{"id":382137,"date":"2010-03-02T11:58:12","date_gmt":"2010-03-02T16:58:12","guid":{"rendered":"tag:blogs.courant.com,2010:\/capitol_watch\/\/9.72815"},"modified":"2010-03-02T18:45:13","modified_gmt":"2010-03-02T23:45:13","slug":"keno-rell-pushing-controversial-proposal-believes-would-not-violate-compact-with-indian-casinos-that-offer-keno","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/382137","title":{"rendered":"Keno: Rell Pushing Controversial Proposal; Believes Would Not Violate Compact With Indian Casinos That Offer Keno"},"content":{"rendered":"

\"keno.jpg\"<\/span><\/p>\n

Faced with strong skepticism from the Democrat-controlled legislature, the Rell administration started talks last week with Connecticut’s two Indian tribes so that the state can legalize keno – a gambling game that is currently offered in the casinos.<\/p>\n

Gov. M. Jodi Rell believes that keno is a lottery-style game and that the state’s quasi-public lottery corporation can begin the game without approval by the legislature in the same way that it can start other lottery games. Officials said keno is not a casino-style game and would not violate the state’s compact with the tribes.<\/p>\n

Representatives of the casinos admitted that the keno games would become a form of competition if the state moves forward with its plan for installing the games in 600 to 1,000 bars, restaurants, and taverns across the state. Those retailers would also be asked to sell Powerball and all other lottery tickets.<\/p>\n

“I can tell you that I think the [tribal] council would be deeply concerned about 600 to 1,000 gaming parlors opening up around the state of Connecticut – as a violation of an agreement that was entered into in good faith,” said Chuck Bunnell, chief of staff for the Mohegan tribe that runs the Mohegan Sun casino.<\/p>\n

The federal regulatory body that oversees casinos – the National Indian Gaming Commission – has ruled keno as a casino game, he said.<\/p>\n

On the fiscal side, Rell is proposing the controversial idea so that the state could receive an estimated $60 million per year to close budget deficits in the future.<\/p>\n

“We think the $60 million number is a reasonable projection,” said Rell’s budget director, Robert Genuario. The profits would be about 20 to 25 percent to the state’s general fund.<\/p>\n

The estimate that the state could generate $60 million per year from keno – a bingo-type game – is based on an average of surrounding states, as well as Maryland. The administration is comfortable that the number is not inflated.<\/p>\n

“While the administration believes that no new legislation is necessary … that is not a statement that the administration or the Connecticut Lottery Corporation would implement keno in the absence of legislative approval,” Genuario told the legislature’s public safety committee in Hartford. “This is being presented to the legislature as a whole as part of the mandate to provide $1.3 billion in securitization.”<\/p>\n

The Rell administration “has enjoyed a very positive relationship with both of our tribes,” Genuario said.<\/p>\n

Rep. Stephen Dargan, co-chairman of the legislature’s public safety committee that oversees gambling, said he is concerned about the $377 million that the two tribes have contributed to the state in the current fiscal year in exchange for the right to run slot machines.<\/p>\n

By comparison, the lottery currently generates $283 million annually for the state’s general fund from the profits from a wide variety of games, including Classic Lotto. The record amount that was contributed to the state was $286 million in 2006, and the number dipped slightly because of the economy.<\/p>\n

“To the best of my knowledge, the administration has not reached out to either of the two tribes” since last summer, Dargan said.<\/p>\n

“We began our discussions with the tribe last week,” Genuario responded. <\/p>\n

He added, “Our position is this is consistent with the state’s rights under the compact. … Their position is the opposite. That shouldn’t surprise anybody. … It is important that we have those discussions. … Those are legitimate concerns. We’re not going to resolve them here today.”<\/p>\n

Anne M. Noble, president and CEO of the quasi-public Connecticut Lottery Corporation since 2008, said the lottery has returned $7 billion to the state since 1972 and the winners have received more than $11 billion through the years.<\/p>\n

“Keno is one of the oldest games of chance,” she said, saying it dates back to the third century in China. “Keno is fun. Keno is easy to play. … It’s played no differently than any of our other draw games.”<\/p>\n

Noble said that keno is usually played in restaurants and “pouring establishments” – which are better known as bars and taverns. Currently, the lottery is operated through a system of 2,700 retailers in 169 cities and towns. It would be offered in 600 to 1,000 pouring establishments and fraternal organizations like an American legion post, Noble said. The keno retailers would be asked to also sell Powerball tickets and all other lottery tickets and instant tickets. Currently, there are about 40 different instant games and more than five “draw” games in which winning numbers are picked.<\/p>\n

