Bets Off! AG Shoots Down Lottery Management Deal

HARRISBURG PA – Gov. Tom Corbett’s attempt to outsource management of the Pennsylvania Lottery was rejected Thursday (Feb. 14, 2013) by state Attorney General Kathleen Kane as unconstitutional, The Pennsylvania Independent online news service reported.

Bets Off! AG Shoots Down Lottery Management Deal

Attorney General Kathleen Kane

Kane, during a five-minute news conference, said the governor’s contract with Camelot Global Services “contravenes the Pennsylvania Constitution and is not statutorily authorized.” Corbett’s administration entered the contract, a professional management agreement, with Camelot in January. The attorney general is required by state law to review contracts for “form and legality,” The Independent said.

Upon entering the Camelot agreement, state Revenue Department officials claimed it would bring in more money than the lottery makes as a state-run entity. Lottery profits fund programs for senior citizens, like prescription drug and at-home assistance costs. The rejection means that the state won’t see additional revenue from the state lottery that was projected.

Corbett said in a statement that he was “deeply disappointed.”

Budget officials earlier said the Camelot contract would bring an additional $50 million to senior citizen programs’ under the 2013-2014 budget proposed Feb. 5, according to The Independent.

Throughout the procurement process, however, lawmakers from both parties, unionized workers at the PA Lottery, and state Treasurer Rob McCord openly questioned if the contract was legal, if the process was fair, or if it overstepped the rights of lawmakers to authorize an expansion of gaming.

“I don’t agree with the attorney general’s analysis and decision, and we will review our legal options,” Corbett added.

Kane, who won office last November, is the first Democrat and first woman elected to the Attorney General seat.

Photo from The Independent

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