State outlines key terms for lottery management privatization

By - Last modified: November 12, 2012 at 9:34 AM

The state has released terms under which a private management agreement for the Pennsylvania Lottery could be reached as a way to “assure reliable and predictable future funding” for the commonwealth's growing senior population, according to the state Department of Revenue.

The Pennsylvania Lottery was created in 1971 and has contributed more than $22 billion for programs benefitting older Pennsylvanians since 1972, according to a Friday news release.

Among the terms is that the state would keep ownership and control of the lottery, including for all "significant business decisions," according to the department.

The state came to the terms after a due diligence period that included interacting with potential bidders and learning industry ideas for lottery profit growth, the release stated.

Some continue to question why such a move would be needed, including state House Democratic Leader Frank Dermody, who released a statement Friday.

A private management agreement could be executed in January, according to a timeline on the department's website.