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Lottery privatization earns its third public meeting - abc27 WHTM

Lottery privatization earns its third public meeting

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HARRISBURG, Pa. (WHTM) -

Last week the Governor signed off on legislation that will make Pennsylvania the third state to have a privatized lottery system. On Wednesday legislators argued over the details during the third public meeting since the bid was introduced.

Camelot Global Services is the name of the company set to take over. Currently they provide consulting services to the state lottery of California, which, according to their website is the fastest growing in the US.

The UK company has experience, big ideas, and bigger promises like social responsibility, targeting a wider lotto audience, and bringing in $34.6 billion dollars for seniors over the next 20 years.

"I don't know if they can generate the kind of sales they think they can generate," said Rep. Tim Hennessey, Chairman of the House Aging and Older Adult Services Committee.   

Similar skepticism on the move to private management was on display during Wednesday afternoon's hearing at the capitol.  

The Corbett administration says they are confident that in Camelot's hands the lottery will generate $1.3 billion more over the next 10 years than if it were managed on the home front.

"They put their own money to back it up," said Hennessey. "If they don't make it then they lose their own money, so our seniors should be guaranteed."

The contract and Camelot's profit projections are backed up by a $200-million dollar security fund.
 
Still for some, handing Pennsylvania dollars over to members of King Arthur's Castle is a bit unsettling.  

The lottery deal takes effect six months after the attorney general authorizes it.

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