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    Thursday, April 18, 2024

    Keno still a bad bet

    Faced with declining state revenues, some lawmakers once again are proposing the introduction of keno into the mix of lotteries and casino gambling, and once again this newspaper thinks this would be a bad bet.

    There's no question that Connecticut must generate more income to avoid cutting services, laying off employees and/or raising taxes, but upping the ante on games of chance historically penalizes most those who can afford it least. Though people certainly can choose whether to buy a lottery or keno ticket, these wagers often constitute, in effect, a tax on the poor, for which everybody eventually winds up paying a price.

    Leglislation introduced last week by the General Assembly's Finance, Revenue and Bonding Committee initially would authorize the sale of keno tickets at the 3,000 retailers that sell lottery tickets, and additionally, a few months later at hundreds of bars and restaurants across Connecticut. Unlike the lottery, which can produce instant winnings on scratch-off games or from nightly drawings, keno relies on computerized number drawings every four minutes — potentially feeding into an addictive dynamic that can lead to problem gambling.

    Typical keno payouts are between $20 and $60, and the Connecticut State Lottery, which under the proposed law would run the operation, projects the new form of gambling could provide $25 million the first year, $50 million the second year and $70 million annually from then on.

    A bill calling on the lottery to introduce keno was hastily approved near the end of the legislature's 2013 session, but lawmakers wisely repealed the legislation during the following session when they had time to consider its negative ramifications.

    The new proposal has grown out of a push to authorize additional casinos operated by the Mashantucket Pequot and Mohegan tribes that own Foxwoods and Mohegan Sun, respectively — both facing the threat of new casinos in Massachusetts and other nearby states. Complex formulas granting the tribes a percentage of the keno revenues in exchange for giving up some of their exclusive gambling rights could be part of any new law.

    This newspaper has urged lawmakers to hold off on any casino-expansion legislation until they have had time to evaluate potential pitfalls vs. benefits, and likewise we advise them to put keno on a back burner. The Finance, Revenue and Bonding Committee plans to conduct a public hearing on keno next Wednesday, and we expect others will join the opposition.

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