment in the demonstration center does not need to be connected permanently. This space should be designed and developed as a lottery retail location. Its intended functions comprise:

1. Facilitating staff training and equipment orientation through terminal operation.

2. Serving as a venue for demonstrations involving prospective retailers or other stakeholders; and

3. Acting as a filming set for television advertisements. The facility must accommodate supplemental lighting for commercial production, although the Contractor will not be responsible for providing such equipment.

2.3.3 Retailer Equipment, Supplies, and Hardware

2.3.3.1 Retailer Terminals

A. General. The Contractor shall provide a range of Retailer terminals to meet the diverse requirements of businesses throughout Maryland. While the Lottery does not specify any particular terminal models, all terminals shall support advertising monitors, jackpot signs, ticket checkers, and monitor-games monitors. The following data reflects the current deployment figures for these terminals:

* These figures are estimates and represent the maximum number to be provided within the base fee.

B. Installation. The Contractor is responsible for installing terminals, supplemental hardware, and LCMCS connections at Retailer sites. To ensure an aesthetically functional and “professional” appearance, all installations must be performed without any loose wiring visible to the public.

C. Upgrades. As new games or features are introduced, the Contractor is responsible for developing and installing all required software upgrades. Throughout the term of the Contract, the MLGCA may require technology terminal upgrades to keep pace with industry advancements. To maintain a positive image of the MLGCA and ensure that internal components and software remain current and supported, Offerors should include a plan to refresh terminals after 5 years of operation.

D. Ease of Use. Both clerk-operated and self-service terminals shall be fast, reliable, and designed with intuitive user interfaces. Paper replacement in these systems shall be simple and straightforward.

E. Language Options. Currently, clerk terminals have a Korean language option. The Lottery may require that self-service terminals include functionality to display player instructions in Spanish or another language.

F. ADA Compliance. Self-Service terminals and customer interfaces must be ADA-compliant.

2.3.3.2 Retailer Responsibilities (Not Contractor)

A. General. Before a Contractor work order for the installation of lottery equipment can be created, a Retailer shall ensure that specific equipment and conditions are provided.

B. Quad Outlet. The Retailer shall provide a quad electrical outlet at the terminal location.

C. Access for Wires. The Retailer shall be responsible for completing all necessary hole drilling on the countertops or side panels for equipment cable runs before the lottery equipment is installed.

D. Outlet Distance. The Retailer shall ensure that outlets are within 5 ft of terminals, signs, monitors, and other lottery equipment that requires power. Power strips are permitted only where permitted by the applicable code.

E. Loss or Damage. Retailers shall be liable for any loss or damage to the Contractor-provided equipment, including the cost of repairing or replacing it.

F. Replacement of Keys. Retailers shall be responsible for the costs of replacing keys for self-service lottery equipment.

G. In-Wall Wiring. If a Retailer requires in-wall wiring for terminals, monitors, and peripherals, the Retailer is responsible for installing it.

H. Retailer Supplied Monitors. For monitor games, any Retailer-provided monitor shall be safely mounted with the necessary electrical components and Contractor-approved signal boosters, splitters, or video cables terminating at the video component or terminal.

2.3.3.3 Monitors

A. General. For Retailer locations, the Contractor shall provide and install monitors of various sizes to display Keno, a horse racing game (currently Racetrax™), and any other monitor games that the Lottery may offer in the future. A separate monitor for advertising near the terminal is also required.

B. Monitor-Game Monitors. As directed by the Agency, the Contractor is responsible for installing at least one high-definition (HD) monitor for every Lottery monitor game at any Retailer that submits a request. Upon request, the Agency can provide photographs or sample layouts showing existing monitor setups at Retailer locations.

C. Advertising Monitors. For each terminal, the Contractor shall install a minimum of one HD advertising display monitor. These monitors shall function as digital menu boards capable of displaying real-time messaging and advertising content dedicated to Lottery promotions and products, including scratch games, Fast Play games, and jackpots.

D. Mounting Brackets. As requested by the Agency and at no additional cost, the Contractor shall provide various types of monitor mounting brackets (e.g., fixed or articulating) for Retailer locations.

E. Retailer Supplied Monitors. For monitor games, the Contractor shall support any Retailer-provided monitors that the Retailer has safely mounted with the necessary electrical components and Contractor-approved signal boosters, splitters, or video cables terminating at the video component or terminal.

