Some reject new Keno in protest
For Keno enthusiasts, it's becoming easier to play the state lottery's popular numbers game. But not if they live in Gloucester or Rockport.
The Massachusetts State Lottery Commission last week introduced Keno-to-Go, a new feature that lets people buy tickets at outlets and check the results on the lottery's website. Until now, the game could be played only in restaurants and bars, where winning numbers are displayed on monitors.
Gloucester and Rockport were among five cities and towns statewide to exercise the right to opt out of allowing sale of Keno-to-Go tickets in their communities.
In Gloucester, city councilors unani mously rejected the new Keno feature to protest what they contend is an unfair formula used by the state to distribute lottery aid.
Council president Bruce H. Tobey, who spearheaded the effort, said the formula is inequitable because it looks primarily at a community's per-capita real estate values and does not take into account per-capita income levels.
He said that formula hurts communities north of Boston and in other areas of the state because "we have relatively high real estate valuations per capita but . . . we have a poorer population than average." He said per-capita income is "a better measurement of the needs of our people and the services that we provide."
Tobey said a reflection of the inequity is the relatively small return Gloucester receives for its lottery revenues. According to lottery commission figures, Gloucester generated $23.2 million in sales in fiscal 2007 and received about $3 million in aid, or about 13 cents for every dollar. Tobey said in more affluent communities, the proportional return is significantly higher.
According to the lottery's figures, Hamilton received 45 cents for every dollar spent on the lottery in fiscal 2007, or $757,377, for $1.7 million in sales. Boxford generated no lottery sales, but received $568,608.
Other communities that received proportionally smaller returns on their lottery sales include Salisbury, which generated $28.9 million and received $786,391 in aid, or about 3 cents on the dollar, and Saugus, which generated $29.9 million and received $2.8 million in aid, or about 9 cents per dollar sold.
Gloucester councilors voiced their protest about the formula in a letter to the lottery commission that served notice of their vote to reject Keno-to-Go. The letter was mailed to other cities and towns and the city's legislative delegation in an effort to spur grass-roots efforts to change the funding formula.
Dan Rosenfeld, director of communications for the lottery commission, said the formula for disbursing aid is set by the Legislature. "We make the money and the Legislature decides how to spend it," he said.
"The point we made to Gloucester was whatever your share of the pie is, we are trying to make the pie bigger," he said. "While we understand where they are coming from, we want to increase the amount of aid available for everyone."
As with the existing keno game, Keno-to-Go players choose a series of numbers to play, with the winning numbers chosen by random computer selection.
Rosenfeld said the commission estimates that once it is fully up and running, Keno-to-Go will generate $100 million in sales, about $20 million of which would go to cities and towns. He said there are no plans to change the rule that will allow even those cities and towns that reject Keno-to-Go to share in that aid.
Rockport selectmen decided to reject Keno-to-Go after several board members spoke against it, according to Selectman Armand D. Aparo.
"I feel gambling is an inappropriate way to fill in shortfalls in a municipal budget," Aparo said. Before voting to allow expanded gambling in town, he added, he wants to see whether the state has increased spending on programs to help problem gamblers as its lottery sales have grown.
Rosenfeld said the deadline for communities to reject Keno-to-Go was April 17, the same day the game began.
The three other communities that opted out of Keno-to-Go are Hull, Northampton, and Dennis, which has indicated it is weighing the matter further. Five communities have been given an extension to decide.
No action was required for communities opting to accept the game, though many took affirmative votes, Rosenfeld said.
Everett Mayor Carlo DeMaria Jr. said there was no discussion in his city about opting out of Keno-to-Go. But he said he finds it unfair that Everett receives so little back in lottery aid compared with what is spent on games in the city. In fiscal 2007, Everett generated $38.1 million and received $4.5 million in aid.
"It not right. It should be based on what a community is spending," he said of the aid formula.
Chelsea City Manager Jay Ash said his city had no objection to Keno-to-Go. He said he was disappointed, however, at the defeat of Governor Deval Patrick's plan to license three casinos.
"It would have been a better way to achieve the same result - that being to derive more revenues from the appetite people have to dispense some of their disposable income on gambling," Ash said.
