Pennsylvania Lottery partner search costs over US$1 million
The Pennsylvania Lottery has spent US$1.3 million on consultants in the process to find a new partner for the 10-year servicing contracts.
US.- The Pennsylvania Lottery is considering who will be its new partner. Two companies want to get the lottery servicing contracts (which last 10 years) that would pay around US$1 billion.
However, the process has cost the state body over US$1.3 million so far. The Pennsylvania Lottery has spent such amount on consultants to help with the process.
“These contracts are incredibly valuable,” said Marc Crisafulli, president of Twin River Worldwide Holdings Inc.’s Rhode Island operations. “Once you secure a contract, you can have 10 to 15 years’ worth of highly profitable cash flows. That’s why people go after them so aggressively.”
“The lottery is a critical program in Pennsylvania,” State Auditor General Eugene DePasquale said. “We want to make sure the money goes to seniors. That cost itself is obviously concerning because that money could be better spent helping seniors.”
Increased revenues in Pennsylvania
As the sports betting segment evolves, Pennsylvania gaming revenue thrives on it. According to the Pennsylvania Gaming Control Board (PGCB), it reached US$3.29 billion in the 2018-19 financial year.
Slots still post the most revenue at the 12 casinos, amounting to US$2.38 billion, or a 1.3% increase. Table games posted US$885.6 million (11.1%) and sports betting amounted to US$21.7 million.