F. Monitor Installation Not Required. The Contractor will not be required to install a monitor if:

1. Mounting brackets are more than 12 ft. high.

2. Ceiling mounts are required.

3. It is more than 25 ft. from the terminal or control device; and

4. It is more than 5 ft. from an electrical outlet (power strips are not an acceptable alternative to an outlet).

G. Current Monitors Deployed. MLGCA utilizes a variety of HD monitor sizes at Retailer locations based on each location's needs.

2.3.3.4 Other Retailer Equipment and Supplies

A. General. The Contractor shall acquire, warehouse, install, relocate, maintain, repair, and replace all existing Retailer equipment, including peripheral equipment and supplies required under the Contract.

B. Debit-Card Readers. All self-service equipment shall include a debit card reader. The Contractor shall provide a turn-key debit processing system that integrates with the State-approved payment processing provider that the STO has contracted with to hold State funds. The turnkey processing system shall include, but not be limited to, staff to conduct reconciliations and resolve complaints. The Contractor shall use the contract established by the STO for payment processing to ensure that State funds remain with a State-approved banking institution. Accordingly, MLGCA will not be responsible for payment of transaction processing fees associated with lottery debit transactions.

C. Debit PIN Pads. Upon the MLGCA's request, the Contractor is responsible for providing debit PIN pads for clerk-operated terminals. This requirement assumes that such hardware would be limited to one unit per site and installed exclusively at locations without self-service terminals. Based on these criteria, the estimated total is approximately 2,000 Privacy PIN pads. Comment by Yasin Mohammed: Any security requirements for the PIN pads? Covers for privacy, etc?

D. Customer Transaction Display. The Contractor shall provide a customer transaction display for each terminal. Currently, a separate standing display is used.

E. Signs. As directed by the MLGCA, the Contractor shall provide and install signage at Retailer locations. The signage includes lighted logo signs and two- or three-sided jackpot signs that display multiple jackpot amounts. Currently, 3,700 hanging jackpot signs and 2,500 logo signs are deployed. The Contractor shall install any additional signage provided by the Lottery.

F. Logo Updates. The Contractor shall be financially responsible for updating all signage and materials, including all retailer consumable materials, at the Agency’s discretion, whenever logos for the Agency or any games offered by the MLGCA are modified.

G. Play Stations. To facilitate the display of play slips, brochures, and pencils, the Contractor shall provide 3,500 ADA-compliant play stations for installation at Retailer locations. The Contractor shall also supply all such materials displayed.

H. Ticket Checkers. The Contractor shall provide both wired and wireless ticket checkers for Retailer locations, ensuring each clerk terminal is equipped with one unit.

I. Cash Drawers. The Contractor shall provide 4,500 cash drawers.

J. Other Supplies. To support the lottery business, the Contractor shall acquire, warehouse, and deliver various Retailer supplies. These items include, but are not limited to, pencils, play slips, ticket stock, and notepaper pads featuring the Lottery logo.

K. Accessibility. Upon the Retailer's request, the Contractor shall be responsible for supplying equipment that addresses accessibility needs or accommodates Retailers with visual impairments.

L. Approval of Equipment and Supplies. Before any equipment or consumables can be used at a Retailer location, they must receive Agency approval. All equipment shall undergo testing by an independent testing laboratory, for example, Underwriters Laboratories.

2.3.4 Lottery Games to be Supported by the Contractor

2.3.4.1 Support Existing Lottery Games

A. General. The Contractor and the LCMCS shall support all current Maryland Lottery games as of the date of the execution of the Contract.

B. In-State Draw Games Using Smart Play RNG. Through a contract with Smart Play, MLGCA currently uses a Random Number Generator (“RNG”) to conduct several draw games, including Pick 3, Pick 4, Pick 5, Multi-Match, and Bonus Match 5.

C. Multi-State Games. The current multi-state games offered by the Lottery are Mega Millions and Powerball. Any game modifications or line extensions the Lottery decides to adopt must be supported for these offerings.

