The Pennsylvania Lottery could be run by a private company if the terms released Friday by the state are met by an interested business.
The state Department of Revenue said that the contract would be 20 years, with performance-based extensions that could stretch the deal to 30 years.
Other key terms include:
-- $150 million in upfront cash to be paid by the private manager
-- Annual profit commitments to grow funding for programs
-- Private manager compensation
The state said in a statement that it is evaluating bidders' business plans.
Gov. Tom Corbett floated the idea in April when he briefed top lawmakers and labor union representatives. Other states have also raised the idea.
The lottery reported more than $3.2 billion in sales in the 2010-11 fiscal year, its most ever and an increase of 4.6 percent over the previous year. After prizes and expenses, net revenue was $960.6 million, an increase of about 5 percent. That money goes to programs for the elderly, including a property tax and rent subsidy, transit, prescription drugs, senior centers and long-term care services. The Lottery was created in 1971 to generate funds for programs benefitting older Pennsylvanians.
Bobby Kerlik is a staff writer for Trib Total Media.
Most Popular Stories
- 5 Notable Hispanic Technology Executives
- Top Hispanic Tech Companies Push for the Top
- Rand Paul Tops Presidential Straw Poll at Conservative PAC Conference
- China Urges Malaysia Flight Emergency Response
- Visa, MasterCard Team Up to Focus on Payment Security
- Russia, Crimea Discuss Referendum
- Taco Bell Rings Up Breakfast Menu
- Gas Prices May Jump from Calif. Emissions Law
- Tesla's Alt-Energy Future Aims for Massive Lithium-Ion Battery Production
- Sunday Starts Daylight Saving Time