The Corbett administration will not extend a British firm’s bid to privatize the $3.7 billion Pennsylvania Lottery.
Camelot Global Services’ bid to take over management of the lottery will expire Tuesday. State officials have extended the bid numerous times since the company’s deal with the commonwealth entered a limbolike state after being rejected by the state’s attorney general.
The state’s auditor General says fees paid to legal and financial consultants during over the lifetime of the bid have exceeded four-and-a-half million dollars, according to state Auditor General Eugene DePasquale.
But a spokesman for Gov. Tom Corbett said it’s not money down the drain.
“We view these as an investment and we will take what we’ve learned to grow our lottery for seniors,” said Jay Pagni.
No changes have been implemented as a result of the consultations, Pagni said, adding that the Corbett administration isn’t giving up on its push to grow the lottery’s revenues.
That could mean starting over on a privatization deal.
State lawmakers recently have started considering legislation to pave the way for a partial outsourcing of lottery management. Their tweaks to the deal may require a rebid.