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establish Keno lotteries in various communities within the State
of Nebraska.
Keno is a lottery game that originated in China in
approximately 1000 B.C. In each Keno lottery, there are 80
numbers available. A Keno player selects up to 20 numbers on a
Keno card and wages from $1 to $100 per lottery. Using approved
lottery equipment, the winning numbers are selected randomly.
Payoffs to Keno players are based on mathematical probabilities.
Under Nebraska’s County and City Lottery Act, Neb. Rev.
Stat. secs. 9-601 to 9-653 (1997), Keno lotteries are to be
conducted for “community betterment purposes.” Under that
statutory authority, several Nebraska municipalities contracted
with Lucky for Lucky to establish and to operate and conduct Keno
lotteries within the municipalities. In these contracts, Lucky
repeatedly is referred to as the entity responsible for all
aspects of the lottery. For example, the contracts state that
“[Lucky] shall provide on a turnkey basis at no cost to the
[municipality] the design, production, installation, and
operation of a keno type lottery system.”
In return, Lucky agreed to allocate and to distribute the
Keno lottery proceeds as follows:
To Percentage
Lottery Players 74
Lucky 14
Municipality 10
State of Nebraska as Lottery Tax 2
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Last modified: May 25, 2011