Pennsylvania Lottery - Stumbling Block for the Governor and AG

The Pennsylvanian governor Tom Corbett and his Attorney General Kathleen Kane, in a conflict over the privatisation of the State Lottery since last month, revised their opposite positions regarding the proposed contract with British lottery operator Camelot.

It was in February when Kane advised that state law does not allow the governor to privatise the management of the lottery, nor the expansion of gambling that the contract with Camelot would permit, especially in regard to online activity.

The lottery itself has been a continued multibillion-dollar success, with a well-established and efficient state enterprise, the entire proceeds of which currently go to state projects, so its proponents now ask why is it necessary to privatise it.

The governor ordered a revision of the vendor contract with Camelot Global Services, and the state Department of Revenue will submit a clarification to Kane and her office.

If Corbett decides to fight the AG's decision in court, that route might entail stalling the privatisation initiative for a prolonged period of time. The governor has since extended Camelot's bid to June 30 2013.

As Pennsylvania Senate President Pro Tempore Joe Scarnati said the administration was looking to scale back the scope of gambling allowed under Camelot's contract, while Senate Republicans were pressing it to make it clear that the lottery could not compete with land casinos through online gambling.

Pennsylvania Representative Tina Davis in her bill seeks the legalisation of intrastate online gambling ready to be launch, which could result in some intense state legislature activity in the near future.

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