UK firm expresses interest in running Pa. lottery
By Jeremy Boren
Published: Wednesday, Nov. 21, 2012, 12:01 a.m.
A United Kingdom firm submitted the lone proposal to privatize operations of the Pennsylvania Lottery.
Camelot Global Services proposed a 20-year plan that offers yearly increases in the lottery system's net revenues and would add online lottery games and Keno to the repertoire of instant-winner games and daily drawings.
Gov. Tom Corbett has said the state should privatize lottery operations if it would lower costs and benefit taxpayers by increasing revenues flowing to social service programs that help senior citizens pay for transportation, housing and prescription drugs.
The lottery reported net revenue of $1.06 billion in the 2011-12 fiscal year. Camelot's bid estimates an average profit of nearly $1.23 billion in the first year, rising to nearly $1.8 billion by the 10th year.
The company's pay would be capped at 5 percent of profits after incentives are included, said Elizabeth Brassell, state Department of Revenue spokeswoman.
Officials will evaluate the proposal by the end of the year, Brassell said. About 230 employees work for the Pennsylvania Lottery. Should Camelot win the contract, the state would keep about 70 employees and the rest would be able to interview with Camelot, Brassell said.
Lottery sales increased last fiscal year by 8.5 percent, and opponents of privatization, including Democratic lawmakers and the labor union that represents lottery employees, question why Corbett would want to pay a private company when sales are already increasing steadily.
“There is no good reason to dismantle the lottery,” said Dave Fillman, the executive director of AFSCME Council 13, which represents the employees.
Because there are no bidders, the state will compare Camelot's bid to historic and projected lottery performance data and hire risk-mitigation firm Kroll Advisory Solutions to investigate Camelot's reputation and financial stability.
Two other companies dropped out of the secretive bidding process. Brassell declined to identify them.
The Associated Press contributed to this story. Jeremy Boren is a staff writer for Trib Total Media. He can be reached at 412-320-7935 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Steelers to release LaMarr Woodley
- Primanti’s manager admits stealing $30,000 from restaurants
- Fear of building collapse closes Tarentum road
- Kovacevic: Big Ben’s contract clock ticking
- Talented center Sutter is proving to be ‘pretty important’ for Penguins
- Ex-Sandusky lawyer investigated in divorce case
- DEP tests Loyalhanna after fuel spill
- Parking tickets in Downtown Pittsburgh spark outrage
- Analysis: Kesler still on Pens’ radar as Shero aims to bring back ‘Big 3’
- Penn State’s Franklin cherishes memories of time spent in Pittsburgh
- Park-and-ride lot to return on Route 286