Penn. Governor to resubmit Camelot lottery contract
Tom Corbett aiming to see privatisation deal approved after attorney general rejected initial contract.
Pennsylvania Governor Tom Corbett will revise and resubmit the state lottery privatisation contract it agreed with Camelot in the next few months following the attorney general’s rejection in February.
The state’s Department of Revenue is working on addressing the issues raised by Attorney General Kathleen Kane last month, when she stated Corbett overstepped his authority in approving the 20-year contract, that it was illegal and failed to meet state constitution requirements to secure approval from the legislature and Pennsylvania Gaming Control Board.
The revisions will aim to rectify these concerns as well as Kane’s claim that Camelot would under the current terms of the contract be able to claim unconstitutional indirect expenses against paying certain damages or claims.
Corbett told local newspaper Patriot News: “We believe that predictable and growing funding for senior programs is a vital concern for all Pennsylvanians, and we will work to provide more clarity to the attorney general in order to assist her review of the revised contract.”
Camelot said in a statement: “We can confirm that we are in discussions with the Commonwealth on potential revisions to the agreement.”
The original deal, publically backed by Corbett, required Camelot Global Services to generate US$34.6bn over the course of the contract.
In January, GTECH claimed it dropped out of the process to manage the lottery in November last year were revealed because of the state’s request for online revenue forecasts within the tender document. A third bidder, Tatts Group, withdrew from the process in August.
Online gambling has not yet been legalised in Pennsylvania, although Representative Tina Davis is expected to introduce legislation this week allowing the state’s casinos to offer online poker, slots and table games for a $10m licence fee.