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State, Camelot agree to extension through rest of 2013

Updated: Tuesday, October 29 2013, 06:30 PM CDT
Posted by: Lauren Gross

HARRISBURG -- After consultation with several legislative leaders, the Corbett Administration today announced the commonwealth and Camelot Global Services PA, LLC have mutually agreed to extend Camelot’s bid for the lottery private management agreement, originally set to expire Oct. 29, 2013, through the end of the calendar year. 

The extension will allow the commonwealth to pursue legislative efforts to address the continued need to grow reliable revenues for programs for older Pennsylvanians.

“Older Pennsylvanians deserve every effort of my administration and the legislature to make sure they have access to the programs upon which they rely,” Corbett said in a press release. “It is our responsibility to ensure that the Lottery is positioned to grow in order to meet growing needs.”

“There are significant reasons to explore ways to grow the lottery and stabilize the Lottery Fund,” said Sen. Dominic Pileggi, R-9. “It is our duty to make sure our mothers, fathers, neighbors, and friends have the services they need and that the commonwealth has the means to pay for them.”

The commonwealth will not incur any additional cost to taxpayers by extending the bid. The costs associated with advisors counseling the commonwealth on exploration of a Lottery private management agreement do not translate to lower funding for senior programs. 

Camelot’s priced bid proposes $34 billion and 20 years’ worth of Lottery profit growth, should a private management agreement for the Pennsylvania Lottery be executed. It is expected that that annual growth will generate $3 billion to $4.5 billion in new funding for senior programs over the 20-year contract term. 

In April 2012, the commonwealth began the competitive procurement process to engage a private manager to run the Pennsylvania Lottery. In November, it announced Camelot as the selected vendor. 

Auditor General Eugene DePasquale released the following statement on Corbett's decision to provide an 11th extension on the contract with British-owned Camelot Global Services Inc. to privatize the Pennsylvania Lottery management: “I disagree with the Corbett Administration’s decision to extend the Lottery privatization contract, but I respect the governor’s right to make that decision and proceed," he said.

“My office will carefully scrutinize the $3.4 million already spent on this effort. We will continue to review the entire Lottery privatization process in such a way as it may be helpful to the governor -- and therefore the people of Pennsylvania -- to make a final decision that is in the best interest of all taxpayers,” he added. 

State, Camelot agree to extension through rest of 2013

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