Lawmakers consider lottery privatization
SUNBURY – The Senate Finance Committee will be holding a hearing on Governor Tom Corbett’s proposal to hire a private company to manage the $3.5-billion Pennsylvania Lottery. State Representative Fred Keller (R-85th, Kreamer) explained why Camelot Global Services is the only company being considered.
Keller said, “The governor, the administration, had put out a request for bids. At the onset, there were three companies that were qualified to bid. As they went through the process, two of the companies dropped out, leaving only one.”
Keller explained what Corbett’s intentions are for privatizing the lottery. He said, “In the lottery, it’s a private management agreement. So, it’s really not a sale. It’s just having somebody come in and run the business for Pennsylvania, basically guaranteeing a level of profitability for Pennsylvania.”
Keller added, “The logic is the Pennsylvania lottery hasn’t shown consistent growth. It’s been up and down and the growth over “X” number of years…and they are saying they made that a higher threshold for growth. Making the company guarantee that and actually making them guarantee it by putting $200-million worth of equity and assets and then say, if you don’t hit that, we will be able to go ahead and draw on that.”
Keller said they want to grow the lottery through expansion. Camelot Global Services runs the national lottery in the United Kingdom and is a consultant to the California lottery. Keller was a guest on WKOK’s Friday On The Mark program. You can hear more from him on this and other topics by listening to the program online at www.wkok.com. (Ali Stevens)