The lottery generates almost $1 billion per year, and $283 million was transferred to the state. Only $1.9 million of the lottery revenue was transferred for problem gambling. Roughly 1.6 percent of the population is a problem gambler, but the national rate is closer to 4 percent, Noble said.<\/p>\n

The profits on the “draw” games are currently about 40 percent, while the profits on keno would be 20 to 25 percent, she said.<\/p>\n

A computer selects the winning numbers in keno, and those numbers are broadcast on television screens. A typical wager is usually $1, but that can vary.<\/p>\n

“The Connecticut lottery would not offer keno through video lottery terminals,” Noble said, adding that the game is nothing like slot machines and casino-style games.<\/p>\n

For the past three years, the lottery’s revenues have been somewhat flat – and the lottery is impacted by the weak economy, officials said.<\/p>\n

Keno is not expected to hurt the sales of the existing lottery games, Noble said.<\/p>\n

“Most studies show that middle-income America plays the lottery,” Noble said when asked about the demographics of the players. “It’s a broad cross section of people.”<\/p>\n

Rep. Linda Orange, a Colchester Democrat, greeted Genuario at the start of her questioning, and they initially exchanged pleasantries.<\/p>\n

“I don’t think you’re going to like me for long, Bob,” Orange said, adding that the state cannot “game our way out of a fiscal crisis.”<\/p>\n

Like other Democrats, Orange is concerned about problem gambling and people seeking a fortune because they have a dollar and a dream.<\/p>\n

“They’re not going to win. You and I know they’re not going to win,” Orange said.<\/p>\n

“Nobody is suggesting we are going to game our way out of the fiscal crisis,” Genuario responded. “This is a small piece of the puzzle. … I share your concern about problem gamblers.”<\/p>\n

Rep. Steve Mikutel, a conservative Democrat, noted that he voted against the state budget and did not agree with the efforts to fill a hole of $1.3 billion in the next fiscal year through securitization – which is essentially selling bonds that are backed by certain revenues streams, such as keno.<\/p>\n

“I don’t have a problem with gambling. People are going to gamble any way,” said Rep. Ernie Hewett, a New London Democrat who said that citizens in the South will drive for miles for alcohol if they live in “dry” counties. “I don’t gamble myself. I quit gambling long years ago. If we come up with an agreement with the tribes, I say put one on every corner.”<\/p>\n

Rep. Charles “Don” Clemons said he is “on the fence” on whether to approve keno. <\/p>\n

“I see a lot of low-income folks, hoping and wishing” that they can win the lottery, he said.<\/p>\n

“We don’t want people to think of gambling as a way out of financial difficulty, but that’s what we’re doing as a state with this proposal,” said Sen. Andrea Stillman, a Democrat who co-chairs the committee.<\/p>\n

“The two tribes have been good corporate citizens for the state of Connecticut, and they have given a lot of money to the state,” Dargan said, adding that he was frustrated by the lack of communication between the Rell administration and the tribes regarding keno.<\/p>\n

“The division’s position is that keno is a lottery game,” said Paul Young, executive director of the state’s division of special revenue. “Keno is not listed in either compact. … The division has already authorized keno within the state of Connecticut. … Our position is that lottery would be able to do the same.”<\/p>\n

While the hearing did not lead to any final decisions, the representatives of the tribes said they would be willing to keep an open dialogue with the Rell administration.<\/p>\n

“This is the first time that all the players discussed the issue,” Dargan said. “That’s a first step.”<\/p>\n

In Photo: Outside an adjourned informational meeting on Keno, Mohegan Sun Chief of Staff Chuck Bunnell said that if the State started the game of Keno the tribe would not be bound by the compact that guarantees the state a percentage of slots revenue. <\/b>Courant Photo by Michael McAndrews<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Faced with strong skepticism from the Democrat-controlled legislature, the Rell administration started talks last week with Connecticut’s two Indian tribes so that the state can legalize keno – a gambling game that is currently offered in the casinos. Gov. M. Jodi Rell believes that keno is a lottery-style game and that the state’s quasi-public lottery corporation can begin […]<\/p>\n","protected":false},"author":4001,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-382137","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/382137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4001"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=382137"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/382137\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=382137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=382137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=382137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}