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D.C. Scratch-Off Lottery Vendor Avoids Participation Law

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A company that provides scratch-off lottery tickets in D.C. has been avoiding a city law.
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A company that provides scratch-off lottery tickets in D.C. has been avoiding a city law.

For more than seven years, the company providing scratch-off lottery tickets in D.C. has managed to avoid a city law that requires participation by local businesses in major contracts.

D.C. law requires that local businesses receive at least 35 percent of major contracts. The law was approved in 2005, a few months after Scientific Games Corp. won a $50 million contract as the city's scratch-off ticket vendor.

Documents obtained by the Associated Press show that the chief financial officer, who is in charge of the lottery contracts, made no effort to comply with the law before the contract expired in March.

And now the CFO's office has awarded Scientific Games a new contract similar to the old one. This one is worth $40 million over four years, and also does not meet the 35 percent requirement for local contracting. The CFO's office tells the AP that it will apply for a waiver for the 35 percent threshold.

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