Cost of Pa.'s Search for A Lottery Partner Rises to $1.3M - News : News
add_action( "wp_ajax_nopriv_setPostViews", 'setPostViews' ); add_action( "wp_ajax_setPostViews", 'setPostViews' );
  • 3 minutes read
Published on
Update on

For quite some time now, the Keystone State’s lottery has been searching for a partner that will serve both its games and gaming systems over the next decade. This search for partners has been both wildly controvertible and also quite costly.

The cost can somehow be justified since it is reportedly going to pay at least $1 billion over the entire decade within which the deal will be in place. This is, in fact, one of the state’s most lucrative long-term deals and there is a chance it could be subject to a two to four-year extension when the 10-year period comes to an end.

While it can be argued that the cost is an unavoidable expense, it would certainly not be that high (over $1.3 million) if the issue was not as contentious as it has proven to be. Two firms, Scientific Games and International Gaming Technology, have applied for the 10-year lottery servicing contracts and they have been at loggerheads for over a year. Each of the companies has even gone as far as tarnishing the names of the other through sponsored lobbying. By doing so, each of them is hoping to have better chances of being awarded the contracted by the Pennsylvania Lottery.

Burdening the Lottery Fund

As mentioned earlier, the lottery has spent over $1.3 million in its search – most of it has been used to pay consultants who are helping with the procurement. But where is this money coming from?

Well, all of it has been paid out from Pennsylvania’s Lottery Fund which is very concerning especially because money in that fund is meant to be used for support services in the state. These services range from property tax and rent rebates, in-home services, and low-cost subscriptions among others.

Unexpected Costs

According to the state lottery, they never anticipated spending as much as they have in their search for a partner. In fact, the lottery’s officials expected to only solicit for bids one time, but they eventually ended up doing it a second time.

A whopping $858,900 was spent during the first round – this was to pay for the services that were offered by Gaming Laboratories International, a consulting firm based in New Jersey. IGT disputed that round and the state opted to cancel the solicitation.

The second bid solicitation involved Treya Partners, a consulting firm that is based in San Francisco. So far, the cost of the firm’s services has added up to $487,500 and this amount is probably going to grow as the lottery is still using its services as they review and evaluate all of the bid requests responses from interested companies.

Latest Headlines

Pennsylvania Casinos Begin Closure Due to Coronavirus

As the recent coronavirus outbreak continues to spread across the globe, the United States is beginning to feel the pinch. A number of changes have already been implemented in a bid to deal with the issue. In Pennsylvania, one of the ways that are being used to combat the spread of the virus is the […]

Caesars Finally Launches Online Sportsbook in Pennsylvania

The Keystone State’s blossoming sports betting industry has welcomed yet another operator. After a very long wait, Caesars Entertainment, one of the most popular gaming brands on the planet, will be officially launching an online sportsbook after the soft-launch phase elapses. Caesars Online Sportsbook, the new digital sportsbook, launched its testing phase on March 10. […]

How to Keep the Betting Action Going in the NFL Offseason

The end of February marked the end of the NFL season and for the fans of the league, this marked the beginning of a rather dull offseason period. Now the huge gap between the NFL seasons can be quite frustrating because, aside from the games, the fans also miss out on other exciting stuff such […]

PGCB Recognizes March as Gambling Awareness Month

The Pennsylvania Gaming Control Board (PGCB) is now intensifying its efforts to promote gambling awareness in the Keystone State in a bid to protect its residents from gambling-related harm. By declaring March as the Problem Gambling Awareness Month, the state gaming regulator hopes to clean up its gambling industry and make it safer for both […]

Pennsylvania State Police Seize Dozens of ‘Illegal’ Gambling Machines

Lawmakers in the Keystone State are still in the process of reviewing the legality of “skill games” that have been rapidly spreading across the state. Their spread is so significant that the state lottery has raised concerns citing the fact that these machines are cutting into Pennsylvania’s ability to bring in revenue which is mostly […]

Similar Stories in Gambling

Betfred and Scientific Games to Offer Sports Betting at Wind Creek Casino

Scientific Games Corporation and Betfred have recently announced that they have partnered in order to venture into the Keystone State’s rapidly growing and very lucrative sports betting market. The two companies have plans to offer both retail and online sports betting services the Wind Creek Casino, one of the state’s leading gambling operators. Launching in […]

West Virginia Speeds Up Online Gaming Plans After Benchmarking in Pa.

It goes without saying that Pennsylvania is currently one of the most lucrative gambling destinations in the United States. In fact, it has grown so immensely that other states have begun to see it as one of the best benchmarks for their gaming industries. The latest state to consult with the Keystone State is West […]

State Auditor General to Audit Pennsylvania Lottery

On Wednesday, November 4, Pennsylvania state Auditor General Eugene DePasquale announced that his office would be launching a performance audit on the state’s Revenue Department and the Pennsylvania Lottery. According to DePasquale, the performance audit will be laying some special emphasis on the study of the state-run lottery’s measures when it comes to protecting itself […]

Pa. Lottery’s Xpress Sports Considering Changing Game Options

It goes without saying that gambling in the Keystone State is doing quite well. The Lottery is one of the sectors that is still shining which is not very surprising especially considering the fact that it has existed longer than most other forms of gambling in the state. Even so, it continues to post record […]