PA Lottery May Become Privately Managed

Editor's note: To read the terms of agreement and a document including a list of frequently asked questions about the agreement, click on the attached PDF files.

The Pennsylvania Department of Revenue will announce later today the terms for a potential private management agreement for the Pennsylvania Lottery -- a deal that reportedly would call for a $150 million upfront payment “to be provided by a private manager," according to an email sent by Gov. Tom Corbett’s office.

Canon-McMillan Patch has obtained a copy of the email in which Andrew J. Ritter Jr., the governor’s executive deputy secretary, said the commonwealth would retain ownership and control of the lottery. The commonwealth would continue to handle specific business responsibilities, while other responsibilities are to be transitioned to a private manager, according to the email.

The email does not spell out the specifics of that proposed division of responsibilities. The private manager would be selected through a bidding process, according to the email.

The email also indicates that the agreement would call for be a 20-year base contract, although performance-based extensions could increase its term to 30 years.

There would also be annual profit commitments for two decades to grow funding for lottery-related programs benefiting older Pennsylvanians, the email indicated.

A call to Department of Revenue's communications department was not immediately returned Friday afternoon.