Arizona’s Governor Doug Ducey is contemplating funding raises for teachers using keno—the problem is that it may violate the state’s tribal compacts with the state’s gaming tribes.
The governor’s proposal, which he hasn’t gone public with, came to light when Capitol Media Services acquired documents showing that Ducey hopes to generate $15 million annually through keno, which would be sponsored by the Arizona Lottery. Keno is just a part of the governor’s funding proposals that he says will raise $270 million a year.
Ducey has promised to raise teacher salaries by 19 percent and restore $371 million in funding being withheld to pay for capital expenditures.
Steven Hart, attorney for the Navajo Nation, warned last week that offering keno would violate the compacts that guarantee exclusivity on casino gaming to the tribes. That would, in turn, threaten the $100 million the tribes pay each year in revenue sharing.
The Arizona Lottery offers Powerball, scratchers and instant games on printed tickets that inform players immediately if they have won. The keno games being considered would be similar to what Connecticut offers. Drawings would be held every four minutes. However, this could violate a law that puts a once-an-hour limit on games and results.
Hart ran the Lottery when the tribal state compact was being negotiated in 2002. He says that at that time it was recognized that electronic games were reserved for the tribes. It is unclear whether keno fits that definition. Whether it would run afoul of the compacts depending on how customers place their betters, whether by paper tickets, interactive terminal or some other method.
Hart says he wants to sell the proposed bill—which would be hard right now since Ducey hasn’t even made public his proposal.
Governor Ducey’s chief counsel, Mike Liburdi says he does not interpret the compacts as prohibiting keno.
The Center for Arizona Policy plans to oppose the plan, whenever the governor gets around to writing it. “Keno is a fast-paced game,” said Cathi Herrod, its president. “It is predatory gambling.” On most other issues Herrod is a close ally of the governor. She says she “made our opposition known” to the governor.”
