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Council considers lowering keno revenue share to boost operator payouts and local play
Summary
City staff reported a request from the keno operator and bar owner to reduce the city's share from 9.25% to 7% to improve payouts and increase play; council directed staff to draft a resolution and check state statute compliance before returning with specifics.
Council members considered a proposal to reduce the city's share of keno gross proceeds from 9.25% to 7% to allow higher payouts to players and greater revenue for the operator and host bar. Kelly said the keno account currently holds nearly $200,000 and that reducing the city share to 7% would lower monthly city receipts by roughly $1,000; staff reported comparable municipal rates ranging from 5% to 9%.
Kelly said the operator (Zellinger Keno) and Hickman Bar & Grill proposed the 7% rate to improve local payouts and attract more play. "If you reduce it to 7%, the loss is about $1,000 a month," Kelly said, adding the city could try a temporary two-year change and revert if needed. Council members asked staff to research statutory constraints and local comparisons and to return with a draft resolution.
