By Tribune-Review

Published: Friday, February 22, 2013, 1:00 p.m.
Updated: Friday, February 22, 2013

HARRISBURG — The state Department of Revenue reached agreement with a British-based firm to extend the company's lottery privatization bid until mid-March.

The extension announced Friday came a week after Attorney General Kathleen Kane, a Democrat, ruled the contract was illegal. Republican Gov. Tom Corbett continues to push for a way to execute the contract with Camelot Global Services PA.

The extension “allows both parties to continue considering strategic next steps in an effort to secure and maximize long-term lottery funding for seniors programs,” said revenue spokeswoman Elizabeth Brassell. Camelot guaranteed Pennsylvania $34 billion in profits over 20 years to manage the lottery, which would remain a state asset. The state and Camelot have extended the bid several times.

The attorney general by law reviews all state contracts for “form and legality.” One of the legal hurdles is whether allowing monitor-based games such as keno is an expansion gambling that requires legislative approval.

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