An initiative petition in currently underway to authorize video keno in Nebraska.
Nebraskans for Video Keno, a group sponsored by local keno operators, has been circulating petitions and gathering signatures since March 2006. They are hoping to include video keno on the ballot for the November 7, 2006 vote.
The group is a grassroots organization and claims to have no involvement with casinos.
The authorization of video keno will bear no changes on the constitution according to the group. In 2004, a similar initiative was proposed but was voted down. In that initiative, casinos and slot machines would have been authorized alongside with video keno, which would have involved constitutional changes. The new initiative would only be for video keno, an offshoot of live keno, a game that is already allowed in Nebraska.
According to the sponsors, this measure is good for local communities and for local businesses offering keno. Similarly, they say that this initiative gives an additional option to raise community betterment revenue. Communities will have the choice whether to participate in this form of revenue generation.
By ‘community betterment’ the sponsors cite examples of community improvements that are owed to taxes from keno games. According to them, keno has provided funding for Omaha’s Zoo and the Qwest Center. Keno has also funded parks, libraries, sports facilities, public safety, street and sidewalk improvements, and a wide variety of important public projects in communities across Nebraska. Keno revenue can also be used for tax relief.
The initiative does not change the methods for authorizing keno. If a community already has authorized live keno, a video keno is also allowed. If a community does not have keno yet, it will require an authorizing election and a state license, same as the existing practice.
In terms of betting limits, the initiative does not change wagering and prize limits. Wagering and prize limits are still to be set by the state and the local community. The initiative also doesn’t change limits on the number of keno machines. The number and location of keno machines is determined by local control.
The keno machines would be taxed in the following way: 27% stays with the City for community betterment. 9% goes to the State for regulation and gamblers assistance. This is the same tax plan approved by voters in 2004.
The same entities that currently regulate keno – The Nebraska Department of Revenue and the community – will still retain regulatory powers.
2006-07-09
John M. Thorpe
