Lottery Privatization Process = Full Term Pregnancy

DECEMBER 28, 2012 | by ELIZABETH STELLE

Nine months is a long time...trust me, I'm seven months pregnant. So why are critics arguing the lottery bidding process has been hurried?

Far from being secretive or rushed, the formal process to contract out the management of the Pennsylvania Lottery began nine months ago, following a legislatively-commissioned study of the Lottery.

Here's a detailed timeline of the process:

  • June 2011: House Resolution 106 passes (202-0), requiring a study of the Pennsylvania Lottery.
  • Feb. 2012: Legislative Budget and Finance Committee releases Report on the Lottery, finding profit shortfalls will threaten senior services.
  • April 2, 2012: Commonwealth issues Request for Qualifications (RFQ) to solicit potential private lottery managers and verify potential bidders are qualified.
  • April 3, 2012: Aging Secretary Brian Duke, Revenue Secretary Dan Meuser, and Lottery Director Todd Rucci testify before the House Aging and Older Adult Services Committee regarding the process for the Lottery PMA.
  • June 12, 2012: Pa. Department of Revenue announces plans to forward with the next phase of the PMA.
  • Jun. 22, 2012: Department of Revenue issues Invitation for Bid - Step One
  • July 2012: Bidder meetings and site visits conducted to ensure bidder integrity.
  • Aug. 2012: One qualified bidder withdraws from the process to explore other Lottery PMA opportunities.
  • Aug. - Oct. 2012: Business terms and contract negotiated with qualified bidders.
  • Nov. 2012: A second qualified bidder withdraws because they believe the PMA is too one-sided in the commonwealth's favor.
  • Nov. 9, 2012: Department of Revenue outlines key terms of a Lottery PMA.
  • Nov. 15, 2012: Department of Revenue issues Invitation for Bid - Step Two
  • Nov. 16, 2012: The final qualified bidder submits a priced bid and $50 million bid security.
  • Nov. 20, 2012: Department of Revenue announces winning bid and posts full PMA online. Commonwealth launches full investigation of Camelot to verify all claims made in PMA.
  • Dec. 31, 2012: Expiration of Camelot binding bid, barring extension.
  • Jan. 8, 2013: Deadline for AFSCME to offer a counter-proposal.
  • Jan. 14, 2013: Scheduled Senate Finance Committee hearing on the Lottery PMA.
  • Jan. 16, 2013: Deadline to accept Camelot's bid according to Pennsylvania's Procurement Code, barring extension.

To learn more on why private management of the Pennsylvania Lottery is better for seniors and taxpayers, read our Lottery FAQ.

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