By Dick Miller
WE.CONNECT.DOTS: Other than current governor Republican Tom Corbett and former governor Democrat Ed Rendell, who wants to privatize the Pennsylvania lottery?
The only other “enthusiasts” appear to be businesses and consultants who would gain by such an action. Rendell consults with Britain’s Camelot Global Services LLC, the sole vendor that, in Corbett’s opinion, could competently replace state employees and run the lottery.
Corbett is so convinced that Camelot Global can run it better than anyone else he tried to hand the Brits a no-bid contract whereby the firm would handle about $100 billion in sales over the next two decades.
At best, Corbett is looking for a boost at next year’s governor election where he could say he did it to raise more funds for senior citizens’ programs. To be so helpful to the elderly, Corbett was prepared to ignore a legislature controlled by his own party. He attempted to bypass the state constitution, so claims Kathleen Kane, first Democrat to get elected Attorney General, just last year.
Kane refused to sign the contract. Corbett decided to come up with a procedure more acceptable to other government partners. He remains wedded to Camelot, however. In July Corbett’s staff negotiated the seventh extension of Camelot’s offer.
Corbett hopes to restructure the deal inch-by-inch. For example, Kane had ruled that the introduction of keno expands gambling and must be approved by the legislature. Corbett is talking about multiple keno locations in bars, restaurants and convenient stores. Eventually, he would add online gambling.
Keno would be a major boost in revenue for the lottery, particularly with 5-10,000 locations statewide. The Post-Gazette describes keno as a game in which players pick up to 10 numbers, with hopes of matching them to 20 numbers between 1 and 80 chosen randomly by a computer. The Pittsburgh newspaper claims keno has among the worst odds for players and best for the house.
State regulated casinos have yet to be heard from. Gaming corporations paid $50 million as a one-time fee for a license then pay taxes on profits that exceed half of net revenue. Both extractions are the highest in the nation.
Keno allowed on every street corner would lower the value of the casino licenses.
Thanks to increased competition from surrounding states, tax revenue from casinos appears to be leveling off.
Even in Texas, Tea Party lawmakers claim government lotteries are a tax on the poor. Temporarily, these conservative Republican lawmakers and some liberal Democrats banded together and refused to re-authorize the Texas lottery.
Then, as the AP described the episode, the Texas House recessed for a “hastily called lunch.” When these temporarily moral lawmakers could not think of another way in which to raise $2 billion annually for education, they withdrew their opposition.
Texas is one of the few states with no personal income tax. Apparently Tea Party lawmakers believe breaking open that source of taxation is too much to pay to shelter their poor.
Someone may have also reminded them that lotteries contribute to our enormous shift of wealth. New millionaires are created, but certainly at the expense of millions of other people. The Texas lottery was re-authorized this year.
Pennsylvania is not too much different. Republicans would have us continue to believe they are for everything moral. The rules don’t apply however when they can make life difficult for mostly Democrat poor.
Corbett’s hopes for a privatized lottery dimmed last month when it was announced PA lottery sales and profits had set a new record, for the second year in a row. Still, Corbett believes sales and profits should be higher to take care of more old people. His new state budget provides an additional $50 million for senior citizen programs, as if Camelot is in charge.
BOTTOM LINE: Corbett needs some bragging rights for next year’s campaign. So much so that he tries lottery privatization, including keno and online gaming, with no help from his own legislators.
