Pa. Lottery has record profit, but privatization plan moves ahead

The Pennsylvania Lottery had record sales last fiscal year, but the Corbett administration still is moving forward with plans to privatize its operations.

 

The lottery yielded record-high net profits of more than $1 billion.

The figure actually represents modest growth of about 0.06 percent, according to Revenue Department Secretary Dan Meuser.

He says the big lure of privatization is that the contract would guarantee 9 percent revenue growth every year.

“Whether or not there was a recession, whether or not there were economic issues. That’s what the (private management agreement) would bring — a guaranteed level of funding levels,” Meuser said.

Meuser’s agency is still working on a plan to lease the lottery’s operations to the British firm Camelot Global Services.A bid with the company has been extended to the end of the month, after a previous deal was rejected by the state attorney general.

All profits from the Lottery go into programs benefiting seniors in the commonwealth — including a property tax and rent rebate program and prescription drug assistance.