The Daily Item, Sunbury, PA

January 17, 2013

Governor approves state lottery deal; AG review is next


The Associated Press

HARRISBURG — Gov. Tom Corbett's administration has finalized a contract to hire British lottery operator Camelot Global Services to manage the Pennsylvania Lottery.

A spokesman for the state attorney general's office said the contract paperwork arrived Wednesday night. Attorney General Kathleen Kane's office has 30 days to review it for form and legality.

The Pennsylvania Lottery is one of the nation's largest. Pennsylvania in line to become the third state behind Illinois and Indiana to hire a private lottery manager.

Various other legal hurdles for the contract are waiting.

The 20-year contract can be extended to 30 years if Camelot reaches certain performance benchmarks. Camelot will charge a management fee worth hundreds of millions of dollars over the life of the deal and get cash incentives for exceeding its annual profit commitments.