Gov. Tom Corbett is ending his pursuit of the British national lottery operator to run the Pennsylvania Lottery in a privatization deal promising $34 billion in profits over 20 years.
Corbett's announcement Monday came nearly a year after Attorney General Kathleen Kane rejected the Camelot Global Services contract as illegal.
The governor's administration also couldn't persuade lawmakers to make such a contract legal.
"Gov. Corbett wasted $3.4 million of our seniors' moneys pursuing an initiative that he knew was illegal more than a year ago," said Pennsylvania Treasurer Rob McCord. "While I'm proud to have been the first to say so, many others followed – most notably, our attorney general, Kathleen Kane, whose brave ruling of unconstitutionality marked the beginning of the end of Gov. Corbett’s failed plan."
Corbett is not ruling out rebidding a lottery management contract in the future, but spokesman Jay Pagni said it makes sense to move on because Pennsylvania's political, legislative and competitive landscape has changed since Camelot submitted its bid.
The deal was worth hundreds of millions of dollars and cash incentives to Camelot. The Pennsylvania Lottery is among the nation's largest, with $3.7 billion in sales last year. Proceeds benefit programs for senior citizens.