Pennsylvania Lottery

Another Step toward Private Management of the Pennsylvania Lottery

The Corbett administration is taking the next steps toward a Private Management Agreement (PMA) for the Pennsylvania Lottery.  Late last week the state announced the terms for a potential PMA, which include profit commitments for 20-years that would ensure growth in the programs that benefit the state’s senior citizens. 

“We are looking to privatize.  The final decision hasn’t been made yet, because we have to wait for bids and see how the bids turn out,” Governor Tom Corbett said at an unrelated event. 

“If I find that it’s going to cause us to lose money, are we going to do it?  No.” 

Pennsylvania Lottery net revenues increased by more than 10% last year and many legislative Democrats question any move toward privatization when the Lottery is producing record profits.  “No corporate operator can guarantee the same low overhead costs, and ever future dollar that goes to a private management company is a dollar taken away from critical senior programs like PACE, shared rids and rent rebates,” says House Democratic Leader Frank Dermody (D-Allegheny).    

The other terms laid out for a potential PMA include $150-million in collateral, the responsible implementation of monitor and Internet-based games and a provision that ensures ownership and control of the Lottery is retained by the Commonwealth.