PA Lottery May Become Privately Managed

Terms for a potential PA Lottery private management agreement are in the works, according to an e-mail from the governor's office

Editor's note: To read the terms of agreement and a document including a list of frequently asked questions about the agreement, click on the attached PDF files.

The Pennsylvania Department of Revenue will announce later today the terms for a potential private management agreement for the Pennsylvania Lottery -- a deal that reportedly would call for a $150 million upfront payment “to be provided by a private manager," according to an email sent by Gov. Tom Corbett’s office.

Canon-McMillan Patch has obtained a copy of the email in which Andrew J. Ritter Jr., the governor’s executive deputy secretary, said the commonwealth would retain ownership and control of the lottery. The commonwealth would continue to handle specific business responsibilities, while other responsibilities are to be transitioned to a private manager, according to the email.

The email does not spell out the specifics of that proposed division of responsibilities. The private manager would be selected through a bidding process, according to the email.

The email also indicates that the agreement would call for be a 20-year base contract, although performance-based extensions could increase its term to 30 years.

There would also be annual profit commitments for two decades to grow funding for lottery-related programs benefiting older Pennsylvanians, the email indicated.

A call to Department of Revenue's communications department was not immediately returned Friday afternoon.

RAGTIAG November 24, 2012 at 05:01 AM
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Robert Applegarth November 24, 2012 at 02:43 PM
Radtiag, what does your comment have to do with the lottery?
Otis T March 25, 2013 at 07:16 PM
Steven, 150 million upfront huh????? Well the lottery had a 961 million profit last year. PA is considered one of the top lotteries in the nation, so it doesn't make sense to give it away to a company that didn't even have to bid on it!!!! And when is Pa going to abide by what the voters want??? Polls show the voters are against it.......
Norristown Tall Cedars March 25, 2013 at 09:07 PM
Well back in November I asked if anyone remembered how Rendell wanted to privatise the turnpike. And some wanted to know what does this have to do with the lottery? Now we have Corbett wanting to privatise the lottery. Just follow the money.
Norristown Tall Cedars March 25, 2013 at 09:22 PM
Oh, in case anyone forgot, Rendell was going to outsource the turnpike to a Spanish company. And Corbett to outsource the lottery to an English company. Not that I have anything against the Spanish or English, I'd rather we keep things here in America.


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