Contract signed for Pa. Lottery privatization; still needs attorney general’s OK

A contract to hand over the operations of the Pennsylvania Lottery to a private British firm is now in the hands of the state attorney general.New Attorney General Kathleen Kane will have 30 days to review the 20-year deal signed by the Corbett administration.

Gov. Tom Corbett says he doesn’t expect the newly sworn in Democratic attorney general will hold up the deal in which the state will retain control of the lottery.

Concerns that the state will be forced to “buy back” the Pennsylvania Lottery from Camelot Global Services if the promised profits don’t materialize are wrong, according to state Revenue Secretary Dan Meuser.

“There are many means within the contract, many safeguards, to assure that we would simply transition back to how the lottery presently exists,” he said Thursday.

Camelot representatives have promised $34 billion in profits for the lottery over the 20-year life of the deal, an annual increase of 3 to 4 percent over current profits.

The guarantee is based on plans to expand lottery games to include keno terminals within the first year and online gaming after five years.

The state treasurer is among those that think such an expansion could be illegal unless it comes with the approval of the Legislature.

The union representing some lottery employees has sued the commonwealth over the deal.