Nebraska Consider Keno Expansion

Keno operators asked Nebraska state senators to consider allowing keno play on smartphones and other mobile devices and to drop the 5-minute interval between games. They said the moves would generate additional funds for "community betterment" without adding to residents' tax burdens. Keno raised $232.6 million statewide, up 6.9 percent, in fiscal 2015.

Nebraska state senators, members of a legislative study committee, recently heard a plea from keno lottery operators to consider authorizing keno play on smartphones and other mobile devices within licensed areas in Nebraska. Bill Harvey, an attorney for big Red Keno, said the move would allow keno to provide more money for “community betterment” statewide. As a result, Harvey said, citizens would not be burdened with paying higher property taxes.

Harvey said allowing non-cash, electronic payments and reducing the required 5-minute time interval between games also could help boost keno activity.

According to Nebraska Department of Revenue figures, keno generated $232.6 million statewide, up 6.9 percent for fiscal 2015 over the previous fiscal year. Keno was approved in Nebraska the early 1990s.

State Senator Tyson Larson said he has not decided if he will introduce keno legislation next year. Last year a bill to eliminate the 5-minute interval died during the legislative session. “You need to be able to build consensus but it would be huge for cities and counties” if keno activity increased, he said. Omaha City Council President Ben Gray said “it would benefit us to a huge extent if we shorten the five-minute time limit” and raise more revenue.

Several city officials told committee members their communities have benefited from keno. La Vista Mayor Douglas Kindig said, “It’s a vital source of funding.” He said La Vista has used keno proceeds for improvements at its city hall, community center, sports fields and walking trails and to fund downtown beautification. He noted many of these projects otherwise would have imposed a burden on taxpayers without keno funds.

In Columbus, keno generates about $500,000 in annual revenue, which is spent on city parks. In Lincoln, keno proceeds have been allocated to parks, libraries, swimming pools and other recreational activities.

Harvey noted keno lottery activity in Nebraska is authorized by community voters. David Geier, executive director of the state’s gamblers assistance program, pointed out “it’s predictable that rates of gambling disorder will increase” if keno is allowed on mobile devices and the 5-minute interval is eliminated.