Keno is looking for its second act in Connecticut.
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Keno is looking for its second act in Connecticut.
Two years after the betting game was passed into law and then repealed, state lawmakers have revived Keno as part of their $40.3 billion budget, estimating the game will contribute $44 million to government coffers over the next two fiscal years.
Now, casino industry officials and the state are heading back to the bargaining table to hash out how the potential gaming revenue will be divided, with the hopes of actually getting Keno off the ground by January.
Lawmakers adopted keno two years earlier, but it was repealed in 2014 largely because the game was never given a public hearing.
This year the legislature did hold a public hearing before putting the measure in the state budget, which was controversial for its $2 billion tax increase. Keno, however, didn't draw as much negative attention.
“I don't know of any effort being made to repeal it,” said Gian-Carl Casa, spokesman for the state Office of Policy & Management.
Before keno can be implemented by the Connecticut Lottery Corp. at more than 3,000 retailers across the state, OPM and the state's two Native American tribes must negotiate how the revenues will be divided. As part of their exclusive agreements to operate casino games in the state, the Mohegans and the Mashantucket Pequots give 25 percent of their slot revenues to the state. The tribes have argued that implementing keno would violate the agreement.
To satiate tribes' concerns, OPM agreed in 2013 to give them each 12.5 percent of the keno revenues. A similar deal is expected to be struck this time, said Chuck Bunnell, chief of staff for government affairs for the Mohegan Tribe in Uncasville.
“The Mohegan Tribe has an excellent government-to-government relationship with the State and meets regularly with state government officials,” Mohegan Chairman Kevin Brown said. “We remain willing and available to discuss a mutually beneficial agreement that would allow the state to operate keno as we have in the past.”
Casa said OPM does not have a timeline on when tribal negotiations will be complete.
The Connecticut Lottery Corp. is hopeful the OPM-tribal agreement is completed in time for the quasi-public agency to launch keno in January, said Anne Noble, lottery president & CEO.
“The lottery was prepared to launch keno two years ago,” Noble said. “We look forward to putting this game in the market now.”
Keno will be available at the 2,800 lottery retailers currently operating in the state; the lottery hopes to add another 400-600 retailers over time, Noble said. Retailers will earn a 5 percent commission on the bingo-like game.
Once fully implemented, Noble expects keno to generate $125 million to $300 million annually.
The rollout should go quickly, Noble said, because the lottery already has developed the necessary software and game rules, and retailers are aware of how to run the game.
“Our players already play keno in Rhode Island, New York and Massachusetts,” Noble said. “Our players will respond favorably to having keno in Connecticut.”
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