PA could end proposed lottery deal by paying termination fee

Written by The Associated Press | Dec 17, 2012 1:44 PM
Pennsylvania Lottery logo

(Harrisburg) -- The 20- to 30-year contract that Governor Corbett is currently considering with a private company to manage the Pennsylvania Lottery could be terminated for no reason.

The length of the potential contract with Britain-based Camelot Global Services is unusual, especially since Pennsylvania courts frown on a governmental body tying a future administration to a contract.

Under the proposed contract, the state could end the deal for no reason after three years, plus six months for Camelot to finish up.

One catch is the termination fee, which could be substantial. That amounts to the remaining value of Camelot's investment in things like equipment, technology and personnel, plus 10 percent.

The state may also terminate it if Camelot consistently fails to meet its annual profit commitments, among other reasons.

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