By Dick Miller
WE CONNECT DOTS: The Republican Governor’s efforts to expand gambling through privatizing the PA Lottery suffered a major setback last week when Attorney General Kathleen Kane rejected the contract.
Democrat Kane cited several legal reasons and sections of the state constitution in rejecting a pact between the Commonwealth and British-based Camelot Global Services PA. The parent company runs the United Kingdom’s lottery.
Camelot guaranteed to deliver $34 billion to the state over the next 20 years that could be used for senior citizens programs. The state-controlled lottery’s contributions were a little north of $1 billion in the year ended last June 30. That is a record.
The state lottery has had decent growth but it is not keeping pace with an increasing older population. Currently the funds provide cheaper prescription drugs and rebates on property tax for older citizens.
Corbett could lose votes in 2014 when he runs for re-election if he fails to ring up an increase in lottery funds. Voters have not been known to hand out “Atta boys” in recent elections for efforts without results.
First, this is not the liquor stores being privatized. Franklin & Marshall College political poll two weeks back reported people overwhelmingly opposed turning over management of the Lottery to a private company by 64 to 18 percent.
Second, Corbett should have tried to privatize the lottery two years ago when he first took office. This allows voters time to forget. If not then, even two months earlier would have put the decision in Republican Linda Kelly’s hands. She is the last AG and was handpicked by the Governor.
Third, AG Kane is only Corbett’s first hurdle. He can waste months battling the Attorney General in the Courts. In her rejection of the contract last week, she cited three sections of the PA constitution. Also Camelot’s contract gave it the right to introduce keno in every town. Kane claimed the contract contravenes both the PA Gaming Laws and the powers of the state Gaming Commission. Only one of Kane’s objections has to stick in appeals courts.
Kane’s rejection “highlights the need for us to clarify this area of the law,” said Dominic Pileggi, Senate Majority Leader and Republican. He could be pipe dreaming given the results of the Franklin & Marshall poll.
These days it is unlikely there are 26 votes in the Senate and 102 in the state House of Representatives (the minimum for majority in each chamber) to pass any measure that controversial.
This legislation would need bi-partisan support. Former Gov. Ed Rendell, who brought gambling to Pennsylvania with a law he signed in 2004 says he is “associated” with Camelot Global Services. The reports of this arrangement have not been more specific. Given his end-term popularity, Rendell will produce few Democrat votes.
Finally, casinos have been uncustomarily silent on the issues of expanding the lottery and offering keno at every bar, restaurant and other public business in the state. If Corbett’s expansion plan begins to move, “Guido and the boys” may come calling. Each casino was required to pay $50 million for a gambling license, more than enough to expect some guarantees.
Pennsylvania already has the highest tax in the nation on its casino gambling and has vaulted to second (behind Nevada) in revenues. How long will Tea Party proponents continue to ignore gambling’s clash with Christian principles?
Camelot has agreed to a Friday deadline for Gov. Corbett to reveal his next move. Camelot should be back in London by tea time that day.
If not, the noose gets tighter around Tom Corbett’s political neck.
