Kane rejects Pa. lottery contract, citing constitutional grounds
Pennsylvania Attorney General Kathleen Kane rejected the state's contract with a British firm to manage the $3.5 billion Pennsylvania Lottery, saying it "contravenes the constitution."
Kane rejects Pa. lottery contract, citing constitutional grounds
Pennsylvania Attorney General Kathleen Kane rejected the Corbett administration's contract with a British firm to manage the $3.5 billion Pennsylvania Lottery, saying it "contravenes the Pennsylvania constitution."
Kane, speaking at a press conference, said among other things the contract "usurps the power of the Gaming Control Board's to regulate expanded gaming."
"We review approximately 5,000 contracts a year, and while most are approved, we not rubber stamp any one of them," Kane said, as cameras clicked away as she read her statement.
"We reviewed this contract with great care and with a focus on the law," the attorney general said of the lottery privatization agreement. "The proposed contract contravenes the Pennsylvania constitution and is not statutorily authorized."
Kane did not take any questions during her brief press conference.
Gov. Corbett issued a statement late Thursday saying he was "deeply disappointed' in Kane's action.
"I don't agree with the attorney general’s analysis and decision, and we will review our legal options," said Corbett.
Camelot Global Services' bid to take over lottery management from state employees expired Saturday.
The rejection by Kane, a Democrat who took office last month, represents the first parry in what is likely to be a tense relationship with the Republican governor.
Corbett had called the attorney general's role a routine contract review and had pressed to make her decision on the form and legality of the 20- to 30-year contract designed to increase funding for senior services.
Corbett formally announced last month that he would award Camelot the contract in exchange for $34 billion in profits over 20 years. The larger revenue was built on the presumption of expanded gaming, including keno and online gaming. Last week in his budget address Corbett said he would include an additional $50 million for senior programs if the contract, for which Camelot was the sole bidder, was approved.
For its part, Camelot on Thursday said it was disappointed with Kane's decision.
"We guarantee our proposal will produce unprecedented profits for senior programs and we have backed our investment in Pennsylvania with $200 million – transferring all risk from state taxpayers," the company said in a statement. "Camelot has indicated it would headquarter in Pennsylvania, pay all taxes required of any commonwealth business, and keep all lottery jobs in the state. We have also publicly stated we would not oppose union organization by our employees.”
Senate and House Democrats, on the other hand, were elated by the news, calling the contract "ill-conceived and illegal."
House Democrats even raised the ante by announcing legislation to provide an additional $120 million in additional funding for senior programs.
Both Democratic lawmakers and AFSCME, the union that represents 170 lottery employees, are challenging the legality of the deal in court. Republican lawmakers also have questioned the speed and lack of transparency involved with the deal.
Since the founding of the lottery 43 years ago, proceeds have been dedicated to supporting senior programs, including prescriptions drugs and transportation.
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Liberals complain we need to find more revenue to throw at the teachers' unions and other state programs. But then when we find ways to raise more revenue, they grandstand and obstruct.— MattPSU- I don't care if Kane is grandstanding all the way. Stopping Corbett from giving away state assets for a song is the right thing to do no matter what your motivation.— Dave Clemens
- Mr. Corpse-Bait will be looking for other alternatives to get the money to his cronies, that's for sure.— ricciaje
- Repiglicans would sell their young if they thought it would make them money.— Kolitz
- does it bother anyone how much we now rely on gambling to pay for services?— Gradhospital
- Yes, it does but let the money remain in PUBLIC hands.
Don't hate the player...hate the game.
From the very beginning this was billed as a gimmick to avoid taxes: Taxes, which are the price of civilization.
PS: "Gambling" is the most advertised local/state/federal government service....Yes it does bother me (Do you know what the number was today...by the way?).— Cuddles - does it bother anyone how much we now rely on gambling to pay for services?— Gradhospital
- Kane did her job. She just avoided a lawsuit from the other bidders. Both Democrats and Republicans questioned the legality of a governor putting a gambling contract out for bid and awarding it to the single bidder in total secrecy. The reason that there was a single bidder was because the process was crooked. The other bidders dropped out because Corbett’s team refused to provide information that they requested. Now that it is clear that what Corbett did was illegal, there should be a wider investigation of the entire bidding process. A little transparency with this administration is overdue.— MikeP
- Not a fan of Corbett, but were the liberals on here outraged when Fast Eddie Rendell wanted to sell control of the Pa Turnpike to a Spanish company? As for Kane..keep an eye on her and her political doings. Me thinks there is a higher power pushing her agenda.— FletcherT
- Keep it up Kane! When can we expect a THOROUGH investigation of Corbett's failed Sandusky "investigation?" how this guy sleeps at night knowing he enabled a pedophile just to please PSU. Disgusting!— The Fundamentals of the Economy are Fine
- All I know is that government does NOTHING more efficiently than the private sector.. so not even having read all the details behind this, I know already that Pennsylvanians lost.— Freddy
- She has brains, balls and character. She should run against Corbett next year. There would be no contest.— snealfleeba
- She needs to complete her review of his bungling of the Sandusky investigation first. She is in the right job for now...
- "When can we expect a THOROUGH investigation of Corbett's failed Sandusky 'investigation?'" --- You mean the successful investigation that convicted a child predator and exposed a huge coverup by Penn State? Or is it just your intention to distort the facts?— psyrus
- "the legality of a governor putting a gambling contract out for bid and awarding it to the single bidder in total secrecy." --- The law was followed. The RFQ was posted to the PA Department of Revenue website. Please show me where that constitutes "total secrecy".— psyrus
