Rhode Island news

Smoking-ban foes say keno revenue will drop

10:07 AM EST on Tuesday, March 1, 2005

Raymond A. Brooks, the head of a group fighting what it calls inequities in the state's new smoking ban, yesterday said that state officials did not consider the potential loss of keno revenue when they passed the law last year.

State lawmakers permanently exempted Newport Grand and Lincoln Park from the smoking prohibition that takes effect today, saying they feared the impact on the gambling businesses. In the last calendar year, the state's share of video-slot revenues from the two facilities was $232.6 million.

The ban also exempts some class C and D liquor license holders. Brooks, president of the Neighborhood Pub Association of Rhode Island, says that exemption will drive his restaurant and pub -- and many others -- out of business. With those closing, he says, keno sales will drop.

In 2004, almost $91.4 million was wagered on keno and Hot Trax games at bars, restaurants and convenience stores across the state, excluding Lincoln Park and Newport Grand. Of that, the state kept $20.1 million as revenue, according to the Lottery.

The pub association also announced yesterday that it had hired Daniel P. McKiernan and Lauren E. Jones to evaluate the legality of the exemptions in the antismoking law and possibly bring forward a lawsuit against the state.

-- Scott Mayerowitz

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