The commonwealth and Camelot Global Services PA LLC have mutually agreed to extend Camelot’s bid, originally set to expire Dec. 31, 2012, to Jan. 10, 2013.
The extension allows the union representing Lottery employees to present for commonwealth review a counter-proposal. Due to a commonwealth-granted extension, the union has until Jan. 8 to present a counter-proposal.
The bid extension will also allow additional time for risk mitigation firm Kroll Advisory Solutions to complete its final report to the commonwealth regarding the suitability and integrity of Camelot as a potential private manager.
Camelot’s priced bid proposes $34 billion and 20 years’ worth of Lottery profit growth, should a private management agreement for the Pennsylvania Lottery be executed. The bid continues to be supported by $50 million in bid security the commonwealth would retain if the bidder is awarded the private management agreement but fails to execute the contract.
Once the union counter-proposal and probity report are received and considered, if a private management is determined to be in the best interest of protecting and growing Lottery funding for a dramatically growing population of seniors, a second bid extension would be negotiated by Camelot and the commonwealth.
From State Senator Mike Brubaker (R-36), Chairman of the Senate Finance Committee:
State Senator Mike Brubaker (R-36), Chairman of the Senate Finance Committee, issued the following statement today regarding the decision to extend a private bid to manage the Pennsylvania Lottery and emphasized the importance of his panel’s public hearing.
“I am pleased to learn today that through negotiations between the Corbett Administration and British-based Camelot a decision was made to extend the deadline to privatize the management of our state lottery. Although the new deadline has been set for January 10th, I have been informed through conversations with the Governor’s office that a second extension is anticipated in the days that follow.”
“Because an additional extension is likely, the Senate Finance Committee will not alter its plans and continue to move forward with the public hearing scheduled for January 14th, thus providing an opportunity to fully vet the impact of privatizing this massive enterprise.”
“With a potential $34 billion commitment to a lottery expansion, we – as elected officials – have a duty to all Pennsylvanians to ensure such discussions and questions surrounding this issue are open, transparent and above reproach. Our testifiers will provide on the record statements regarding the financial implications of such a decision, the ramifications to the nearly 200 lottery employees, as well as the legality of the overall bidding process.”
“While I do support the privatization of governmental services when feasible, each decision to do so should only occur after an open and thoughtful process which is completely aired in the public. In the coming days, I will closely monitor this ongoing process to ensure all parties involved recognize the urgency and need for the Finance Committee’s public forum.”
The extension allows the union representing Lottery employees to present for commonwealth review a counter-proposal. Due to a commonwealth-granted extension, the union has until Jan. 8 to present a counter-proposal.
The bid extension will also allow additional time for risk mitigation firm Kroll Advisory Solutions to complete its final report to the commonwealth regarding the suitability and integrity of Camelot as a potential private manager.
Camelot’s priced bid proposes $34 billion and 20 years’ worth of Lottery profit growth, should a private management agreement for the Pennsylvania Lottery be executed. The bid continues to be supported by $50 million in bid security the commonwealth would retain if the bidder is awarded the private management agreement but fails to execute the contract.
Once the union counter-proposal and probity report are received and considered, if a private management is determined to be in the best interest of protecting and growing Lottery funding for a dramatically growing population of seniors, a second bid extension would be negotiated by Camelot and the commonwealth.
From State Senator Mike Brubaker (R-36), Chairman of the Senate Finance Committee:
State Senator Mike Brubaker (R-36), Chairman of the Senate Finance Committee, issued the following statement today regarding the decision to extend a private bid to manage the Pennsylvania Lottery and emphasized the importance of his panel’s public hearing.
“I am pleased to learn today that through negotiations between the Corbett Administration and British-based Camelot a decision was made to extend the deadline to privatize the management of our state lottery. Although the new deadline has been set for January 10th, I have been informed through conversations with the Governor’s office that a second extension is anticipated in the days that follow.”
“Because an additional extension is likely, the Senate Finance Committee will not alter its plans and continue to move forward with the public hearing scheduled for January 14th, thus providing an opportunity to fully vet the impact of privatizing this massive enterprise.”
“With a potential $34 billion commitment to a lottery expansion, we – as elected officials – have a duty to all Pennsylvanians to ensure such discussions and questions surrounding this issue are open, transparent and above reproach. Our testifiers will provide on the record statements regarding the financial implications of such a decision, the ramifications to the nearly 200 lottery employees, as well as the legality of the overall bidding process.”
“While I do support the privatization of governmental services when feasible, each decision to do so should only occur after an open and thoughtful process which is completely aired in the public. In the coming days, I will closely monitor this ongoing process to ensure all parties involved recognize the urgency and need for the Finance Committee’s public forum.”