Privatization Bid Canceled for PA Lottery

After being plagued with problematic negotiations and legal obstacles, Governor Corbett announced that he would not be extending a bid by United Kingdom-based Camelot Global Services to run Pennsylvania’s lottery system.  As you may recall, the single-bidder contract received eight extensions during the past year.

Throughout 2013, the state spent nearly $4.6 million on lawyers and consultants related to the proposed private management deal and I’m happy to see that Pennsylvania can now move on and continue to look for ways to maximize revenues for senior programs instead of outsourcing jobs to a foreign firm, especially for a system that has already proven to be efficient. In fact, our Lottery system has established itself as a model for others throughout the nation.  

The Pennsylvania Lottery began in 1972 and has become the most successful lottery operation in the country.  More recently, the Lottery posts profits of about $1 billion a year and in fact generated nearly $3.7 billion in the last fiscal year.  Over the past four decades, the Commonwealth’s Lottery has funneled $23.7 billion into programs for senior citizens and the elderly like the property tax and rent rebate program, transit services, senior centers and prescription drug programs.  I am proud of the operations of the state’s Lottery and will continue to support initiatives of this major Commonwealth asset.