Pennsylvania Attorney General Kathleen Kane is rejecting Gov. Tom Corbett's contract to hire a British firm to manage the $3.5 billion Pennsylvania Lottery.
Kane said Thursday that she won't approve the 20- to 30-year contract with Camelot Global Services because it contravenes the state constitution and it's not allowed by law.
The contract's legality is being challenged in court by Democratic lawmakers and the union that represents lottery employees. Corbett can challenge Kane's decision in court.
“I'm deeply disappointed. I don't agree with the attorney general’s analysis and decision, and we will review our legal options, " said Corbett.
Corbett has said he believes Camelot can do a better job than the state in raising lottery profits. Camelot runs the United Kingdom's official lottery.
Democratic lawmakers criticize Corbett as diverting money from programs for the elderly to a foreign firm.
NBC10's Doug Shimell talked to some people who want to see the lottery stay exactly the way it is. "It hit everyone here very hard, between the employees here, the people that come in and buy the lottery and also the state employees that take care of our lottery machines and fill them with tickets," said Mary Beth Halteman, from the Top Star Deli in Milford Twp., Pa.
The governor says by the year 2017, one in four Pennsylvanians will be over the age of 65 and he wants to make sure funding for senior programs can keep up with the growing population.