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Pennsylvania will not privatize lottery

Pennsylvania LotteryPennsylvania Lottery: Pennsylvania will not privatize lottery
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Pennsylvania is scrapping a deal with a U.K.-based company to privatize management of the state's lottery system, Governor Tom Corbett said on Monday.

The state struck a deal more than a year ago with Camelot Global Services LLC, a subsidiary of Britain's national lottery operator, Camelot Group PLC, to guarantee $34.6 billion in payments to the state over 20 years to manage the Pennsylvania lottery.

But Corbett's administration repeatedly had to extend the contract after Pennsylvania Attorney General Kathleen Kane, who reviews state contracts, rejected it in February. Kane, a Democrat seen as a potential rival to Corbett for re-election next year, said the first-term governor had overstepped his authority and contravened the state constitution in signing the deal.

The latest extension is set to run out on Tuesday and will not be renewed, Corbett's office said. Lottery operations will continue to be managed by the state.

"As we move forward, we will take what we've learned to make our successful lottery even better: expanding the player and retailer base, improving player loyalty, and implementing strategies that will grow our lottery, responsibly and efficiently," Corbett said in a statement.

Corbett spokesman Jay Pagni said that privatization was still an option but that there were no other bidders or specific plans.

"The need still exists to grow the lottery to provide a predictable and reliable revenue stream for those that benefit from it," Pagni said.

Pennsylvania's is the only U.S. state lottery that dedicates all of its proceeds to programs that benefit senior citizens — including property tax and rent rebates, reduced transportation costs and low-cost prescription drug programs.

"We remain on good terms with the Commonwealth of Pennsylvania and are open to future possibilities," Camelot Global Managing Director Alex Kovach said in a statement.

Both Pagni and Camelot cited changes in Pennsylvania's political landscape and competitive environment since the deal was struck in November 2012. Lottery employees also sued to stop the privatization.

Corbett has struggled to enact some of his largest agenda initiatives, including the lottery deal. His proposals to reform the public pension system and privatize state-owned and operated liquor sales have stalled in a legislature controlled by his own Republican party.

He is considered among the most vulnerable U.S. governors seeking re-election in 2014. A Quinnipiac University poll this month found that his approval rating had fallen to 36 percent — his lowest since being elected in 2010 — with 53 of registered voters disapproving of his job performance.

Corbett's push to privatize the lottery is "by far" the least popular of his main initiatives, and the administration could not gather enough public or legislative support for it, said G. Terry Madonna, public affairs professor at Franklin & Marshall College and director of its polling unit.

That could actually work in Corbett's favor in his tough re-election bid.

"People don't favor it. If you don't do it, it doesn't create any harm," Madonna said.

Meanwhile, Kane, who is both the first woman and first Democrat to be elected Pennsylvania's attorney general, received more votes than any other statewide candidate in 2012, outpolling even President Obama. She pledged to serve a full four years as attorney general and has downplayed local speculation that she would consider a run for governor as early as next year.

Morning Call

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10 comments. Last comment 3 months ago by DEE88.
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dr65's avatar - black panther.jpg
Pennsylvania
United States
Member #74096
May 2, 2009
15816 Posts
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Posted: December 31, 2013, 9:13 am - IP Logged

It is nice to know some kept the push going to keep our lottery where it belongs. Corbett needs to be run out, he's got

other things up his sleeve too. This is good news knowing that a UK company will have no say in the way our lottery

operates.

There is no need to improve player loyalty..killing that concept was as easy as handing control over to Camelot.

Corbett said:

"As we move forward, we will take what we've learned to make our successful lottery even better: expanding the player and retailer base, improving player loyalty, and implementing strategies that will grow our lottery, responsibly and efficiently," Corbett said in a statement.

I wish he had that attitude from the start.

1444 6341 6901

    Jon D's avatar - calotterylogo
    Los Angeles, California
    United States
    Member #103816
    January 5, 2011
    1434 Posts
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    Posted: December 31, 2013, 9:39 am - IP Logged

    I just find it so strange how these government people talk about the lottery.

    They think its a regular business, and they need to increase revenue and market share year after year, yada yada. Uuhhhh...hello...you have a captive market! The lottery is a state sanctioned monopoly non-profit gambling operation in the area of lottery gaming. Nobody else can offer lottery gaming.

    So they want to insert a profit making private company on top of the limited non-profit public benefit fundraising purpose of the lottery? Hmmm... don't make sense to me. If you wanna open up gambling and player base, do it for REAL gambling like casinos where different companies can compete for players. Not with the horrible payouts the lottery enjoys because of the built-in heavy tax burden for public fundraising.

      DEE88's avatar - animal doggy2.jpg
      PA
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      Member #69849
      January 18, 2009
      9138 Posts
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      Posted: December 31, 2013, 10:24 am - IP Logged

      It is nice to know some kept the push going to keep our lottery where it belongs. Corbett needs to be run out, he's got

      other things up his sleeve too. This is good news knowing that a UK company will have no say in the way our lottery

      operates.

      There is no need to improve player loyalty..killing that concept was as easy as handing control over to Camelot.

      Corbett said:

      "As we move forward, we will take what we've learned to make our successful lottery even better: expanding the player and retailer base, improving player loyalty, and implementing strategies that will grow our lottery, responsibly and efficiently," Corbett said in a statement.

