Pennsylvania Lottery Director Resigns

HARRISBURG, Pennsylvania –- (PRESS RELEASE) -- Governor Edward G. Rendell today announced that Edward Mahlman will resign as executive director of the Pennsylvania Lottery, effective Aug. 25. Mahlman is leaving to take a senior marketing position with Philadelphia Newspapers LLC, the parent company of the Philadelphia Inquirer and Daily News.

"Ed Mahlman has rejuvenated the Pennsylvania Lottery," said Governor Rendell. "Under his leadership, sales have increased by over $1 billion in less than four years. The resulting increase in Lottery profits has helped improve the lives of thousands of older Pennsylvanians by making badly needed expansions of the PACE and PACENET prescription assistance programs and the Property Tax/Rent Rebate program possible."

When Mahlman took over the Pennsylvania Lottery in January 2003, sales were less than $2 billion. Less than four years later, sales have broken the $3 billion mark and a decades-long decline in the number of Lottery retailers has been reversed.

"I challenged Ed to run the Lottery like a business and generate the revenue needed to help older Pennsylvanians cope with the rising cost of prescription drugs and property taxes," Governor Rendell said. "He succeeded beyond even my high expectations. Today, the Pennsylvania Lottery is one of the most efficient and fastest growing state lotteries in the country and it's a model for other states."

Mahlman directed the Lottery through a period of unprecedented growth, with sales increasing by more than 10 percent in each of the past four years. Under his watch, the Lottery introduced innovative new games such as Match 6 and Millionaire Raffle, added nearly 1,400 new Lottery retailers and upgraded its marketing efforts - in part through the introduction of Gus, the Second Most Famous Groundhog in Pennsylvania.

"The Pennsylvania Lottery has never been stronger," Mahlman said. "Its products, its policies and, most importantly, its employees and retailers, are poised to continue the Lottery's growth for many years to come."

Mahlman, a life-long Philadelphian, has accepted a position as chief marketing officer for Philadelphia Newspapers. He said the timing was right to accept a new challenge, since his mission with the Lottery has been largely accomplished. He also noted that working for his hometown newspapers will allow him to spend more time with his family.

An interim replacement for Mahlman will be appointed before his resignation becomes effective on Aug. 25.