On July 27th, 2008, Indian gaming interests are very concerned regarding the plan of Governor Arnold Schwarzenegger to offer keno, a bingo like game which was banned in California twelve years ago for violating the state gaming law. According the draft of the lottery plan of Governor Schwarzenegger, he would propose a constitutional amendment that tribes say could override a decision of the California state Supreme Court that dismissed the game.
The lawyer of the United Auburn Tribe in Sacramento, Howard Dickstein said that this attempt by Governor Schwarzenegger has a great effect on tribal revenue and an attempt to dismiss the status quo. Lottery Director Joan Borucki denied that California is trying to legalize keno. She said that the language of the proposal is intended to allow the state lottery to reward fix prizes for small level jackpots in multi-state games like Mega Millions.
The game of keno is similar to the state lottery's Hot Spot game were players decide on how many digits to wager with drawing held every few minutes. But keno featured a more lucrative fixed prized rather than pari-mutuel prizes that are determined by the number of participants.
Under Governor Schwarzenegger's keno plan, which would require approval from the state legislature and voters, upgrading the lottery would match his proposal to fill part of the state's $15.2 billion budget deficit by borrowing against future lottery profit. Schwarzenegger commented that a modified lottery could improve lottery sales in a decade.
The $3 billion program has stagnated and the Lottery Commission has brought down revenue estimates for the year by $275 million. Administration officials commented that they have no plans of breaking a profit sharing agreement which gives Indian casino facilities exclusive rights to slot machines.
Schwarzenegger's spokesperson Aaron McLear said that what they have is only a draft. He added that whatever final version that they will have, the state will not allow keno. According the 2005 California Performance Review, keno earned $8 million per week. Immediately after the 1996 decision, the lottery replaced keno with Hot Spot and sales dropped to $3.3 million per week.
[24-08]
Louis Blechdom
