Lottery Agreement Better Than Union Guesstimate

JANUARY 10, 2013 | by ELIZABETH STELLE, NATHAN BENEFIELD

AFSCME's counter proposal to the Pennsylvania Lottery private management agreement (PMA) provides no guaranteed revenue for senior services, no new jobs and no protections for taxpayers if profits fall short. Below is a side-by-side comparison.

  Lottery PMA with Camelot AFSCME "Counter Proposal"
Guaranteed Profits for Seniors $34 billion over 20 years None.
Annual Profit Growth 20 consecutive years of guaranteed growth, with payments to the state in case of shortfall Claims they can deliver faster growth, but historical profits declined in 3 of the past 6 years
Protections Against Shortfall A total of $200 million in collateral provided by private company funds Takes $500 million out of Lottery revenue to create a "Reserve Fund"
Management Profits Profit sharing only after first $34 billion in guaranteed revenue Approximately $100,000 in forced union dues from employees to AFSCME as a condition of employment
Employment  Expands Lottery workforce to include 70 state employees, a transfer of remaining state employees to Camelot, and the hiring of additional Pennsylvanians 230 state employees with no employment expansion
Annual Business Plan Required to submit Annual Business Plan None.  Recommends Department of Revenue craft an Annual Business Plan and Marketing Strategy
New Games  Regulated roll out of Keno and internet sales using worldwide experience Execute regulated rollout of Keno and internet sales with the help of a consultant
Opt-Out Protections Can terminate contract at any time for specific shortcomings and after 3 years for any reason None.  Cannot terminate employees for failing to meet performance goals

For more facts on the benefits of a private lottery manager, read our Lottery FAQ's.



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