State Attorney General Rejects Lottery Privatization Plan

February 14, 2013

Pennsylvania’s new Attorney General said Thursday she will not sign the Corbett administration’s contract that would turn over management of the Pennsylvania Lottery to a private firm.

Kathleen Kane declared the contract unlawful and unconstitutional.

A letter from Kane’s office to the state Department of Revenue on the same day in which she publicly unveiled her decision contended that the contract infringes on the state legislature’s constitutional authority, and that the development of electronic lottery games would violate the state Gaming Act.  Kane is a recently-elected Democrat, while Governor Tom Corbett, of course, is a Republican.

Camelot Global Services, the firm that manages the British national lottery, had guaranteed Pennsylvania some $34.6 billion in proceeds over 20 years, but there were questions about whether the administration could move on with Camelot’s reported plans to expand gambling by adding Keno and online games without the approval of the state legislature.  The union that represents state lottery workers had fought the privatization plan, saying as many as 170 people could lose their jobs.  Many Democratic lawmakers and state Treasurer Rob McCord had also expressed negative opinions.

The bid extended by Camelot was set to expire on Saturday.

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