Pa. returns $50 million to UK firm in lottery deal

Corbett administration returns $50 million security deposit to firm in Pa. Lottery deal

Associated Press

HARRISBURG, Pa. (AP) -- Gov. Tom Corbett's administration has returned a $50 million security deposit to a British firm that had submitted the only bid to manage the $3.5 billion Pennsylvania Lottery before Attorney General Kathleen Kane rejected the contract as illegal.

Department of Revenue Secretary Daniel Meuser said Tuesday that the administration will get a promissory note if it pursues the ability to hire Camelot Global Services. The Corbett administration can appeal Attorney General Kathleen Kane's rejection in court, although Meuser says the administration and Camelot are still considering their options.

Camelot's bid to produce $34 billion in profits over 20 years expires Friday. Camelot would have replaced the state employees who run the lottery. Democratic lawmakers and the union that represents lottery employees are also challenging the contract's legality in court.