Thursday, October 8, 2015

Teachers' pension plan funds privatization of PA lottery

Gov. Corbett used Gov. Rendell's investment bank to hire a British company owned by Canadians to convince Pennsylvanians to gamble more

Teachers' pension plan funds privatization of PA lottery

Canada's Ontario Teachers' Pension Plan put up the $150 million cash and $50 million in credit to back UK-based Camelot Global Services that enabled Camelot to drive competing bidders Gtech and Tatts out of the picture.

If Republican Pa. Gov. Corbett is able to clinch the deal (he still needs Democratic Attorney General Kathleen Kane's support), Camelot and Corbett are pledged to increase the lottery's contribution to tax breaks for seniors and other state programs, add workers, and turn a profit for the operator.

To make it all work, all they'll need to do is convince a lot more Pennsylvanians to play the numbers. Camelot's Alex Kovachs tells more in my column in the Sunday Inquirer here.

(A previous version wrongly attributed to Kovachs the statement that the company's current cash flow would fund the $150 million. It's Ontario Teachers' money, Camelot spokeswoman Laura Pearson confirms.)

About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

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