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Pennsylvania considers British company to run state lottery

November 28, 2012

HARRISBURG, PA — The administration of Governor Tom Corbett has been seeking companies interested in taking over the management of the state’s lottery, the proceeds of which are used to fund programs for the elderly.

A single company, Camelot Global Services PA LLC, which runs the national lottery in the United Kingdom, has applied to participate in a private management agreement (PMA), and if the deal goes through, Camelot will guarantee a minimum of $34 billion in profits for the state over the next 20 years. Part of the revenue would come from the establishment of 24-hour online keno games that would operate outside of casinos. The level of profit is about twice what the system is currently earning.

However, lottery sales have been steadily increasing, and some Democrats who oppose the deal question why Corbett would want to bring in a private company to manage a program that is considered a stable asset and is performing better each year.

About 230 employees now work for the lottery, and under the PMA, about 70 employees would remain on the payroll, and others would be able to interview with the new company.