Thursday, January 24, 2013

Follow Up: Pennsylvania's Privatization of Lottery

On Thursday, January 17, I posted an article discussing Pennsylvania Governor Tom Corbett's plan to privatize his state's lottery system. The sole company seeking control of the lottery, Camelot Global Services, has recently received some scrutiny in the United Kingdom where it manages the National Lottery. Jan Murphy, of the Patriot News, has posted an update detailing some concerns over the prospective purchaser.  

It was recently revealed that Camelot set aside $8 million dollars as bonuses to compensate executives. The news of these excessive bonuses coinciding with the recent decision to double lottery ticket prices leads many customers to the conclusion that these two things are related. However, a company spokesman for Camelot refutes these allegations and claims that these recent developments are unrelated.  The spokesman further urged that the raising of lottery ticket prices in the United Kingdom will ultimately have no effect on ticket prices in Pennsylvania. 

There have been many concerns raised over privatizing the lottery in Pennsylvania such as the lack of transparency of the process to concerned citizens, the rapid rate of speed at which the deal is progressing, and whether or not Governor Corbett legally has the authority to continue without receiving legislative approval. Senate Democratic Leader, Jay Costa, specifically expressed some of these concerns: “We said all along that this governor is giving a foreign company the ability to take hard-earned wagered dollars in Pennsylvania and shipping them overseas for high-ranking Camelot employees. We think those dollars should be invested back into state programs for seniors.”

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