Still Waiting for Answer on Contract - Months Later, Atlantic Lotto Still Won't Point to Source of Key Requirement

    HALIFAX, Oct. 25 /CNW/ - today released unanswered
correspondence about the source of what Atlantic Lotto says was a key
requirement for the iBingo contract that eventually went to a foreign
    "Our client is most surprised to learn of the ALC's requirement that
prospective suppliers be members of the World Lottery Association or a
supplier to a member of the WLA," says the June 19 letter, written on behalf
of Canadian company Parlay Entertainment. "It would be useful to learn where
this requirement is published."
    To this day, Atlantic Lotto has failed to show anywhere that it published
or posted its World Lottery Association requirement, says Scott White, CEO of
Parlay and founder of "At no time was this requirement ever
communicated to us, not even when I visited the Atlantic Lotto offices," he
    The first public mention of this requirement appears in an October 2 news
release,(*) issued by Atlantic Lotto more than eight months after the contract
was awarded: "In this case, ALC wanted a supplier that reflected international
standards for social responsibility as required by membership in the World
Lottery Association. More than 140 companies are members of the WLA."
    Aside from never having been made public, White says the requirement of
World Lottery Association membership is irrelevant to the issue of tendering.
"It's a red herring. It fails to explain why there was no open, competitive,
public tender," he says.
    In addition to the approximately 140 government-controlled lottery
companies that belong to the World Lottery Association, 59 suppliers,
including five Canadian firms, are associate members. These suppliers were not
invited to submit bids for Atlantic Lotto's iBingo contract because no
competitive bids were solicited.
    "Show us where this requirement of WLA membership was posted. We're still
waiting for an answer to the June 19 letter," White says. "We're also waiting
for a satisfactory reason why there was no open tendering process, as required
by the Atlantic Procurement Agreement." is a campaign to ensure that Atlantic Lotto never makes
secret, untendered deals again.

    (*) Atlantic Lottery Corporation, "ALC outlines facts regarding
        procurement procedures," News Release (October 2, 2007).


    June 19, 2007
    File No.: 230544.00014


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

    Dear Mr. Parsley:

    Re: Parlay Entertainment Inc.

    Thank you for your June 11, 2007 reply to my letter of March 21, 2007.
    Our client is most surprised to learn of the ALC's requirement that
prospective suppliers be members of the World Lottery Association or a
supplier to a member of the WLA. At no time was this registration requirement
ever communicated to Parlay Entertainment Inc. and certainly was not mentioned
during Mr. White's visit to your offices to discuss the world market for
Internet bingo systems. It would be useful to learn where this requirement is
    We recall in this connection, the undertaking made to Parlay at the time
of Mr. White's meeting with ALC that in the event that the ALC were to explore
the acquisition of an online bingo system, Parlay would be kept apprised of
    We are attaching for your information, a copy of a press release which
your supplier Boss Media issued in Swedish only on February 1, 2007
( announcing the signing of a contract
between Boss Media and the Atlantic Lottery Corporation.
    This press release was, interestingly enough, not issued in Canada and
apparently not in English. Thus, no Canadian supplier was aware of the ALC's
February 1, 2007 contract award to Boss until Boss' English language press
release of a few weeks ago.
    We continue to think that this contract award was made contrary to ALC's
publicly announced procurement guidelines and will be taking appropriate
action with regard thereto.

    Yours sincerely,

    Mark N. Sills

For further information:

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

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