Connecticut Keno Could Generate Millions

Lawmakers in Connecticut included $44 million in estimated keno revenue in the state's $40.3 billion budget. The game was approved in 2012 but repealed two years later. The Mohegans and the Mashantucket Pequots are working with state officials to determine how keno revenues will be divided.

Connecticut lawmakers passed a measure allowing keno in 2012, then repealed it in 2014 because no public hearings were held. But now million in estimated keno revenue over the next two fiscal years has been included as part of the state’s .3 billion budget. Casino industry officials and lawmakers expect to launch the games in January.

The legislature did hold a public hearing before putting the keno measure in the controversial state budget, which calls for a $2 billion tax increase. Gian-Carl Casa, Office of Policy and Management spokesman, said, “I don’t know of any effort being made to repeal it.”

OPM and the state’s two Native American tribe, the Mohegans and the Mashantucket Pequots, now are negotiating how keno revenues will be divided. Both tribes give 25 percent of slot revenue to the state. To ease their concerns about implementing keno, in 2013 OPM agreed to give both tribe 12.5 percent of the keno revenue. A similar deal is expected to be negotiated now, said Mohegan Tribe Chief of Staff for Government Affairs Chuck Bunnell.

Mohegan Chairman Kevin Brown said, “The Mohegan Tribe has an excellent government-to-government relationship with the state and meets regularly with state government officials. 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.”

In the meantime, Connecticut Lottery Corporation President and Chief Executive Officer Anne Noble said, “The Lottery was prepared to launch keno two years ago. We look forward to putting this game in the market now. Our players already play keno in Rhode Island, New York and Massachusetts and they will respond favorably to having keno in Connecticut.”

“Our players already play keno in Rhode Island, New York and Massachusetts,” Noble said. “Our players will respond favorably to having keno in Connecticut.”

When it launches, keno will be available at about 2,800 lottery retailers throughout the state, plus another 400-600 coming aboard later, Noble said. She noted the Lottery previously developed the required software and game rules, and retailers know how to run the game, so the launch should go smoothly. Retailers will earn a 5 percent commission on the game. When fully implemented, keno could generate $125-$130 million annually.

Meanwhile, Australia-based Tabcorp recently kicked off a national advertising campaign including broadcast and print ads designed to attract younger players to keno to stop declining performance and player numbers. The campaign, called “Let’s Play,” hopes to overcome keno’s image as an “old fashioned” game. In its most recent quarter, the company’s keno division reported a drop in revenue of 13.8 percent to $34million.

Tabcorp also announced it has introduced a pooled jackpots system to its keno games in New South Wales and Victoria and launched a new website promoting keno in Victoria, Queensland and NSW, featuring new live draw, venue information and real-time results and live jackpots.