Top Democrat: Private Management Agreement Unnecessary for PA Lottery

The Pennsylvania Lottery’s 2011-12 Annual Report shows a 10.4% increase in net revenues, which means a record $1.06-billion will be used for programs that benefit the state’s senior citizens.

The positive financial news comes as the state Department of Revenue continues to investigate a potential private management agreement for the lottery, and House Minority Leader Frank Dermody (D-Allegheny) believes that it’s proof no such deal is needed.

“The lottery’s doing quite well and there’s nothing that the current folks can’t do that these new people could do, other than skim profits off the top,” Dermody tells Radio PA.  “This is just another solution in search of a problem.”

But the welcome lottery growth has not turned officials off to the idea of entering into a private management agreement.  “The need for the programs is going to grow over the next ten to 20 years, and we need to be looking at every possible way to increase the funding for our seniors,” Pennsylvania Lottery Executive Director Todd Rucci said in a telephone interview.

If officials decide to take the next step toward a private management agreement, Revenue Secretary Dan Mueser says invitations for bid could go out in the fall.