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March 18, 2020

After bar and restaurant closures, CT Lottery anticipates major Keno hit

HBJ Photo | Matt Pilon Gregory Smith, CEO of the Connecticut Lottery Corp.
By Matt Pilon

The Connecticut Lottery Corp., which provided $370 million to the state’s coffers last year, is working to assess what the coronavirus means for its financial picture and operations.

Lottery CEO Gregory Smith said Tuesday that he is expecting a 24% decrease in Keno sales effective immediately, which amounts to approximately $700,000 per week.

That’s the percentage of Keno sales that occur in bars, restaurants and other establishments that are now closed by order of Gov. Ned Lamont in an effort to hinder further spread of the coronavirus that has infected 68 Connecticut residents and counting (restaurants are still allowed to offer take-out service).

From Friday to Tuesday, Keno sales fell by 4% to 8% from normal levels, the lottery said.

The pandemic threatens to dampen what has been an otherwise fast-growing revenue generator. Last year, Keno became the second highest grossing game at the Connecticut Lottery, surpassing Powerball.

Smith provided his Keno projection Tuesday to the lottery’s board of directors. Public attendance of the meeting was limited to a teleconference line due to virus-related social-distancing recommendations. 

It’s unclear how long Connecticut restaurants and bars will remain closed, as Lamont’s order was indefinite. Public schools in the state are shuttered until at least the end of March.

Massachusetts, New York and other states have also closed schools, bars, restaurants and gyms, and placed limits on the size of public gatherings.

Smith did not provide estimated coronavirus impacts for other games, like scratch tickets and draw games, which will depend on how long the outbreak and the response to it last.

State lotteries are thought to be recession resistant and capable of quick rebounds, but the presence of a contagious and potentially deadly virus could mean other lottery retailers shut their doors, and may also make residents less likely to venture out of their homes.   

Backup HQ

Smith on Tuesday also detailed the lottery’s contingency plans for keeping operations going, should it become necessary to temporarily vacate its Rocky Hill headquarters for cleaning, employees or others in the building test positive for coronavirus.

The lottery has continued to make a lease payment to the owner of its former Newington headquarters, where employees could relocate quickly if needed, Smith said.

Intended for disaster recovery and business continuity, the space already contains desks, workstations, and warehouse and shipping facilities, Smith said.

The lottery vacated that headquarters more than 20 years ago, following a mass shooting in which an employee killed four supervisors and then himself. It moved to New Britain, and then to its current location in 2007.

Smith said he is also planning for any potential changes to the location of lottery drawings, which occur in the Fox 61 studio in Hartford. The lottery is in talks with the Department of Consumer Protection to determine where drawings could move to if that building had to close for cleaning or any other reason.

The lottery is discussing extending the window in which people with winning tickets can claim their prize, so that people don’t feel the need to go to a store during the response to the coronavirus outbreak, Smith said. Winning scratch and draw tickets usually expire within 180 days. 

The lottery has also asked that the public refrain from visiting its headquarters and issued a reminder that winning tickets for prizes under $50,000 can be mailed in to be claimed.

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