Connecticut's two Indian tribes are warning legislators that Governor M. Jodi Rell's plan to have the state lottery offer keno may violate the state's compact with the tribes, putting its share of slot machine revenues at risk.

"It's an awfully risky proposition moving forward with the game in such an unsettled area," said John Meskill, director of
the Mohegan Tribal Gaming Commission, before members of the General Assembly's Public Safety Committee.

Under the terms of the compact, the Mohegans and Mashantucket Pequots pay 25 percent of their slot revenues to the state-a $400 million annual windfall. According to the Associated Press, an attorney for the Mashantucket Pequots said the tribes won't be obligated to pay that money if anyone else in the state, including the Connecticut Lottery Corp., is permitted to operate similar games.

"If keno is a commercial casino game, then the payments no longer have to be made," said tribal attorney Jackson King.

Rell suggested keno as a way to raise $60 million per year for the state. She hoped to instantly raise $400 million to help close a $1.3 billion state budget gap, by borrowing against future keno revenues.

Chuck Bunnell, chief of staff for the Mohegan tribe, told the Hartford Courant his tribal council "would be deeply concerned about 600 to 1,000 gaming parlors opening up around the state of Connecticut." Bunnell said it would be perceived by the tribes as a "violation of an agreement that was entered into in good faith."

Anne M. Noble, president and CEO of the Connecticut Lottery, said keno "is one of the oldest games of chance," dating back to the third century in China. "Keno is fun. Keno is easy to play. It's played no differently than any of our other draw games." She added that keno is nothing like slot machines and casino-style games, and thus poses no competition for the tribes.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.