This was designed to help seniors, not private contractors. There certainly should be enough money from the lottery to keep it in the hands of the state. Why does the gov't want to give everything away to private investors, who will take profits away from seniors????

THE RICH ARE GETTING RICHER AND THE POOR ARE GETTING POORER!
TIRED OF READING SAD NEWS!

Everything should be privatized, starting with the LCB!

Some one is getting rich ,whats wrong with the present set up? Its just another way to steal from the seniors and use the money to plug the budget gap,but lets not tax the gas drillers .

Looks like Kanes first case to me.

Why? What are the benefits of private management vs state? Two decades from now there will potentially be a loss of social security and medicare to the seniors so now we take away the lottery benefits? Is there anything left to take?

Thank you folks. You took the words right out of my mouth. Actually you could see the writing on the wall when the payouts for Power Ball were changed last year. The timing of this really could not have been planned better. The election is over and the next major one won't be until 2014 I believe. Now would be a good time to contact your Commonwealth Senators and Representatives and let them have an ear full of the same BS they are giving the Seniors. A 20 year contract? Performance-based 10 year extensions? What do the Seniors get to replace the funds going to the private contractors? Who will audit the program and the contractor? I smell alot of money going into someone's pocket.

Leave it up to our idiotic governor to have another idiotic idea.

Governor Corbett could care less about seniors. This man has to go in the next election.

Back in the early 60's and before that the lottery was run by private individuals, it was called the "Mafia" back then. Seems like the Democrats have their hands in our pockets once again.

Casinos and horse-racing are privately managed with government oversight. Maybe the State could include sports betting in any bills as well.

I'm saying it is right or wrong to privatize the lottery, however if the goal is to increase sales of the tickets to provide additional funding for seniors and the private firm pays the commonwealth a fee up front while banking on their ability to increase sales to obtain the performance bonus this could be a win win situation. Face it who is better at marketing, government or private industry? If the commonwealth screws up the agreement then it is the wrong thing to do.

You people who think the government can do something more efficiently & less costly than private enterprise have no idea.

Look at it this way. If the government runs it it wouldn't make sense to tax it but if it's in private hands look out for the Taxman!

Corbett. One term too many

Corbett, will be a one term Governor. No one can tell me didn’t know about Sandusky. He was the Attorney General at the time and he never said a word, he’s as guilty as the rest of them, if not more. Then he wants’ to claim Bankruptcy for Harrisburg and when he was told he could not claim Bankruptcy he turned around and gave four of his staffers a $ 10,000.00 raise. He is an arrogant man who should never be given a second term. Hell I’d take Christie over this moron!

And I'm sure the winner of the contract will be a regular and large Tom Corbett campaign donor. Notice nothing is said in the story about this being cost saving move.

Another example or Corbett handing out gifts to his political cronies.Next he'll be putting up the Turnpike for private management for another one of his big campaign contributors to snatch up.

The Office of the Auditor General is responsible for auditing misuse of tax dollars of the Commonwealth not money generated by private corporations. It seems that once the PA Lottery is turned over to a private corporation, that Office no longer has jurisdiction to perform an audit unless there are signs of fraud. It will also depend upon how the contract for the management of the lottery is written. As far as the $150 million up front payment is concerned, any contractor who has not built in a means to recoup their $150 million investment is not one I would invest one penny with. Yes, the Seniors might at first glance be getting $150 million up front, but, what other money won't they be getting in the future in terms of fees and commissions paid for services rendered? If memory serves me correctly, wasn't it back in 1981/1982 that the Commonwealth withheld over $400 million dollars of lottery proceeds refusing to release the funds for the Seniors? Substance.

The less the state has their hands in the better. Talk about a republican stealing your money? Who approved casinos? The only reason states have lotteries and casinos is a way to tax you with out sending you a bill in the mail. If you don't play the lottery you have nothing to worry about. Your just wasting your money anyway.

Is there a better way for Gov. CornButt and his Rethuglicans to start their re-election campaign 2014? Hand all the public lottery funds to a private company, so the private company can donate all of the money collected back to the Govs re-election fund. Keep It Simple, Stupid.

Typical Corbett. I don't remember him campaigning on privatizing the PA Lottery.
And announcing it on a Friday of Veterans Day -- so it sneaks out from under the eye of the public.
How do we stop this from happening!?

Less government is always best, however, even a cursory search of Gov Corbett reveals much that is not good. Like the $465,000. in campaign contributions over four years from "the second mile foundation" to then Attorney General Corbett. I would suspect there is something fishy with this lottery deal simply based on track record. More often than not politicians are self serving, the people will get screwed again, and the perp will walk.

That is what I meant. The democrats will do anything to take your money. Casinos etc. Why are people so concerned about privatizing the lottery? Remember "REAL PEOPLE" your neighbor, brother, father's, mother's, work for all of the business' that everyone thinks are evil empires there to take your money. Last time I checked the one "business" i pay money to that I am typically disgusted with what I get in return is our government. Business and competition is good. Think about this....(and I use the US mail) but how bad would the US mail be if UPS and FedEx didn't exist? FedEx and UPS force the postal service to innovate and compete with timely service. The lottery will be stronger and more efficiently run.

Not surprised. I'm sure these people will be in the news in a year or two for embezzlement.

So someone tell me , does the state get and give out the same money or more money cause of this?????

