KENO NEWS

New keno proposal means millions for state revenue
KENNETH P. VOGEL: the News Tribune

A unbelievable news for Keno Industry. A good proposal to expand the Washington State Lottery's Keno game to every four minutes could generate at least $28 million in tax revenue for the government.

And another $5.5 million for the Rhode Island Company that runs the current once-a-day game. Expanding the state-run keno game is a small element of the House Democrats' $24 billion budget proposal to be released in detail today. The plan could put keno terminals, now located in lottery outlets, in bars and restaurants across the state, similar to a keno game run by Oregon's lottery the extra tax revenue would not make much of a dent in a budget deficit that could approach $3 billion.

But it would mean a nice chunk of change to GTech, the private lottery contractor that runs the game. But new proposal could change the whole keno industry.

According to the Washington State Lottery the company stands to make an estimated $5.5 million in the first two years of four-minute keno. And GTech Corp. wouldn't have to bid on the work since it has an exclusive contract to run all of the lottery's online games, including keno.

"On it's face, (that) just doesn't smell very good," said Richard Davis, president of the Washington Research Council, a fiscally conservative Seattle think tank. "But the larger and most sensitive question is whether the state should even be involved in gambling," he said.

"These type of potential sweetheart deals with monopoly vendors are the result of the state running the (gambling) monopoly."

The state's involvement in the keno plan, contained in House Bill 2213, is one of the main reasons the option is on the table, said state Rep. Steve Conway (D-Tacoma), chairman of the House Commerce and Labor Committee, which will handle the bill.
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