Kearney City Council recommends Big Red Keno for new gaming contract

During the Kearney City Council meeting on June 24, 2025, significant discussions centered around the future of the city's Keno operations, particularly the selection of a new operator following the expiration of the current contract. The meeting highlighted the competitive proposals from three applicants: Big Red Keno, Kearney Gaming, and Community First Keno.

City Manager Brenda Jensen provided a detailed overview of the selection process, which began in 2022 due to concerns raised by local bar owners about the existing Keno operations. The city council had previously decided not to renew the current operator's contract, prompting a request for proposals (RFP) issued in April 2025. After reviewing submissions and conducting interviews, the committee recommended Big Red Keno, which scored the highest based on criteria such as uniqueness, experience, and revenue guarantees.

Big Red Keno's proposal included a commitment to provide the city with an 8.75% revenue share, surpassing the current minimum of 5%. Additionally, they plan to introduce a Keno app, enhancing player engagement and potentially increasing revenue. The proposal also included a $200,000 contribution to the community betterment fund, which was noted as a positive aspect, although it did not directly influence the committee's scoring.

In contrast, representatives from Community First Keno argued for a dual-operator model, suggesting that having multiple Keno operators could foster competition and ultimately benefit the city financially. They emphasized the importance of local ownership and the potential negative impact of an exclusive contract with an out-of-town operator on local bar owners. Community First proposed maintaining a live ball draw at a popular local bar, which they argued would help sustain Keno revenue.

Kearney Gaming, the current operator, expressed concerns about the short notice given for the meeting and the potential disruption to Keno operations. They highlighted their long-standing relationship with the city and the investments made in local gaming infrastructure.

The council's decision on the Keno operator is poised to have significant implications for local businesses and community revenue. With the current contract ending on August 13, 2025, the council faces the challenge of ensuring a smooth transition to a new operator while considering the diverse perspectives presented during the meeting. The discussions underscored the importance of balancing competitive interests with community needs as Kearney moves forward in its Keno operations.