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CAMELOT ONLY BIDDER IN PENNSYLVANIA LOTTERY TENDER
11/22/2012 : CAMELOT ONLY BIDDER IN PENNSYLVANIA LOTTERY TENDER
Could be awarded 20-year contract by year's end
Camelot Global Services PA L.L.C. a subsidiary of UK National Lottery operator Camelot, is reportedly the only bidder in a tender process issued for a 20-year contract to privately manage the 41-year-old Pennsylvania Lottery
According to the State Department of Revenue, the contract could be awarded as soon as year-end following due diligence on criminal background and financial history.
The department will additionally weigh up past and projected lottery performance against what Camelot is offering to ensure growth in profit above what it could achieve on its own.
"The receipt of a priced bid represents an important milestone in this process," said Revenue Secretary Dan Meuser. "While there are several additional steps before we'll be prepared to make a final decision ... it is encouraging to see the potential private manager propose 20 years of significant profit growth."
Camelot is understood to have promised $ 34 Billion in profits over the 20 years, the State-run lottery reported ticket sales amounting to $3.2 Billion last year, with all proceeds, amounting to around $ 1 Billion, being spent on funding programmes that benefit the elderly.
Camelot will drop $50 million on the award of the contract, which Pennsylvania State will keep if Camelot choose to back out of the contract at any stage.
The Camelot Group is owned by the Ontario Teachers' Pension Plan who acquired the group in 2010 for GBP 389 Million.
In related news, The UK National Lottery operated by Camelot reported an 8 percent increase in total sales amounting to GBP 3 528.8 Million (its highest ever) for its six month period ending September 29, 2012.
The organisation said it awarded GBP 1. 86 billion in prize money and allocated GBP 952.8 million for good causes.
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