Pennsylvania A.G. nixes Camelot lottery contract

Pennsylvania’s plan to bring in the UK lottery operator Camelot to run its $3.48 billion state lottery has run afoul of the state’s Attorney General, Kathleen Kane, who claims that the governor’s office “exceeded its authority” in awarding the contract.

AG Kane said Thursday that the agreement with Camelot is illegal because it was not concluded with the state Legislature’s approval and is therefore unconstitutional.

She said that the contract was specifically illegal because it infringed on the Legislature’s authority; permitted electronic games that require the Legislature’s approval; and allowed Camelot indemnification of “indirect expenses,” which violates the constitution.

Governor Tom Corbett, who was at one time himself the Pennsylvania AG, agreed in January this year to award management of the state lottery to Camelot, triggering criticism from Democratic Party legislators and a union representing lottery workers.

Camelot has estimated $34 billion in lottery profits over the next 20 years.

The governor had not responded to the AG’s comments when we went to press.