State considers $34B bid to manage lottery
The state is considering a $34 billion bid that is valid until Dec. 31 for private management services for the Pennsylvania Lottery.
The commonwealth has been seeking to possibly enter a private management agreement for the lottery as a way to maximize results of the system, which funds programs that benefit a growing population of older Pennsylvanians.
Officials are considering the bid against the historic and projected performance data of the lottery to make sure a deal would provide “incremental profit growth” that is higher than what the lottery could do on its own, according to the release.
The bid is from Camelot Global Services PA LLC. It includes annual profit commitments starting with about $1.1 billion in the first year, with numbers growing to roughly $2 billion by a 20th year, according to a publicly available bid form.
The company is pledging to produce more than $34 billion in profits over 20 years, according to the Associated Press.
Last week, state Rep. Tony DeLuca, D-Allegheny County, announced that he planned to propose a bill in January to require legislative approval of such privatization moves, according to a release from his office.