22
Jan 14

New York Lottery Seeks Advice from Camelot

new-yorkWednesday January 22 2014New York lottery officials have recruited Camelot, who manage the National Lottery in the UK, to draw up a five-year plan to help revive the New York Lottery.

The New York State Gaming Commission has asked Camelot to carry out market research on new state lottery games amid fears that they may lose revenue as a result of the relaxation of casino gambling regulations in New York. The five-year plan will consider the idea of online ticket sales as one way to reverse falling sales of lottery tickets and increasing competition from casinos.

Speaking about seeking advice from Camelot, Gardner Gurney from the New York Gaming Commission said: “The gambling landscape in New York State has changed over the past 12 months, and will continue to change and become more competitive.” With the worry that the figure transferred to education could drop, Gurney went on to say that “in order to safeguard state aid to education it is highly critical that we look at alternative approaches for the future of the lottery.”

The education system in New York takes a proportion of the revenue generated from lottery games and transferred $2.2 billion to education during the 2012-2013 financial year.

Camelot, owned by the Ontario Teachers’ Pension Plan, has previously consulted with lottery officials in California, Massachusetts and Canada resulting in a Canadian multi-province game similar to EuroMillions. The operator was also instrumental in helping the Californian lottery turn around poor performing lottery games.

Consulting with New York Lottery is good news for Camelot after Pennsylvania lottery officials decided against the UK lottery operator managing its state lottery games despite several months of negotiation.

For the latest winning numbers from New York lottery games, visit Lottery.net.

by Patrick Fitzgerald
Updated April 5th, 2016

03
Jan 14

Pennsylvania Lottery Will Not Be Privatized

pennsylvania-lotteryFriday December 2 2013 – After a year of attempting to privatize the Pennsylvania Lottery, Governor Tom Corbett said on Monday that he is ending his pursuit of hiring Camelot to run the PA Lottery. Corbett had been consulting for months on privatization options, but legal challenges and opposition from various groups have made finalizing an agreement difficult.

Both Democratic and Republican lawmakers announced their opposition to the proposed bill in 2013 and Attorney State General Kathleen Kane was the first to voice her concerns. Kane rejected the original contract in February 2013 ruling that the lottery deal violated the state’s constitution.

Following Kane’s concerns, others voiced their objections to the privatization with the American Federation of State, County and Municipal Employees Council 13 (AFSCME) claiming that hiring a private company to run the state lottery would result in job losses.

In the statement released by Corbett earlier this week, he said: “As we move forward, we will take what we’ve learned to make our successful lottery even better. We plan to expand the player and retailer base, improve player loyalty and implement strategies that will grow our lottery, responsibly and efficiently.” Although Corbett has ended the bid, he remains on good terms with Camelot and Alex Kovach, Camelot’s Managing Director, said the firm is open to future opportunities with the PA Lottery.

Democrats were happy with Corbett’s decision but have said that the bid was “wasteful, secretive and ill-conceived.” The cost for the bid was originally anticipated to be $375,000, but with numerous extensions and the additional cost of hiring extra financial and legal advisors, the cost reached nearly $5 million.

Despite making the decision to end the bid now, Corbett hasn’t ruled out another attempt to privatize the lottery in the future. Currently Indiana, Illinois and New Jersey are the only states that have hired private firms to manage their state lotteries.

You can read more about the history of the proposal here.

by Patrick Fitzgerald
Updated January 3rd, 2014

31
Oct 13

Pennsylvania Lottery Privatization Pursuit Rumbles On

Thursday October 31 2013 – Governor Corbett has extended the deadline for Camelot to take over the management of the Pennsylvania State Lottery until the end of the year, despite criticism from lawmakers over the spiralling costs. The bid is now due to expire on December 31.

Governor Corbett (picture from Twitter.com)

Governor Corbett (picture from Twitter.com)

Originally, the estimated price tag for outsourcing the management of the lottery was capped at $375,000 when legal advisors DLA Piper first took on the work in March 2012. However, since then revisions to the contract, extensions to the bid and the hiring of extra financial and legal advisors have seen the costs spiral out of control to reach nearly $5 million.

Despite these costs, supporters of the bill are still confident that the return on investment will be worthwhile, given that Camelot has pledged to boost lottery profits by $34 billion during their proposed 20 year contract.

However, more and more Democratic and Republican lawmakers are announcing their opposition to the proposed bill. Back in February 2013, Attorney State General Kathleen Kane was the first to voice her concerns, rejecting the contract as “illegal” as it violated the state of Pennsylvania’s constitution.

Since then, the ever-increasing costs of the deal have led to others voicing their concerns, especially as these costs are coming directly out of lottery profits which are used to fund projects for the state’s growing senior citizen population.

In a press conference on Monday, State Treasurer Rob McCord called for the Governor to put an end to the bid which he referred to as “a failed and costly experiment”. He noted that the funds paid to DLA Piper alone had so far reached $3.4 million – an amount which would be higher than the tallest skyscraper in Pennsylvania if stacked up in $1 bills.

“This is real money that should have been used to help our senior citizens,” McCord went on to say. “Instead, it has lined the pockets of consultants who are pursuing an ill-advised plan to privatize our efficient and well-administered lottery.”

