UK Firm Only One to Expressinterest in State's Lottery
Boren, Jeremy, Tribune-Review/Pittsburgh Tribune-Review
A United Kingdom firm submitted the lone proposal to privatize operations of the Pennsylvania Lottery.
Camelot Global Services proposed a 20-year plan that offers yearly increases in the lottery system's net revenues and would add online lottery games and Keno to the repertoire of instant-winner games and daily drawings.
Gov. Tom Corbett has said the state should privatize lottery operations if it would lower costs and benefit taxpayers by increasing revenues flowing to social service programs that help senior citizens pay for transportation, housing and prescription drugs.
The lottery reported net revenue of $1.06 billion in the 2011-12 fiscal year. Camelot's bid estimates an average profit of nearly $1.23 billion in the first year, rising to nearly $1.8 billion by the 10th year.
The company's pay would be capped at 5 percent of profits after incentives are included, said Elizabeth Brassell, state Department of Revenue spokeswoman.
Officials will evaluate the proposal by the end of the year, Brassell said. About 230 employees work for the Pennsylvania Lottery. …