Massachusetts Lottery officials are concerned about an aggressive new form of lotto gaming taking place in New Hampshire. The Granite State recently legalized online sales, as well as a form of keno.
Michael Sweeney, the Massachusetts State Lottery Commission’s Executive Director, predicted New Hampshire’s decisions will have a major impact on the Massachusetts lottery‘s bottom line.
Sweeney said, “New Hampshire being more aggressive and receiving more empowerment from the state legislature will have an impact on us.”
New Hampshire Online Keno Sales
Keno is the 80-ball Chinese lottery game which typically has one a high house edge. That means players lose more when playing keno than most other forms of gambling, besides weekly lottery drawings.
Fast-draw keno is becoming a controversial style of lotto gaming across the United States. Last month, the New Jersey Lottery came under criticism for offering Quick Draw, a form of keno, which has a drawing every 5 minutes. That’s 226 drawings every day.
Many experts believe computerized keno is a dangerous gaming option, because it combines rapid-fire succession with a high house edge. Players can lose a lot of money in a given session of keno. In fact, they can expect to lose a lot of money — though some win large prizes.
Michael Sweeney Alarmed by NH Online Lotto
Michael Sweeney said New Hampshire’s lottery officials are going to advertise that gamblers in their state will be able to keep more of their winnings than someone in Massachusetts. Massachusetts has a 5.1% state income tax, while New Hampshire has no such income tax.
Speaking of the income tax disparity, Sweeney added, “This is going to be another business pressure that negatively impacts our net sales and our revenue.”
Thomas Shack Calls for Massachusetts Reaction
Massachusetts Comptroller Thomas Shack, who also sits on the lottery commission, compared potential online keno sales to “troops on the borders of Massachusetts“.
Pointing out that Connecticut also legalized keno ticket sales, Shack said New Hampshire’s new form of gambling would be devastating to the Massachusetts State Lottery’s sales.
Thomas Shack also called for Massachusetts lawmakers to create approve similar games for the Bay State. He said, “Connecticut and New Hampshire are ahead of us and now we will need to play catch-up when we get that authority from the legislature.”
New England Gambling Disputes
The New England states have become bitter rivals on the subject of gambling the last few years. Massachusetts in particular has engaged in a series of border disputes with its neighbors. After Rhode Island passed a law which turned Twin Island Casino into a slots parlor, Massachusetts officials allowed the Penn National’s Plainridge Racetrack in Plainville become a racino, too.
When Massachusetts approved the MGM Springfield development, it caused Connecticut officials to pass a bill allowing for a joint venture between the tribes which own Mohegan Sun and Foxwoods. The East Windsor casino in the Hartford area was designed to keep Connecticut gamblers (and dollars) in the state. Massachusetts officials complaining about the New Hampshire lottery centers on the same issue — capital flight and trying to maintain brand loyalty to in-state gaming operations.
How Quick-Pick Keno Is Dangerous
The escalation in lottery sales represented by the keno-style gaming is understandable, but it threatens to spark a reaction from the gambling public. If states across the US begin to legalize online keno and offer fast, low payback game that Massachusetts officials fear, then it is going to create a wave of problem gambling stories. Many compulsive gamblers get help and quietly dig themselves out of debt. Some struggle quietly in the dark, managing their addiction while dealing with personal finance issues.
Others deal with bankruptcy, counseling, divorce, depression, crime, and suicide. Occasionally, one of these stories gets into the public and forces a reaction. Keno sales will drive up the number of cases this involves.
Deborah Goldberg on Online Lottery Sales
Some state lottery officials sound like they are addicted to the lotto revenues. New Hampshire State Treasurer Deborah Goldberg said that keno gaming is essential to maintaining a healthy stream of revenues from the lottery. Goldberg also vented frustration that the legislature would not approve online lotto sales, which she sees as a key to growth.
Goldberg said about the lack of movement on online lottery sales, “I think the thing they have to really look at is what drove the profit last year. Keno, for the last two years, we’ve beefed up sales and it has helped carry the ball. To have (New Hampshire) be able to do a double hit — which is online and Keno — and we’re sitting here like dead ducks, I feel like.”