D. Fast Play. Fast Play games offered by the Lottery include standard and progressive jackpot prize games. Support for these games includes developing the Fast Play artwork, game design, and prize structure. The Contractor’s support of Fast Play games shall: permit selection and release of new games as scheduled by MLGCA; provide for results to be determined from a pool of “tickets”; and be designed in a manner and style similar to scratch tickets. The Contractor shall conduct a trademark search and provide a legal opinion letter for every Fast Play game produced for MLGCA. Requirements include:

1. Trademark and Service Mark Search. The Contractor or competent outside trademark counsel hired by the Contractor at Contractor’s expense shall conduct all appropriate trademark, service mark, trade name, and trade design searches for all game names used throughout the term of the Contract.

a) Legal Opinion. A written legal opinion regarding the permissible use of each game name based upon a search of registrations and applications for registration filed with the United States Patent and Trademark Office, applicable state agencies, and other pertinent sources must be submitted for MLGCA’s approval. This legal opinion must satisfy the MLGCA’s standards, including but not limited to the scope and terms of the opinion. The Contractor must submit that opinion to the MLGCA prior to completing any development specifications. The Contractor shall provide the services required by this section at no additional cost to the MLGCA. (Note: Any trademarks and service marks owned by the MLGCA need not be searched.) Nothing in this paragraph shall diminish the warranty or limit the liability of the Contractor as otherwise provided herein.

b) Artwork and Design. Upon the MLGCA’s request, the Contractor or its outside trademark counsel shall also conduct all appropriate intellectual property searches regarding any artwork, any design, and any other aspect of the Fast Play game.

c) Second Chance Games and Promotions. The written legal opinion shall also address whether use of the name, and any other requested aspect of the Fast Play game, is permissible in second-chance games and other promotions by the MLGCA.

d) Updated Opinion. If determined necessary by the MLGCA, Contractor shall provide an updated opinion at any time prior to the actual use of the name or other aspect of the Fast Play game.

e) Name Already in Use. If the name or design (or other aspect of the Fast Play game) is currently in use or subject to a trademark or other intellectual property right, the Contractor or its trademark counsel shall, at the request of the MLGCA, use reasonable efforts to obtain the consent of the trademark or other intellectual property right owner to use by the MLGCA. If the Contractor is unable to obtain the consent of the owner, the parties shall designate a substitute game name or names acceptable to the MLGCA, for which Contractor or Contractor’s outside trademark counsel shall conduct further searches as provided in this Section.

f) Registration of New Marks. Pursuant to Attachment M, new trademarks and service marks developed for the MLGCA shall be the property of the MLGCA and will be registered by the Contractor in the name of the MLGCA at its direction. The Contractor must obtain written approval from the MLGCA prior to incurring any registration cost. The Contractor shall keep all marks current, active, and protected during the term of the Contract and any extension thereof.

2. Licensing Agreements. The Contractor, when required by the MLGCA, shall obtain and be responsible for any necessary licensing agreement for any game to be printed during the term of the Contract. The Contractor must obtain approval from the MLGCA for any licensing fee before incurring any costs associated with it. The Contractor is responsible for submitting MLGCA-approved licensing fees to the MLGCA for payment. The MLGCA shall not be charged for any additional fees by the Contractor for the services performed to secure these licensing agreements.

3. Fast Play Ticket Artwork. The Contractor shall provide development specifications for each Fast Play game to be offered for approval by the MLGCA. The designs shall be vetted by the Contractor’s programmers prior to being included in the development specifications. The Contractor shall use the approved game artwork to create the files necessary for self-service vending machines and Fast Play game menu screens.

4. Advertising Monitor Interrupter Screen. The Contractor shall develop functionality that enables a full menu of available Fast Play games to interrupt the scheduled show on Retailer advertising monitors in retail locations when the Retailer selects the Fast Play menu. The Contractor shall maintain the graphics of games as directed by the Lottery based on game launches and closures.

5. Independent Review. The Contractor shall engage an independent Certified Public Accountant, acceptable to the MLGCA, experienced in lottery operations, to review the procedures and controls employed by the Contractor during the software development of each Fast Play Game. The Certified Public Accountant shall submit a secure PDF report directly to the MLGCA detailing the related findings and specific tests conducted on the Contractor’s development process. These evaluations and tests shall include, at a minimum, an assessment and review of the controls for the seeding methods used to generate winners across High, Mid, and Low Tier prize levels, as well as non-winners, in accordance with the final approved prize structure.

E. Monitor Games. MLGCA currently offers Keno, Keno Bonus, Keno Super Bonus, Packaged Keno to Go, Racetrax™, and Racetrax™ Bonus monitor games. To support monitor games, the Contractor shall provide and utilize automated random number drawing equipment certified by GLI. Additionally, the Contractor shall update graphics as directed by the Lottery to maintain fresh and appealing winning number drawing displays.