It appears that Corbett's goal is to sell off every profitable state entity to his friends in the private sector. First he gave away our land to the gas drillers cheaper than any other state in the union (yes, even Texas has gas drilling taxes) then he tried to give away the state stores (but was rebuffed by members of his own party) and now is trying to give away the lottery system. This guy may be the most corrupt shill I have ever seen in PA. Based on what happened on Tuesday, I doubt he'll be re-elected but I honestly don't think he cares. He's already been well taken care of and will end up with a seven figure job on the board of a gas company when he is booted from office. Hopefully he won't be able to completely sell out the state before then.

I also hope the new Democratic AG goes after Corbett for his role in the Sandusky cover up at PSU. Maybe then we can impeach this rotten SOB!

Watch the ads the lottery contributes $980,000,000 million, they say almost a billion, to senior services, transportation, medicines etc. I have looked at the state budget. It is a true fact. The governor wants a $150,000,000 upfront. WOW somebody should make a lot of money. I do not know any lottery employee today. At one time it was a haven for patronage, but I understand the employees are now required to work pretty hard. I'm waiting for the state to put the election bureaus in a private contractors hands. Then they could really control things.

How did the governor determine the "right price" for the private lottery manager to pay the Commonwealth and still have the manager get a return on their investment? Would there be a guarantee that the citizens of PA would get more funding on an ever continuing basis or at least as well as if lottery management had been retained by the state ?

Is the only reason for making such an almost irreversible agreement because there an assumption that no government agency can be smart enough compared to private corporation. Does that mean that an elected governor and governing body are always inefficient and ineffective compared to a private company, say like Enron, Bear-Stearns, or Edsel Motors? Should the management of the Defense Department go out for private bid?

This is an excellent start. Stephen Long, you make some excellent points (and I must say, rationally spoken arguments). There is much to be gained (and saved by taxpayers) by privatizing the lottery. Oversight will be important and that is where and what the State's role should be, not managing the day-to-day operations. I can only imagine the tentacles of the bureaucracy that currently does so and it would be interesting to see an organizational chart on "Dept. of Lottery" The considerable upfront payment that prospective contractors bidding on this work ensures that the winner is committed to the longterm health and prosperity of the program and the intended recipients of that help. (Again, see State oversight). Having said that, I do not play the lottery regularly and don't like gambling in general. When I look at the lottery lines, I see people, the majority of them with limited means, throwing away their money, hoping for that once in a million lucky hit. Sadly, they are likely the same ones that threw away their vote with equal gusto, lured by the promise that a bigger government will someday benefit them. If they are HOPING for a lucky hit, they will be disappointed.

The ones who spend the most on the lottery are the ones who have the least.
i allways thought gambling was a sin , but now the stae has the lottery and casinos.
Well i guess it a way for the state to get some of the money back that they give out..but it aint right. BAN THE LOTTERY, along with dick, Head to Las Vegas, for your gambling.

Ok, so this is news, but breaking news? Really?

seems so

Yes. It's news. And there's a reason why Corbett put it out on Friday of a long weekend. You simply need to pay attention and realize when you're (and the state) are about to be fleeced. The PA Lottery is a huge asset to the seniors in PA and it's essential that there is no corruption in the system -- yet whomever gets this contract is pretty free of accountability. This is public $$$, not Corbett's to punt to a private buddy.

our State is in the hands of a teabag party republican (corbett)...this is what republicans generally do...they take a big profit (or bonus) for themselves...if there's anything left...then it might get into the hands of folks who need funding/programs.

Making a fair judgment about the lottery deal isn't possible because of the lack of details. We now know that the State will receive $150,000,000 up front and will maintain "control" of the lottery (whatever that means). What we do not know is what the private managers will get in return. Keep in mind that those managers will pay $150,000,000 up front for a 20 year deal. There has to be a silver lining for them somehow 'cause no good business person is sinking that kind of money upfront into a deal without having a big expectation of payoff over the long run. The only way for citizens to be able to make an comparison of the gain/loss possibilities is to know what the State nets from the lottery each year and what it will net each year once such a deal is made. I notice that that information has not been provided. Why is that? Surely the Gov has done that analysis, or has he?

You can bet your bottom dollar that Tom Corbett will get a piece of the action in some way, shape or form and his pockets will be handsomely lined. Most likely a hand picked private contractor who will grease their palms monthly.

I found some additional information and posted some thoughts to my Patch.com blog here: http://balacynwyd.patch.com/blog_posts/pa-lottery-management-proposal-good-or-sweetheart-deal

I remember when Gov Rendell was going to privatize the PA Turnpike to a company from Spain.

Did you all forget this is about the LOTTERY? LOL

Why not let McGrath Homes manage it? That way seniors can pay a bunch of money for promises and get nothing

So we know that $150million is a joke in terms of amount per annual Lottery sales ('11-'12 = $3.5billion).
What % does the private company get on the projected annual $4.5BILLION gross Lottery sales.
Do the elderly -- and the rest of PA citizens realize that this is a recipe for disaster?

Amen Robert!

Not off hand, but I like what I hear coming from you.

Richard, I do just as you suggest regularly.

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Radtiag, what does your comment have to do with the lottery?

Well back in November I asked if anyone remembered how Rendell wanted to privatise the turnpike. And some wanted to know what does this have to do with the lottery? Now we have Corbett wanting to privatise the lottery. Just follow the money.