HARRISBURG - A new extension was agreed upon Friday for a proposed Lottery privatization bid as opponents of the idea say a record sales report throws more cold water on the prospect.
The proposed management contract was negotiated late last year between the Corbett administration and Camelot Global Services and the terms are now extended until Aug. 30, said Revenue Department spokeswoman Elizabeth Brassell on Friday.
The terms have been extended several times without being fully executed since state Attorney General Kathleen G. Kane rejected the deal last February on grounds that it's illegal. The administration and Camelot are considering potential revisions to get the attorney general's approval.
Privatizing the Lottery's management has been one of Gov. Tom Corbett's most controversial proposals this year, with Democratic lawmakers solidly against it. Administration officials said they are preparing for the future as demand continues to grow among senior citizens for Lottery-supported services.
The sales report earlier this month offers fodder for both sides of the debate.
Lottery sales hit $3.7 billion for the 2012-13 fiscal year, an increase of $219 million, or 6 percent from the previous year. Sales increased for both instant games and terminal-based games.
Profits were slightly above $1 billion, increasing $6.5 million, or under 1 percent.
This is the second year in a row a sales record has been set.
Democratic lawmakers seized on the report to call on Corbett to abandon the privatization venture.
"Why is Governor Corbett so intent on privatizing a lottery that has been a national model for decades and just delivered more than $1 billion in programs that help senior citizens?" asked House Minority Leader Frank Dermody, D-33, Allegheny County.
He said the Lottery's continued success is attributable to the state employees who run it.
"The continued pursuit of privatization by the governor is a waste of energy and money," said Senate Minority Leader Jay Costa, D-43, Pittsburgh.
The administration said the sales record obscures other issues.
"We earned $6 million more than the previous year," said Brassell. The Lottery will need to boost annual profits much more than that to keep pace with the use of Lottery programs by a growing senior population regardless of who runs it, she said.
Camelot has pledged to produce $34 billion in lottery profits during the next 20 years to help maintain senior benefits through a strategy of getting more people to play and adding keno and online games.
One key issue raised by Kane is whether legislative approval is needed to add keno.
While the contract's fate is uncertain, the new state budget provides an additional $50 million of Lottery revenue to spend on senior programs. These include Corbett's proposals to expand services under home and community care programs, modernize senior centers and provide prescription drug aid to 300,000 senior citizens.