Lawsuit filed over effort to privatize Pa. lottery

[The Straight Story]

Lawsuit filed over effort to privatize Pa. lottery

HARRISBURG, Pa. - A state employees union and seven Democratic lawmakers filed a lawsuit in Commonwealth Court on Monday seeking to stop the state from privatizing the management of the lottery, saying Republican Gov. Tom Corbett doesn't have the authority to make such a move.

AFSCME Council 13 wants the court to prevent Corbett's administration from implementing an agreement with Camelot Global Services to manage the $3.5 billion lottery, one of the nation's largest. The lawsuit claims the Lottery Act of 1971 doesn't give the governor the right to privatize the lottery without approval from the Legislature.

"This administration is trying to rush this deal through while the Legislature is not in session and without any public input or scrutiny whatsoever," the union's executive director, Dave Fillman, said in a statement.

Corbett spokesman Kevin Harley called the lawsuit "frivolous."

"Nothing's been privatized yet," he said. "We are doing our due diligence."

Under the proposed contract, the state could end the deal for no reason after three years, plus six months for Camelot to finish up. One catch is the termination fee, which could be substantial. That amounts to the remaining value of Camelot's investment in things like equipment, technology and personnel, plus 10 percent.

http://www.philly.com/philly/news/politics/state/20121217_ap_lawsuitfiledoverefforttoprivatizepalottery.html

[rocktivity]

1. I thought the point of state lotteries was to enrich the state.

Doesn't privatizing it, and paying administrative fees, defeat its purpose?


rocktivity

[appleannie1]

2. Core Butt, keep your hands off our lottery. That money is for aid to the elderly not your corporate

friends.

[Smilo]

3. "Due Diligence" code

for who will give us the best pay back for doing this.

State lottery for a reason corbutt.