State House Sound Bites

Capitol reporter Katie Meyer covers Pennsylvania politics and issues at the Pennsylvania state capitol.
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Governor: British bid on PA Lottery will expire

Written by Mary Wilson, Former Capitol Bureau Chief | Dec 30, 2013 12:56 PM

The Corbett administration is not renewing a British company's bid on a deal to privatize portions of the $3.7 billion Pennsylvania Lottery.

The bid, set to expire December 31, is long past its prime. It was extended repeatedly as the commonwealth negotiated with Camelot Global Services, and after the resulting deal entered a limbo-like state once it was rejected in February 2013 by Attorney General Kathleen Kane.

The auditor general says fees paid to legal and financial consultants during over the lifetime of the bid have exceeded $4.5 million.

"We view these as an investment and we will take what we've learned to grow our lottery for seniors," said Jay Pagni, a spokesman for the governor. He said no changes have been implemented as a result of the consultations, but adds the administration isn't giving up on its push to grow the lottery's revenues.

"This is not by any means the end of the governor's initiative to drive these efficiencies," Pagni said. "We will continue to look at ways to do that." The lottery funds several programs benefiting older Pennsylvanians.

The governor's team has indicated it may need to start over on a privatization deal. State lawmakers have recently begun considering legislation to pave the way for a partial outsourcing of lottery management. Their tweaks to the deal may require a rebid.

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