British Company Expected To Manage PA Lottery

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The Pennsylvania Lottery is a step closer to becoming privatized.  The Department of Revenue announced Friday that they issued a notice of award to Camelot Global Services PA, LLC, which provides for a 20-year Private Management Agreement.  A notice of award is not a binding contract. Under Pennsylvania procurement laws, the issuance of the notice of award allows the Corbett administration the opportunity to disclose contractual and procurement details of the Private Management Agreement at the Senate Finance Committee Hearing scheduled for January 14th at the State Capitol.

With the issuance of this award, Secretary of Revenue Dan Meuser, Secretary of Aging Brian Duke and Pete Tartline, Executive Deputy Secretary, Governor’s Budget Office will address all relevant contractual procurement questions at the hearing.

Jay Pagni a Spokesperson for the Commonwealth says, “We were looking for a stable, long-term and meaningful revenue stream for senior programs. Over the next 30 years the senior population is expected to be about 25 percent of the general population. That’s a lot of strain and a lot of demand on services, and with that growing demand there is this need for us to ensure that we have money there. By stabilizing that revenue stream then you can say we want to do more rent rebates we want to make sure more people have access to low-cost prescriptions. We are not privatizing the lottery, we are engaging a private manager for the lottery, the commonwealth will still own the lottery and we do not need legislative approval to hire a private manager.”

Meanwhile AFSCME is suing to stop the contract. Kristie Wolf-Maloney, Director grievance and arbitration department  for Council 13 says they are disappointed. “Disappointed is an understatement. The commonwealth had ten days to review our offer under the counter proposal. We gave them a really extensive counter proposal and we fully expected them to review it, not three days later we get a response. Potentially we’re looking at 176 employees that we represent that could lose their jobs. There’s some talk that Camelot will keep some of the current employees but there’s no guarantee of  jobs for any of the employees and if they are hired at what kind of rates what kind of benefits what kind of pension certainly not the levels they have with the state right now.” She is also concerned about the money going to seniors. “We believe there’s going to be a 1.244 billion dollar loss to the senior programs.  Right now it’s 27 percent of the profits lottery generates go back to the senior program. It’s set to go up to 30 percent in 2015. Written right in the private management agreement is that the Commonwealth will seek to reduce that back down 27 percent that’s where we believe the Lost to the seniors is going to be.”


  • a m frey

    yes lets farm it out to another country, thats what we need more people on unemployment and money going out of country Thats the problem with this country farm our work and money and resourse to other countries instead of keeping it here .

    • R S Schreckengaust

      Ok Mr Corbette you might as well sell the Pennsylvania State Parks to China and The Pennsylvannia State Police to Germany and The Pennsylvania Turnpike to Mexico Where has MADE IN U S A gone? This thinking and practice is NOT good for Pennsylvania! This is not right! I will never buy another Pa Lottery Ticket

  • american vet

    more jobs sent overseas. why? what possible reason is there for this? Another wonderful politician screwing the working class. Wonder how much Corbett's kickback was for this?

    • vls

      When are people going to wake up? This is what all the republicans are doing. They are destroying the middle and low class and you still have the stupid morons voting them in office.Wake up people. The republican party is not what it use to be.

      • Mitch

        Of course the republican party is not what it used to be. The party has turned into democrats, while the democratic party has turned into socialists.

        As a nation, we are screwed. And it is no surprise that the state wants to farm out the management of the lottery somewhere, it is very nearly impossible to balance the books when one is paying outrageous wages for jobs that a trained monkey could do thanks to union thuggery.

        "Our people" are out of work all over the country, and for a few reasons…….
        1. Criminal tax codes causing companies to move oversea`s in order to survive.
        2. Ridiculous wage/benefit package demands by unions.
        3. Over the top DEP laws that cost companies millions just because an employee passes gas.

        We have made our own bed, now we must sleep in it. It costs the government a LOT of money to keep the lazy among us living in a lifestyle they desire, and the government chooses to screw those of us who create jobs instead of telling the lazy to sink or swim.

  • Angie

    Unbelievable!! Privatizing the lottery period is an idea that only a Jackass would agree to let alone having our lottery owned and operated by not another state……..oh no………another country!!!???? Corbett most definately must be getting a huge payoff for this! What basis is there that could warrant this insane decision?????? There is no ground to validate putting people — OUR PEOPLE — out of work. And what exactly does that mean for the seniors that benefit from the lottery? I know when this was being kicked around it was said the lottery would continue to run the same for 20 years and after that then all profits would be kept by the new. So what? In 20 years the seniors won't matter or need assistance?? WOW! This invokes some anger I have to admit. Who all gets to make this decision final? Corbett alone or does his team of overpaid lackies get to show their evil, uncaring, unconcerned selves as well? Why can't we ever get someone in office who gives a damn about the citizens who put them there?

