The
Camelot Group of Companies, the licensed operator of the UK National Lottery,
has submitted a bid to run the Pennsylvania Lottery, which the state is
attempting to outsource through a Private Management Agreement (PMA).
Camelot
has submitted a priced bid that includes 20 years' worth of annual profit
commitments. The bid is valid until Dec. 31 and is supported by $50 million in
bid security the state would retain if the bidder is awarded the PMA but fails
to execute the contract.
“The
receipt of a priced bid represents an important milestone in this process,
which began last April,” said Dan Meuser, revenue secretary for the state. “While
there are several additional steps before we'll be prepared to make a final
decision, this is a proposal that warrants a complete and detailed review, and
it is encouraging to see the potential private manager propose 20 years of
significant profit growth.”
Now
that a binding bid has been received, the state will consider the bid against historic
and projected Pennsylvania Lottery performance data to ensure the bid provides incremental
profit growth above what the lottery could achieve on its own. Additionally,
risk mitigation firm Kroll Advisory Solutions will conduct a full investigation-delving
into criminal history, financial history, reputation, business practices and contractor
integrity-into Camelot and its executives. Kroll's findings will be used to evaluate
the suitability of the bidder before a private management agreement would be executed.
Pennsylvania
is also engaged in discussions with the union representing lottery employees consistent
with the union contract. The state will evaluate and consider any alternate plan
the union may propose prior to making a final decision.
The
state began exploring a PMA for the Pennsylvania Lottery earlier this year as a
way to maximize lottery profit and ensure secure, predictable funding for
programs benefitting a dramatically growing senior population. The lottery was
created in 1971 to generate funds for programs benefitting older adults. Since
1972, when its first game went on sale, the Pennsylvania Lottery has contributed
nearly $22.6 billion to programs for seniors. The Pennsylvania Lottery remains the
only U.S. Lottery that exclusively designates all proceeds to programs
benefitting older residents.
The
Camelot Group of Companies has more than 18 years of experience in running
lotteries. In the United Kingdom, Camelot is the licensed operator of the
National Lottery and is committed to raising money-£29 billion to date-for the
Good Causes, the UK beneficiaries of the lottery. In 2010, one of the world's
largest singleâprofession
pension plans, Ontario Teachers' Pension Plan, acquired the Camelot Group of
Companies.
Camelot bids to run Pennsylvania Lottery
December 6, 2012
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