A deal to privatize the Pennsylvania Lottery has hit a snag, but contracts with the two private firms advising the commonwealth on the plan means the state has some bills to pay.
The state could be on the hook for something on the order of $1.2 million dollars for work by its consultants on a deal to turn over the operations of the lottery to British firm Camelot Global Services.
Attorney General Kathleen Kane rejected the contract, but if the deal had gone through, payment to the two advisors could have been much higher – total pay was capped at $30 million.
Dan Meuser, secretary of the state Department of Revenue, which oversees the lottery, said Tuesday final payment for the two firms is still being determined.
“We’ve got to pay them for their work,” he said. “I mean, we’re not paying Camelot anything. We hired them to put something together and it’s in a stall.”
The firms probably won’t be paid until after the Corbett administration decides if it will appeal the decision to turn down the lottery deal.
“Given that a contract’s not in the immediate future, payments are likely going to be estimated, calculated, processed sooner rather than later,” said Elizabeth Brassell, a Revenue Department spokeswoman. The administration has until March 16 to file an appeal.
According to contracts with the commonwealth, Baltimore legal firm DLA Piper could receive as much as $375,000 for its work, while Chicago-based financial advisor Greenhill & Co. would be paid at least $850,000. The payments will come out of the state’s lottery fund.