      I wish he had that attitude from the start.

           I agree  with you dr65...Corbett needs to be run out...and they had this article in my newspaper this morning but they didn't mention in this article that Corbett is thinking about bringing Keno and expanding  other online access to lottery gambling..to boost sales and revenue....

        mrcraft's avatar - images3lp4 zps7dbb4a10.jpg
        Los Angeles, California
        United States
        Member #149499
        December 2, 2013
        308 Posts
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        Posted: December 31, 2013, 11:40 am - IP Logged

             I agree  with you dr65...Corbett needs to be run out...and they had this article in my newspaper this morning but they didn't mention in this article that Corbett is thinking about bringing Keno and expanding  other online access to lottery gambling..to boost sales and revenue....

        I may have seen a foreshadowing of online access to lottery gambling in Pennsylvania.  Yesterday, I was checking out PA Scratchers on their website, and for the new scratchers that came out has an interactive component where you scratch the lottery tickets with your mouse like you do with a coin.  It was for entertainment purposes but found it interesting nonetheless.

          RedStang's avatar - mustangstu zps4c591ef5.jpg
          Dutchess , NY
          United States
          Member #121966
          January 21, 2012
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          Posted: December 31, 2013, 12:51 pm - IP Logged

          Must of been a hard decision. I wonder if they flipped a coin or shook a magic 8 ball.

            TheGameGrl's avatar - p42a
            Pennsylvania
            United States
            Member #17084
            June 10, 2005
            3100 Posts
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            Posted: December 31, 2013, 11:41 pm - IP Logged

            Heres the truth behind this entire transaction (deal).By creating a private venture, the state can then change some rules, the biggest one being... State tax the winnings. We are currently one of the few states with exempt status. Yup a whopping deal of 36 billion to the commonwealth along with 6 percent or more from the players on winning claims. It would have been a backdoor way to pull a fast one on the players. It will happen , they will just find another way to cut a deal in the future deals. And to correct the article not all proceeds go to senior programs... The state report shows less then 60 percent goes to senior benefits programs directly, the rest is operations ,marketing, and contracts.

            ________________________________

            Signature quote-If I'd agree with you , we'd both be wrong.

              Avatar

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              Member #78052
              August 6, 2009
              692 Posts
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              Posted: January 3, 2014, 12:17 pm - IP Logged

              Was too busy celebrating the New Year to comment earlier.   Oh!   Happy New Year Lottery Post! 

               

              Make Noise!!   I always do when I don't like something that "They" do to us humans.   

               

              DO NOT LET YOUR GUARD DOWN!   The Idiot is still in office. 

              I think that if the Attorney General Kane of Pa runs for the office I'll vote for her, she is a fine example of someone that is elected to office that represents the people that voted for her and not the dead presidents that others worships.   And Kane has Corbin's number, he can't pull the crap he wants with her as a watch dog.  Thank You AG Kane!   You saved us from fraud!   She also stopped him in his tracks with other dumb crap he wanted to pull on us.   We have a winner at last!

              Kane told Corbin in his last round that it would take too many changes in the laws by the House for him to go forward.   So now your grandparents can relax that the Meals on Wheels will continue, along with the other services and benefits that the lottery was set up to fund. 

              WE WON! 

              Now I can change my byline that I have had for two years???   Yahoo!!

              Life Is Wonderful If You Don't Weaken

                RankineerSue's avatar - DiscoBallGlowing
                New Member
                Pittsburgh, Pa
                United States
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                January 4, 2014
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                Posted: January 4, 2014, 11:47 pm - IP Logged

                I bet Corbett was going to get a kickback or have his pockets lined. Reeks of corruption....selling a profitable lottery operation to a foreign country! So glad it did not happen.

                  luckyshoes's avatar - scene sunovermountains.jpg
                  Where To Next
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                  September 2, 2009
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                  Posted: January 8, 2014, 12:21 am - IP Logged

                  I knew I liked Kane. Yes Nod

                  Children who are born into happy families grow up speaking love as their native language.

                    DEE88's avatar - animal doggy2.jpg
                    PA
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                    January 18, 2009
                    9138 Posts
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                    Posted: January 8, 2014, 1:29 pm - IP Logged

                    Was too busy celebrating the New Year to comment earlier.   Oh!   Happy New Year Lottery Post! 

                     

                    Make Noise!!   I always do when I don't like something that "They" do to us humans.   

                     

                    DO NOT LET YOUR GUARD DOWN!   The Idiot is still in office. 

                    I think that if the Attorney General Kane of Pa runs for the office I'll vote for her, she is a fine example of someone that is elected to office that represents the people that voted for her and not the dead presidents that others worships.   And Kane has Corbin's number, he can't pull the crap he wants with her as a watch dog.  Thank You AG Kane!   You saved us from fraud!   She also stopped him in his tracks with other dumb crap he wanted to pull on us.   We have a winner at last!

                    Kane told Corbin in his last round that it would take too many changes in the laws by the House for him to go forward.   So now your grandparents can relax that the Meals on Wheels will continue, along with the other services and benefits that the lottery was set up to fund. 

                    WE WON! 

                    Now I can change my byline that I have had for two years???   Yahoo!!

                        Well from what I have been reading about Kane....Corbett doesn't stand a chance to win ....the people are already talking that they will vote for her....so CORBETT...give it up...your not going to win ......