New lottery game gives Holden hope

JEFFERSON CITY, Mo. -- The Missouri Lottery Commission wasted little time in approving a new gambling game that Gov. Bob Holden hopes will boost education funding.

The commission on Thursday unanimously approved Quick Draw Lotto, an online keno game. Missourians could be making keno bets in local bars and restaurants by June 1.

Brian Long, the state budget director, said earlier this week that the new game could raise $20.8 million for education.

Holden proposed a new lottery game during his State of the State speech on Wednesday as one way to fully fund the requested increase in the formula that distributes money to public elementary and secondary schools.

Lottery director Jim Scroggins said the new game could generate $79 million in sales in one year. The money not earmarked for education would go back to players as prizes, to retailers as commissions and to the state for administrative costs.

Quick Draw Lotto players will be able to select up to 10 numbers from a field of 80. A machine then selects 20 winning numbers that are displayed on a television screen. Players are paid based on their number of correct guesses.

The Missouri game will accept wagers of $1 to $20 and pay jackpots ranging from $1 to $100,000 on a $1 bet. Players could bet on new numbers every five minutes.

Nine states already offer similar games, including Kansas which has had electronic keno since 1992. In Kansas, there are 298 games a day available at 1,800 retail and convenience stores, plus bars and restaurants. Keno sales in Kansas last year topped $40 million.

Popular game

Scroggins said the Missouri game will be offered only in establishments licensed to sell liquor by the drink. Missouri Lottery games are limited to people age 18 and older.

"The game seems to be most successful and popular in restaurants and other social environments," he said. "There's a lot of kids in and out of convenience stores. It's better in an age-controlled environment."

Scroggins said a side benefit is that keno will boost sales of liquor and food.

On the downside, the lottery's pull-tab game sales in restaurants and bars are expected to be cut in half.

Keith Spare, a drug and gambling addiction counselor in Kansas City, said he was concerned that the game could lead to more people becoming addicted to gambling because "fast games are poison for compulsive gamblers."

Dividing payments

Keno licensees will be paid 5 percent of sales, and the game vendor, Rhode Island-based GTech Holdings Corp., will get 3.5 percent.

After an estimated 26 percent state tax and other expenses are deducted, Scroggins said, the game will return about 60 percent of revenues to players in winnings.

Besides Missouri and Kansas, other states offering electronic keno include California, Georgia, Maryland, Massachusetts, New York, Oregon, Rhode Island and West Virginia.