LottoFairness.ca releases outstanding questions on contract - Months Later, Atlantic Lotto Still Fails to Answer Fully



    HALIFAX, Oct. 22 /CNW/ - LottoFairness.ca today released correspondence
containing unanswered questions about the untendered iBingo contract that
Atlantic Lotto gave to a foreign corporation.
    Yesterday was the six-month anniversary of the outstanding questions,
asked on behalf of Canadian company Parlay Entertainment.
    "We have been trying for more than half the year to lift the shroud of
secrecy that surrounds this contract," said Scott White, CEO of Parlay and
founder of LottoFairness.ca. "We launched our campaign after Atlantic Lotto
failed to give clear answers to simple questions."
    Unanswered to this day are the following basic questions about the major,
untendered contract given by Atlantic Lotto to a Swedish interest:

    
    - Was this procurement opportunity advertised on Atlantic Lotto's website
      in accordance with previously announced Atlantic Lotto practice?
      First asked February 1. Re-asked March 21. Still unanswered.

    - At what date was Boss Media actually selected by Atlantic Lotto to
      commence development of an Internet bingo system for Atlantic Lotto?
      First asked March 21. Still unanswered.

    - When did Atlantic Lotto begin discussions with Boss Media?
      First asked March 21. Not clearly answered by Atlantic Lotto's
      October 2 news release. Still outstanding.

    - Did the discussions or proposed award arise out of any business or
      personal relationships between Boss Media personnel and Atlantic Lotto
      personnel existing prior to the commencement of discussions on the
      Internet bingo contract?
      First asked March 21. Still unanswered.

    "Atlantic Lotto belongs to the governments and people of Atlantic Canada,
said Scott. "It has been wrong to keep the process secret. It was wrong not to
make a public announcement of its contract for several months."
    Atlantic Lotto did not publicly announce that it had a contract with Boss
Media until October 2. The announcement came 237 days after the foreign
company said the contract was signed. It came 124 days after the foreign
company confirmed the identity of Atlantic Lotto as its contract partner.
    LottoFairness.ca is a campaign to ensure that Atlantic Lotto never makes
secret, untendered deals again.

    TEXT OF MARCH 21, 2007, LETTER TO THE ATLANTIC LOTTERY CORPORATION FROM
    LEGAL COUNSEL FOR PARLAY ENTERTAINMENT:

    March 21, 2007

    Mr. William J. Parsley
    General Counsel
    Atlantic Lottery Corporation
    P.O. Box 5500
    922 Main Street
    Moncton N.B.  E1C 8W6

    Dear Mr. Parsley:

    Re: Parlay Entertainment Inc.

    I refer to your letter of February 21, 2007 in response to my letter of
February 1, 2007. I would like to respond to and comment on certain of the
issues raised in your response.
    Your letter appears to confirm that no public tendering process has been
followed in relation to this procurement by the Atlantic Lottery Corporation
("ALC") of an Internet bingo product, despite the announced policy of ALC to
put contracts of a value greater than $50,000 out to public tender. How does
ALC's course of action in this matter square with the statements on your
organization's website regarding public tendering of contracts?
    You state that "Parlay representatives presented a PowerPoint slide
presentation in relation to products and services Parlay could provide to
ALC." A point of clarification is needed here. Parlay representatives did
visit ALC's offices and did make a presentation while there. However, they did
not do so in response to an invitation by ALC, nor did they make a
presentation on Parlay's capabilities in the area of Internet bingo. Rather,
Parlay representatives made a general presentation on the opportunities
arising out of Internet bingo in the lottery industry.
    Parlay did not have an opportunity at any time to make a technical
presentation on their product to ALC nor was Parlay ever advised by ALC in any
fashion, by letter, public notice or oral communication, that ALC was
intending to purchase or contract for an Internet bingo product.
    Our client entertains considerable doubts over the assertion that ALC
"engaged in extensive research to identify whether there were potential
suppliers who could meet ALC's requirements." Given that Parlay, a
world-leader in Internet bingo systems, was not afforded an opportunity to
demonstrate its product capabilities to ALC management, we wonder to what
extent this research was actually conducted.
    Were other potential suppliers beside Boss Media afforded an opportunity
to demonstrate their product capabilities at any time? Were active inquiries
made in relation to suppliers in Atlantic Canada, other parts of Canada and
the United States prior to opening negotiations with Boss Media, a Swedish
company?
    Moreover, we would appreciate further clarification on the following:

    1- Was this procurement opportunity advertised on ALC's website in
       accordance with previously announced company practice?

    2- Is it ALC's intention to justify this contact award on a "sole-
       source" or "single-source" basis?

    3- When does ALC intend to launch its Internet bingo product?

    4- At what date was Boss Media actually selected by ALC to commence
       development of an Internet bingo system for ALC?

    5- When were discussions first started by ALC with Boss Media?

    6- Did this proposed award arise out of any business or personal
       relationships between Boss Media personnel and ALC personnel which
       existed prior to the commencement of discussions on the Internet bingo
       contract?

    Our client remains very concerned by this apparent initiative on ALC's
part to enter into a large contract with a foreign supplier, without being
afforded a fair opportunity to demonstrate its product's capabilities and
suitability for ALC's purposes.
    This is all the more the case because Parlay is a Canadian company and
harboured an expectation, perhaps ill-founded, that it would be allowed to
make a fair bid for a very significant piece of business from one of Canada's
leading lottery corporations.
    I look forward to an early response to the above questions.

    Yours very truly,

    Mark N. Sills
    




For further information:

For further information: Michael Dunn, (902) 229-5378

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