Pa. Lotto Privatization Is Unconstitutional, AG Says

Law360, Philadelphia (February 14, 2013, 4:18 PM EST) -- Pennsylvania Attorney General Kathleen Kane dealt a major blow to the governor’s efforts to privatize management of the state lottery Thursday, determining that the proposed contract with Camelot Management Service LLC violated the state’s Constitution.

As attorney general, Kane holds statutory power to review the “form and legality” of the deal, in which Camelot agreed to put forward upward of $200 million to hedge against $34 billion worth of profit commitments promised to the state over the course of the 20-year contract.

“The Office of Attorney...
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