Pennsylvania scraps Camelot lottery privatisation contract
Long-running saga comes to an end as time for Governor to resubmit contract terms is allowed to expire
UK lottery operator Camelot Global Services’ hopes of securing Pennsylvania’s lottery privatisation contract were dashed this week after the latest extension for the deal to be revised expired.
Camelot was initially awarded the 20-year contract in late 2012, under which it promised to deliver at least $34.6bn in profit over the course of the contract.
However Pennsylvania attorney general Kathleen Kane later rejected the deal, claiming Governor Tom Corbett had overstepped his authority and contravened the state constitution by signing the contract as it had not yet gained legislative approval.
The Republican agreed to revise and resubmit the contract following Kane’s rejection, however the latest extension to do so was allowed to expire on Tuesday by mutual consent (31 December).
“It is our duty to defend and protect the constitution of the commonwealth and that is what our office has done by declining this contract,” Kane said at the time.
Kane also criticised Corbett for adding pressure on her to sign the deal by claiming the privatisation will generate an additional $50m in the state’s upcoming budget to put towards supporting older residents.
Corbett said the state would continue to run the lottery for the foreseeable future.
“As we move forward, we will take what we’ve learned to make our successful lottery even better – expanding the player and retailer base, improving player loyalty, and implementing strategies that will grow our lottery, responsibly and efficiently,” he said in a statement.
Meanwhile Camelot continues to work with other US states including New York where it is assisting the Lottery Commission with a business plan to compete with the seven casinos planned for the state.