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State, lottery privatization bidder agree to deadline extension

By - Last modified: January 2, 2013 at 11:42 AM

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State officials and the company that wants to manage the Pennsylvania Lottery have agreed to extend the firm's bid until Jan. 10, according to the Pennsylvania Department of Revenue.

The proposal offering about $34 billion in profit commitments over 20 years from Camelot Global Services PA LLC had been set to expire Dec. 31, and it could be extended again, according to the revenue department.

Camelot's bid was announced in the fall after several months of the state considering the idea of entering into a management agreement with a private firm as a way to boost lottery profits.

The lottery is used to fund programs for Pennsylvania's growing ranks of seniors.

But the administration came under fire in the days and weeks since Camelot's bid was announced for an alleged lack of transparency in the process.

The extension of the bid allows time for the union representing lottery employees to make a counterproposal by Tuesday and gives more time for a risk mitigation firm to complete its final report to the commonwealth, according to a news release.

The state said in November that it was engaging with the lottery employee union "consistent with the union contract" and that the commonwealth would consider an alternative plan from it before making a final decision.

When officials get and consider a counterproposal and the report, and if private management is viewed as the best path forward, a second bid extension could be negotiated, according to the department.

Brent Burkey

Brent Burkey

Brent Burkey covers York County, agribusiness, energy and environment, and workforce issues. Have a tip or question for him? Email him at brentb@cpbj.com. Follow him on Twitter, @brentburkey.

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