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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20170&cosponId=22967
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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted: February 17, 2017 11:16 AM
From: Representative William C. Kortz, II
To: All House members
Subject: Keno (former HB 2349)
 
In the near future, I will be re-introducing legislation – former House Bill 2349 – that will authorize the PA lottery to offer Keno in licensed liquor establishments and non-profit organizations throughout Pennsylvania.

As you may know, Keno is categorized as a terminal-based lottery game that is run similar to Match 6 and Cash 5, except that it is played more frequently, with numbers picked randomly at a minimum of every four minutes. It is a game of chance using 80 numbers in which 20 random numbers are drawn. Players may win cash prizes based on how many numbers they match.

Currently authorized in 16 states, including all of Pennsylvania’s surrounding states except New Jersey, Keno games have generated significant revenues for those out-of-state liquor establishments that offer the game and for each state’s Lottery funded programs.

With that in mind, I believe Keno is a much needed source of revenue which could be used to help sustain the senior programs that are currently funded by a diminishing Lottery fund, better enable our local clubs, bars and taverns to increase their revenues and support their local economies while also helping to fill our Budget deficit. Authorization of the game in Pennsylvania is a win/win/win.

In my legislation, Keno would be phased in by allowing a maximum number of 1,000 Keno terminals throughout the state, which would increase in increments each year until the program reached 3,000 Keno terminals in year 5. Based on the success of Keno in surrounding states, Keno revenues in Pennsylvania each year are estimated to be:

Year Terminal Keno Projections PA State Tax Profit Projection
Year 1 1,000 $ 93.5 – 230 Million $ 20 – 54 Million
Year 2 1,500 $ 193 – 354 Million $ 41 – 81 Million
Year 3 2,000 $ 248 – 496 Million $ 53 – 114 Million
Year 4 2,500 $ 306.8 – 650 Million $ 66 – 150 Million
Year 5 3,000 $ 368.7 – 820 Million $ 79 – 188 Million

This legislation is projected to generate between $93-230 million in the first year with a limited rollout. This means that state revenue is projected to be between $20-54 million in the first year. By the fifth year of Keno being phased into use in Pennsylvania, it has been estimated that it will generate between $79-188 million per year for the state.

I hope you will join me in supporting this legislation that will help our local clubs and bars while generating more funding for the Lottery programs that benefit Pennsylvania’s senior citizens.



Introduced as HB1798