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D.C. Council Rejects New Lottery Contract

POSTED: 5:34 pm EDT May 13, 2008
UPDATED: 7:19 pm EDT May 13, 2008

The D.C. Council blocked a move by city officials to hire a new contractor to run the District's lucrative lottery system.

Tuesday's lopsided vote to table the lottery change was a major setback for Chief Financial Officer Nat Gandhi and Mayor Adrian Fenty, News4's Tom Sherwood reported.

Businessman Leonard Manning has run the D.C. lottery since it began in 1983. He's faced increasing complaints that his contract is too expensive, technically out of date and doesn't bring in enough money.

City financial officials wanted to turn the lucrative lottery over to Warren C. Williams Sr. and his lottery partnership, Sherwood reported. But council members said there were too many questions about the new deal and past business actions by Williams, including his nightclubs.

Related: Watch The Report

Gandhi said he will consider whether to resubmit the contract to the council or to reopen the bidding.

Sherwood reported that some complained that the new lottery contract deal included friends of Fenty's administration. Fenty insisted he had nothing to do with the lottery competition.

The city receives about $70 million a year from the lottery, but city officials said that should be $80 million to $90 million.

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