F. Cash Pop™. The Lottery offers a third-party owned game, Cash Pop, drawn 4 times a day. The Lottery pays license fees to the third party.

G. Instant Ticket Scratch Games. The Contractor shall support all scratch games released by the Lottery, including The Big Spin. This support shall include the graphics required for advertising monitors at Retailer locations.

H. Timing for Release. The Contractor shall implement all requested game modifications in accordance with a schedule agreed upon with the Agency, including User Acceptance Testing (“UAT”). The Contractor shall launch each game within 120 days of the Agency's approval of the specifications.

I. Step-Down of Games. For both retail and subscription sales, the LCMCS shall have the capability to gradually reduce the number of advance drawings available for purchase when the Lottery determines to modify a product or end a product on sale.

2.3.4.2 Develop and Support Future Lottery Games

A. General. The Contractor shall be required to implement any new game the Agency may choose to offer at no additional direct cost to the Agency.

B. Costs. Contractor costs to launch new games shall be recovered through the sale of the new Lottery game based on the agreed-upon fixed percentage of sales.

C. Specialized Hardware. Additional specialized hardware not included in this RFP may be required by the Agency. Specialized hardware shall be paid for by the Agency.

D. Licensing. The Agency may request certain licensed properties that are subject to third-party (non-Contractor) licensing fees. Third-party licensing fees that are required but not included in Offeror’s proposal shall be paid for by the Agency.

E. Development. The Contractor shall be responsible for developing specifications for Lottery approval, developing required software, performing acceptance testing, and designing ticket layouts and play slips, for final Lottery approval.

F. Timing for Release. The Contractor shall launch all requested games in accordance with a schedule agreed upon with the Agency, including UAT. In no event will a game launch exceed 120 days after the Agency approves the specifications.

G. Training. The Contractor shall be responsible for providing any Retailer training needed for new games.

2.3.5 Instant Ticket Warehousing

2.3.5.1 General Information – Outside the Scope of this Contract–Note: The Contractor is not responsible for work described in this 2.3.4.3 Section.

A. Agency Staff. The Agency staffs the instant ticket (scratch ticket) shipping operation from its Baltimore headquarters warehouse.

B. Costs of Shipping Instant Scratch Tickets. Under the current Instant Ticket Contract, the primary scratch ticket contractor is responsible for all shipping costs for instant scratch tickets. The primary printer must supply all shipping materials, including containers such as Gaylords, boxes, and envelopes, as well as labels and label printers that produce labels acceptable by the delivery company.

2.3.5.2 Instant Ticket Ordering

The Contractor shall have processes for Retailers to order new inventory and have it delivered to the Retailer, including:

A. Pick and Pack System. The Contractor shall provide hardware and software with an interface to an Agency-approved common carrier. This includes, but is not limited to, PCs, document printers, scanners, and the supporting communications network located within the Lottery warehouse. The Contractor shall support connecting to and using label printers to produce shipping labels. The current carrier is Falcon, but United Parcel Service (UPS) is also an alternative.

B. Additional Carriers. The Agency may decide to use more than one carrier. The Contractor shall have a process that distinguishes between orders within the Agency’s warehouse and one that facilitates the delivery of those items.

C. Sorter System. The Contractor shall provide a warehouse instant ticket order sorter system to support the Agency’s growing scratch game sales. Ideally, the sorter should accommodate tickets 12” and longer, 8”x8” tickets, and other oversized products. At a minimum, the sorter system shall include a return station and 7 fully equipped packing stations, including, but not limited to, PCs, scanners, and manifest printers.

D. Real-Time Integration. The Agency requires real-time inventory control and integration with its sales and Retailer ordering systems.

E. Inventory Statuses. The Contractor’s LCMCS shall support, at a minimum, the following instant ticket pack statuses:

The LCMCS shall support additional statuses as directed by the Agency, or as offered by the Contractor.

F. Reissuance of Packs. The LCMCS shall support a simple process for returning unopened packs of instant tickets to inventory and for their subsequent reissuance to other Retailers.

2.3.6 Central System Requirements

2.3.6.1 Maryland Operations Center.

A. General. The primary site for day-to-day systems operation shall be located within 5 miles of the MLGCA’s Baltimore Lottery Headquarters.

B. Back-up Operations. Under normal failover scenarios, the Maryland Operations Center staff are expected to maintain system functionality from either the Primary Data Center (“PDC”) or Backup Data Center (“BDC”). If the Maryland Operations Center is unavailable, trained staff at a secondary location must be prepared to assume all operational responsibilities.

