Friday 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 stateâ€™s constitution.
Following Kaneâ€™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: â€œAs 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.â€ Although Corbett has ended the bid, he remains on good terms with Camelot and Alex Kovach, Camelotâ€™s Managing Director, said the firm is open to future opportunities with the PA Lottery.
Democrats were happy with Corbettâ€™s decision but have said that the bid was â€œwasteful, secretive and ill-conceived.â€ 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 hasnâ€™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
Updated January 3rd, 2014