The NDP government of Nova Scotia has turned off the switch on a controversial electronic game introduced in the province last March 2009. Finance Minister Graham Steele announced in a statement before the legislature on September 21st, 2009 that electronic keno would be discontinued in about one hundred eighty restaurants pubs and restaurants in Nova Scotia by October 22nd, 2009.
Steele said that even on its own terms, the game has not been a success. He said that revenue has dropped eighty percent below predictions; with the result that electronic keno is actually losing money instead of earning revenue. Steele stated that he made the decision to stop the game after meeting with stakeholders.
The Finance Minister stated that it will cost a total of $3.4 million to stop the game, which will come out of general gaming revenues paid to Nova Scotia. The write-off includes the cost of draw equipment, computer software and hardware, installation expenses and lottery retail terminals. Keno was introduced in the area despite the criticism from the former Tory government of Rodney MacDonald.
Critics argued that electronic keno, which permits gamers to choose their own numbers and monitor results on video screens, would further hurt problem gamers. Even the Nova Scotia Gaming Foundation-the government's gaming arm-sounded the alarm, citing a 2007 gaming study that found daily versions of the game of keno, known as Bucko and Salsa Bingo, were the 2nd most likely category for gaming problems after video lottery machines.
Steele said that the questions that were raised at that time about possibly enhancing addictive gaming behavior have not been answered. Steele added that the game is also not earning enough money so it made the decision of stopping the game very easy. The previous Tory government had expected to earn a total of $2 to $3 million annually on electronic keno.
Nova Scotia Gaming Corporation spokesperson Robyn McIsaac stated the latest results on figures, covering the period from April 1st to August 31st, showed that the game experienced a net loss of $432,000. McIsaac said that they have been working with Finance Minister Steele on the analysis of the game and they support his decision. The decision of the government was also applauded by the Liberals, who were against electronic keno from the start.
Gaming critic Leo Glavine stated that it is very important that problem gamers have one less chance to be tempted despite the total cost of the pullout. But Cecil Clarke, a Conservative critic, questioned the wisdom of stopping the game at a time when Nova Scotia is facing a $590 million budget deficit.
Steele said that Clarke's criticism was an odd one given that electronic keno is not making any money for the province. He added that this was a mistake made by the previous government and they have decided to stop it before they incur bigger human and financial cost.
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John Sullivan