2.3.6.2 Primary Data Center (“PDC”).

A. General. The Contractor shall provide a fully equipped PDC with all hardware, software, and infrastructure needed to operate the entire LCMCS.

B. Environmental Considerations. The PDC must comply with all DoIT, MLGCA, and MUSL security, power, and environmental requirements. There must be redundant communications network paths and Uninterruptible Power Systems (UPS) capable of supporting 150% of the maximum expected load.

2.3.6.3 Remote Backup Data Center (“BDC”)

A. General. The Contractor shall provide a redundant remote hot BDC, fully equipped with all hardware, software, and infrastructure needed to operate the entire LCMCS. The BDC may be located outside of Maryland. A hot BDC is defined as an operating system that receives a mirror image of all transactions on a real-time basis from the active system, with the capability to automatically take over processing in the event of a failure at the PDC, with minimal service disruption to the LCMCS, and with no loss or corruption of data.

B. No Interruption. The BDC shall ensure continuous operation of the LCMCS without interruption.

C. MLGCA Backup Data Center. The Contractor shall supply a separate, dedicated, minimum 200-square-foot secure space in the BDC or another mutually agreed-upon data center for MLGCA's backup servers and other equipment. This space shall meet the same requirements as the PDC, including security, power, network, and environmental requirements.

D. Environment Considerations. The BDC shall comply with all DoIT, MLGCA, and MUSL security, power, and environmental requirements. There shall be redundant communications network paths and Uninterruptible Power Systems (UPS) capable of supporting 150% of the maximum expected load.

2.3.6.4 Ticket Scanning Messaging

A. Non-Winning Tickets. The Lottery and Contractor shall jointly develop standard messages that will be displayed on all devices when non-winning tickets are scanned. Different messages are required when draws remain on a ticket.

B. Winning Tickets. The Lottery and Contractor shall jointly develop standard messages that will be displayed on all devices when winning tickets are scanned. Messages will vary depending on whether draws remain or have concluded. For jackpot games, the Lottery may dictate that the annuity value is displayed, or that the message is “Jackpot”.

C. Retailer Advertising Display. The Contractor and the Lottery shall jointly develop images and messaging for Retailer advertising displays regarding the award of promotional tickets or vouchers, as well as Big Spin scratch game prizes.

2.3.6.5 Additional Game Requirements

A. Non-Winning Tickets. Following the final drawing on a ticket, the LCMCS shall maintain non-winning ticket data within the system for a minimum of 182 days.

B. MUSL Game Requirements. The LCMCS shall be MUSL Rule 2-compliant, with a dual-security number that is not recorded on the host, and shall validate a ticket when the bar code can’t be scanned.

C. Instant Scratch Game Settlement Options. The LCMCS shall be able to settle instant ticket packs by charging Retailers upon activation, 60 days after activation, or upon reaching a game-specific threshold percentage of validations, typically 80% of low-tier validations. The LCMCS shall be configurable to adjust the settlement terms at the Lottery’s request. For Retailers using single-ticket accounting, settlement occurs on a per-ticket basis at the time the ticket is sold.

2.3.7 Instant (Scratch) Ticket Ordering Program

2.3.7.1 General

A. TelSell System. To facilitate Retailers' identification of ticket delivery needs, the MLGCA requires a telephone-based ordering system. The Contractor shall provide a full-function order creation and processing system for scratch games that interfaces with the warehouse operation and common carriers. The TelSell system shall assist staff in recommending optimal orders for retailers.

B. Staffing. The Contractor shall provide a system and staffing to make and receive Retailer calls to place orders.

C. Supporting Other Languages. The Contractor shall have a manner to support and service Retailers who are Korean, Spanish-speaking, or any other language determined by MLGCA.

2.3.7.2 Key Features of the Ticket Ordering Program

A. Game Allocations. The Contractor shall create initial game allocations for monthly launches based on individual Retailer sales data, number of game facings, and the specific games being launched.

B. Auto-Ordering. The Contractor shall have the capability in the LCMCS to create an order for a Retailer without Retailer interaction. These orders are based on estimates of available inventory at the Retailer and games available for distribution.

C. On-Demand. The Contractor shall have the capability in the LCMCS to accept and fulfill terminal-generated orders from Retailers.

D. Walk-In Orders. The Contractor shall have the capability in the LCMCS to accept and fulfill…