The experiment of the province of Nova Scotia regarding the game of electronic keno is over. Nova Scotia Finance Minister Graham Steele publicly announced on September 21st, 2009 that bars and restaurants that currently offers the game are getting a month's notice that Nova Scotia is cancelling the game.
The province will write-off a total of $3.4 million investment in keno equipment. Steele said that electronic keno has not been producing as much revenue as expected. He said that Nova Scotia has lost a substantial amount of money on keno but he was not certain how much. He added that they are going to cut their losses before the problem gets any bigger.
The game will end by October 22nd, 2009. Electronic keno launched to about one hundred eighty businesses in March 2009 with the hope of producing about $2 million annually for the province. But the Nova Scotia Gaming Corporation, the province's gaming arm, reported that revenue from the game is about eighty percent below expectations.
A study released earlier this month showed that keno earned $700,000 in its first 4 months of operation, with $400,000 paid out in total prizes to gamers and $40,000 to game retailers.
There were also operating expenses that the corporation did not take into consideration. Steele said that the Nova Scotia gaming corporation was looking at spending more cash to aggressively advertise the game but he is not permitting that to happen Steele opposed the launched of keno while he is in the Opposition in the spring.
After becoming Finance Minister, he stated that he would consult with residents on the game. Steele said that electronic keno is simply not working and they have to take some actions to solve the matter. Tory MLA Cecil Clarke said that he suspected that Steele had made up his mind regarding the future of the game even before doing his public consultation.
Clarke said that what he is concerned about is a $3.5 million dolalrs expense without enough study to come to a good decision. Liberal gaming critic Leo Glavine supported Steele's decision. The Liberals had opposed keno since February 2009.
Glavine said that they are happy about the Finance Minister's decision since they are against the implementation of the game from the start.
Steele said that there is no compensation due to the businesses that have electronic keno. He said that their deal with the Atlantic Lottery Corporation states that the lottery can pull the plug on any lottery games at any given time.
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Louis Blechdom
