December 30, 2013

Corbett: PA Will Not Extend Lottery Privatization Agreement

Gov. Tom Corbett Monday announced the Commonwealth and Camelot Global LLC will not continue to pursue the Lottery Private Management Agreement, and his administration will continue to fight for the best interests of the Older Pennsylvanians by looking for other ways to grow revenue.
"We have decided not to extend Camelot’s bid for the Lottery Private Management Agreement first reached over a year ago ” Gov. Corbett said. “As we move forward, we will take what we’ve learned to make our successful lottery even better--expanding the player and retailer base, improving player loyalty, and implementing strategies that will grow our lottery, responsibly and efficiently.”
“I want to thank the teams for the hard work and effort,” Corbett said. “Our continued goal is to ensure a growing, predictable revenue stream for senior programs to meet the growing demand, and we will continue to work with all stakeholders and interested parties to explore new ways to harness market resources to enhance our Lottery’s continued success.”
In April 2012, the Commonwealth began the competitive procurement process to engage a private manager to run the Pennsylvania Lottery. Last November, it announced Camelot Global, LLC, a global leader in the lottery sector, as the selected vendor and awarded the contract. However, the process was later challenged by the Attorney General, prompting several extensions of the bid.
Pennsylvania initially pursued a contract for management services to assure a more predictable and growing revenue source for Older Pennsylvanians and to keep up with the anticipated demand for our growing senior population.
Through a competitive procurement, Pennsylvania awarded the management agreement, which would have assured at least $34.6 billion in profit – an increase of up to $5 billion - that could have been invested in senior programs throughout the life of the contract. This was significantly greater than this year’s profit growth of $6 million, and could have met growing demand for services for senior citizens.