  • DLC

    It will be interesting to see what the pay and benefits for the employees of Camelot doing the same job as the State employees do now are.
    I am sure that there will be no "NO SHOWS" and that the retirement age will be in line with what most private employees face.
    It will be a good job to have but you will have to produce, show up for work every day and save your own money for your retirement like "THE REST OF US"
    I am sure if you have been with the Lottery and actually worked at your job you will have an opportunity to keep your job. Every day someone loses their job through no fault of their own. Where is the hue and cry for someone who is not a Union member or Government employee.
    I do not know what the retirement age for Government employees or what they receive for say working 30 years is but I would be interested to find out. I know my husband worked at the same company for 31 years and they had a 401K account that he contributed to and some years they put money into it. Not all years just some. He retired on what he saved plus his 401 K and his SS that he paid into since he went to work at age 18. He retired at age 62.

  • lcf

    Corbett hands over the future of our seniors programs to a foreign company for an entire generation !!!!
    They are promising the world but will they deliver? Our 41 year old lottery is the 6th largest in the nation and one of the most efficiently run. Operating costs were 2.3% last year. Why fix something that is not broken?? Somebody is getting some huge payoffs here.
    The notice to award this deal & that some will lose their jobs was made know to Lottery employees late Friday afternoon after many were gone for the day. The last few months these same employees we told, numerous times , that they are the best producing lottery employees in the US.
    Nothing like getting a pat on the head before you are kicked off the porch.

  • wch

    Notifying employees friday afternoon at 4:30 that they lost their jobs was and is a cowardly act. Corbett did not tax the gas companies but wants to sell the state lottery system. Waited 3 years to prosecute sandusky and now wants to sue the NCAA. Eliminated low cost health insurance for working poor but wanted to implement a voter ID law. Did we error in electing Corbett? WHO IS CORBETT????????

    • DLC

      In the private sector you are called into an office, told you are being laid off, escorted to your desk so you can get your personal things and are shown the door.
      This is the real world.
      If operating costs were 2.3% last year I wonder if that included the fat pensions we will be responsible for ?
      Not only will we have to pay out huge pensions but I bet health care while we that worked in the dreaded private sector have to fend for ourselves.
      Now funny that no one has stated what the pension age and required years of service and pension amounts are for these workers!
      Let's see if anyone will come forward with these facts.

      • lcf

        Pension age is 65 or 35 years fo service, whichever is earlier. Employees contribute 6.25 percent of pay toward their benefit, however, they will accrue benefits at only 2.0 percent of their Final Average Salary for each year of service. Vesting is 10 years.

        • LPB

          This depends on what category you are in. If you are in law enforcement than it is age 50. If you were Act120 than it is age 60. The new plan for new employees is age 65. Vested after five or ten years depending when you were hired. That is 2% x class multiplier 2 years of service x final avg salary=annual benefit.

    • vls

      Well I didn't vote for him, Hopefully he will be voted out next year. He has done nothing for the middle class and low class people that is for sure. He is a typical republican. Just cares about the rich and getting his pockets lined. Vote him out!

    • LPB

      The Gas companies pay the same taxes as any other business in PA plus they pay an impact fee that no other company in Pa pays. Some spreading misinformation. He did not sell it but gave to someone else to manage. Are you talking about Adult Basic that had over a three year waiting list and the money came from the tobacco settlement when Ridge was in office. Where was Corbett to get the money? He has done everything he ran on. Budgets on time and no tax increases.

      • wch

        Talk about spreading misinformation. Corbett's decision to have the lowest natural gas drilling fees in the nation shows that he has no managerial skills. Because of his decision pa has lost 500 MILLON DOLLARS in fee income. You call that leadership. I call that stupidity. Eliminating Adult Basic shows that he has no compassion for the working poor. Yet, he spent 20 millon dollars on a failed voter id law. Furthermore, his educational funding decision has dumped on the pa homeowners. Our property taxes are increasing. Now he wants to outsouce the pa lottery to an english company. I wish we could outsouce Corbett. All of his decisions have had a negative impact on pa.

  • Robert

    Ask Chicago how selling off the parking meter concession is working for them. Parking rates are through the roof and the money Daley got in the deal is gone. If we don't do something the politicians will sell off national treasures next.

  • doug

    just something else to kill jobs in this state!! why don't any one that is worth anything run for office why does this state only elect worst losers they can find i have family that works for the pa lottery but no Corbette only cares about his self like he did with people on unemployment last year he don't care who has to feed a family or not he has a pay check! maybe we need to wake up and see we need real leadership not a bunch of idiots!

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