Pennsylvania and Camelot Global Services PA LLC mutually agreed to extend the firm's bid for private management of the state lottery, to Jan. 10 from Dec. 31. The extension allows the union representing lottery employees to present a counter-proposal for state review. Due to a commonwealth-granted extension, the union has until Jan. 8 to present a counter-proposal.
The bid extension will also allow additional time for risk mitigation firm Kroll Advisory Solutions to complete its final report to the commonwealth regarding the suitability and integrity of Camelot as a potential private manager.
Camelot's priced bid proposes $34 billion and 20 years' worth of lottery profit growth, should a private management agreement for the Pennsylvania Lottery be executed. The bid continues to be supported by $50 million in bid security the state would retain if the bidder is awarded the private management agreement but fails to execute the contract.
In April, the commonwealth began exploring a private management agreement for the Lottery as a way to maximize profits.
Fitch Ratings assigns a AA-plus rating to Pennsylvania's general obligation bonds, while Moody's Investors Service and Standard & Poor's rate them Aa2 and AA, respectively.