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Outsourcing Pa. Lottery management bid deadline draws near

Pennsylvania LotteryPennsylvania Lottery: Outsourcing Pa. Lottery management bid deadline draws near
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Pennsylvania Gov. Tom Corbett once again finds himself days away from having to make a decision about what to do about his plan to privatizing the management of Pennsylvania Lottery.

The latest extension of a bid from United Kingdom-based Camelot Global Services, the only company to submit a bid to do this work, expires on Friday. It is the ninth extension to the bid's expiration date originally set to expire Dec. 31.

As of Wednesday morning, there was still no decision to accept it, reject it or seek a 10th extension, according to Elizabeth Brassell, a spokeswoman for the Department of Revenue, which oversees the lottery.

A Camelot spokeswoman said the company has no comment at this time.

In its bid, Camelot promised to generate $34.6 billion in profits over the next 20 years. The Corbett Administration has said that is $3 billion to $4.5 billion more than the lottery would produce by keeping its management in-house.

But state Attorney General Kathleen Kane raised constitutional and legal challenges to the administration's ability to proceed with outsourcing the lottery's management and rejected the contract. Since then, the administration has been working on trying to figure out how to address Kane's concerns to allow the outsourcing to proceed.

Opponents of the outsourcing have challenged the need to bring in an outside manager after seeing that the lottery last year broke sales and profit records that were set the year before. They also point out polls show voters consider this a low priority for state government.

Meanwhile, speculation is growing that Corbett may be developing a plan to abandon the privatization and proceed with trying to boost lottery profits by allowing the in-house lottery operation to add Keno to its portfolio.

Increasing profits as well as assurances of sustaining those higher profit levels was the appeal to Corbett for outsourcing the lottery's management. Camelot's plan, which included adding Keno, came with a $200 million security fund that the state could dip into if profits came in below the company-set profit targets.

Corbett saw that as a way to ensure funding would be there to continue providing lottery-funded services to the state's growing senior citizen population. Those services include prescription assistance, property tax/rent rebates, transportation services, funding for senior centers and nursing home care.

Administration officials adamantly deny that any decision about the lottery outsourcing has been made at this point, although they acknowledge discussions are ongoing.

Some of those talks took place at a private meeting last week that involved Corbett, some of his staff, a lottery representative as well as representatives from the lottery's contracted New York-based partner, Scientific Games International.

House and Senate Republican legislative leadership sources confirm that it is their understanding that the lottery privatization continues to be a topic of discussion and has not been ruled on or off the table.

But Senate Democratic Leader Jay Costa, D-Allegheny County, has heard the speculation that the administration is going to walk away from the outsourcing idea, something that his caucus has been advocating since Camelot's bid was originally received back in November.

"If it's true, we think it's an appropriate position," Costa said. "It's the right thing to do."

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11 comments. Last comment 3 years ago by jamella724.
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rdgrnr's avatar - walt
Way back up in them dadgum hills, son!
United States
Member #73904
April 28, 2009
14903 Posts
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Posted: August 28, 2013, 1:07 pm - IP Logged

They broke sales and profit records last year.

I don't understand why they'd want to farm it out.

Unless they just feel incompetent at the administration of it.

But that's typical of most all government agencies.

    RedStang's avatar - tallman zps6gf4inoc.jpg
    NY
    United States
    Member #121961
    January 21, 2012
    3159 Posts
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    Posted: August 28, 2013, 2:45 pm - IP Logged

    They broke sales and profit records last year.

    I don't understand why they'd want to farm it out.

    Unless they just feel incompetent at the administration of it.

    But that's typical of most all government agencies.

