Even if Pa. Lottery deal fizzles, consultants in line for $1.2 million

A deal to privatize the Pennsylvania Lottery may have hit a snag, but contracts with the two private firms advising the commonwealth on the plan means the state definitely has some bills to pay.

The state could be on the hook for as much as $1.2 million for work by its consultants on a deal to turn over the operations of the lottery to British firm Camelot Global Services.

Attorney General Kathleen Kane rejected the contract, but if the deal had gone through, payment to the two advisers could have been much higher — the total pay was capped at $30 million.

Department of Revenue Secretary Dan Meuser, who oversees the lottery, says final payment for the two firms is still being determined.

“We’ve got to pay them for their work. I mean, we’re not paying Camelot anything,” he said Tuesday. “We hired them to put something together and it’s in a stall.”

The firms probably won’t be paid until after the Corbett administration decides if it will appeal the decision to turn down the lottery deal.

Baltimore legal firm, DLA Piper, could receive as much as $375,000 for its work, while Chicago-based financial adviser Greenhill and Company would be paid at least $850,000.

The payment will come out of the state’s lottery fund.