Judging by last year’s record-breaking lottery sales, which hit $3.69 billion and produced $1 billion in profit, McCord may have a point. At this time however, Governor Corbett continues to hedge his bets with the most recent extension and more news is now expected at the end of December.

You can read more about the history of the bid here.

In Other Pennsylvania Lottery News

The Pennsylvania Lottery has launched a range of six seasonal scratch offs to celebrate Christmas. Players can choose between Snow Days, Cashing Thru The Snow, Merry Multiplier, Holiday Gifts, Sleigh Ride or Merry Millionaire.

The scratch offs are priced between $1 and $20 and offer players the chance to win up to $1 million. For more information, visit the Instant Games area on the Pennsylvania Lottery website.

by Sadie Walton
Updated July 4th, 2018

31
Aug 13

Camelot Bid for PA Lottery Extended For Tenth Time

Saturday August 31 2013Governor Tim Corbett has reached an agreement with UK based Camelot Global Services for a tenth extension in their bid to run the Pennsylvania Lottery. This follows months of debate within the state administration regarding how to proceed with the management of the lottery, including whether or not to reject the bid and keep the lottery state-run. This new extension will run until October 29.

Camelot, who is the sole private lottery manager bidder for the contract, first expressed their interest in taking over the Penn State Lottery back in November 2012 and were granted a Notice of Award in January 2013 after pledging to generate over $34.6 billion in profits for the state over the next 20 years. According to Governor Corbett, this figure is $3 – $4.5 billion more than the state run lottery currently produces.

Some of Camelot’s plans for expansion include selling lottery tickets online and introducing a new Keno game. Governor Corbett voted in favour of the privatisation bid, stating that the increased revenue it would bring in would be a way for the state to continue to serve the growing elderly population who are the recipients of the lottery profits.

Attorney General Kathleen Kane had an opposing view. She disagreed with the privatisation bid and announced she was unhappy signing the contract over to a British firm. State Treasurer Rob McCord and other Democrats agreed with her opposition and also cited their concern over the 200 plus state lottery workers who would lose their jobs.

Governor Corbett was hoping PA would follow in the footsteps of the Illinois and Indiana Lotteries who have signed contracts with private lottery managers. However, after the tenth extension was agreed just this week, reaching a privatisation agreement just seems to be getting further and further away for Camelot and Governor Corbett.

Speculation is also continuing to mount that Governor Corbett may be ready to turn his back on the bid and proceed with trying to bolster state lottery profits by continuing to run it in house. However, part of the privatisation appeal to Governor Corbett was the $200 million security fund pledged to the state by Camelot should the lottery profits fall below their projections.

With disagreements and bickering over the bid still occupying administration and local media, the only current certainly is that this discussion is far from over. Lottery World will bring you the latest news on this story as and when it breaks.

In Other Lottery News

Tonight’s Powerball jackpot is an estimated $142 million after rolling over for the sixth time in a row. State lottery jackpots are also looking healthy, with the Ohio Lottery jackpot topping $44.8 million and the New York Lotto reaching $6.6 million.

You can keep up with the latest results for all US lotteries by visiting Lottery.net.

by Sadie Walton
Updated March 1st, 2017

02
Aug 13

Deal for Camelot to Run the Pennsylvania Lottery Still Alive

Friday August 2nd, 2013 – Back in January 2013 LotteryWorld reported that “Camelot were one step closer to signing 20 year contract to run the Pennsylvania Lottery” but since then Camelot’s bid to run the state lottery has been disallowed, with the state Attorney General, Kathleen Kane, rejecting the original contract in February 2013 ruling that the lottery deal violated the state constitution.

Since then the Gov. Tom Corbett’s administration has sought a number of extensions and on Tuesday July 30, 2013 another extension was granted which gives Corbett a month to decide how to revise Camelot’s contract.

In Camelot’s original contract, the firm, who currently run the National Lottery in the UK, guaranteed to make profits of $34 billion over the duration of the 20 year contract and said they would make annual guaranteed payments to the state, and in circumstances were profits fell short, they would reimburse the difference up to 5%.

The Corbett administration says the current state-run system offers no similar guarantees, with the Department of Revenue estimating that the lottery would generate $30 billion over the same 20 years if it were to remain state-run. However, Kane said lawyers on her staff had determined “the contract with Camelot usurped the authority of the legislature to regulate and manage the Pennsylvania Lottery,” according to Philly.com

In June 2013, the Pennsylvania Lottery released its annual report from 2012 – 2013 that showed sales of $3.48 billion, a growth of 6.3%, in which they gave over $1 million in profits to the various state programs that help older Pennsylvanians, which is below the profit mark that Camelot have said they would deliver.

Administration officials wanted to hire an external company to manage the Pennsylvania Lottery because they were worried that the current state-run lottery system might not be able to carry on providing enough funding for the various programs that support the elderly residents in the state, as the growth of the state’s elderly population rises. At present, Pennsylvania has almost 2.3 million residents over the age of 60 with the state predicting that nearly a quarter of the population will be over 60 by 2030.

Corbett has until August 31st, 2013 to rework a proposed contract or seek another extension to keep Camelot’s bid valid.

by Patrick Fitzgerald
Updated August 3rd, 2017