    I Agree! Why out source when everything is positive. Tom needs to take a ride to the UK and see what players think about Camelot.

      dpoly1's avatar - driver
      PA
      United States
      Member #66141
      October 16, 2008
      1679 Posts
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      Posted: August 28, 2013, 3:46 pm - IP Logged

       Attorney General Kathleen Kane thinks that SHE makes laws instead of enforcing them!

      dpoly1 - Playing the lottery to save the jobs of those that build, transport, sell & maintain luxury items! -

       

      Eschew Poverty ........... Vote Conservative!

        haymaker's avatar - Lottery-012.jpg
        Egg Harbor twp.south Jersey shore
        United States
        Member #112968
        June 29, 2011
        3857 Posts
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        Posted: August 28, 2013, 3:59 pm - IP Logged

         Attorney General Kathleen Kane thinks that SHE makes laws instead of enforcing them!

        Kane raised constitutional and legal challenges, sound like enforcement to me.

        Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

          dpoly1's avatar - driver
          PA
          United States
          Member #66141
          October 16, 2008
          1679 Posts
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          Posted: August 28, 2013, 4:47 pm - IP Logged

          Kane raised constitutional and legal challenges, sound like enforcement to me.

          There is more to her than this story!

          It IS the perview of the State Supreme Court to decide Constitutionality!

          dpoly1 - Playing the lottery to save the jobs of those that build, transport, sell & maintain luxury items! -

           

          Eschew Poverty ........... Vote Conservative!

            Jon D's avatar - calotterylogo
            Los Angeles, California
            United States
            Member #103813
            January 5, 2011
            1530 Posts
            Offline
            Posted: August 28, 2013, 8:49 pm - IP Logged

            Opponents of the outsourcing have challenged the need to bring in an outside manager after seeing that the lottery last year broke sales and profit records that were set the year before. They also point out polls show voters consider this a low priority for state government.

            Whenever govt tries to undertake a questionable project that doesn't make sense, follow the money. It should be scrutinized to look for kickbacks, especially if there is only a single bidder for the contract.

              rdgrnr's avatar - walt
              Way back up in them dadgum hills, son!
              United States
              Member #73904
              April 28, 2009
              14903 Posts
              Offline
              Posted: August 28, 2013, 9:29 pm - IP Logged

              Opponents of the outsourcing have challenged the need to bring in an outside manager after seeing that the lottery last year broke sales and profit records that were set the year before. They also point out polls show voters consider this a low priority for state government.

              Whenever govt tries to undertake a questionable project that doesn't make sense, follow the money. It should be scrutinized to look for kickbacks, especially if there is only a single bidder for the contract.

              "...follow the money."

              Bingo.

                Abdi's avatar - Lottery-008.jpg
                Nairobi
                Kenya
                Member #64806
                September 8, 2008
                161 Posts
                Offline
                Posted: August 29, 2013, 8:53 am - IP Logged

                I DON'T THINK THIS IS A GOOD IDEA they should have extended their deadline.

                I Agree!

                There are no born heroes or winners........it takes a hammer a chisel,a vision and a will to suffer the blows and be carved into one!..........

                  TheGameGrl's avatar - character catafly.jpg
                  A long and winding road
                  United States
                  Member #17084
                  June 10, 2005
                  4580 Posts
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                  Posted: September 1, 2013, 12:28 am - IP Logged

                  Ironic that we are a "Common" wealth (defined: a  : one founded on law and united by compact or tacit agreement of the people for the  common good) 

                  yet eagerly enjoying the opportunity to "sell" off-

                  For sale!  One lottery division, One Liquor Division , and Turnpike! 

                  I'm gonna wait though til they sell off the Department of Revenue and then go in for the deal! :)

                  Buy one get three free!

                  ~~Is it true, Is it kind,Is it necessary. ~~~

                  pa:888,4445,6132,4444,8008

                    Avatar

                    United States
                    Member #145267
                    August 1, 2013
                    1732 Posts
                    Online
                    Posted: September 2, 2013, 10:11 am - IP Logged

                    I"m surprised they are not outsourcing to China.

                      Avatar
                      Texas
                      United States
                      Member #132455
                      September 4, 2012
                      483 Posts
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                      Posted: September 19, 2013, 6:57 am - IP Logged

                      I hope they will be able to cover all the concerns with regards to outsourcing. They don't have to rush just because the deadline is near. They need to determince all the advantage and disadvantage of outsourcing so they will come up with a good decision.