New ‘opt out’ law overrides prior local votes to prohibit it
By Daniel Sarch, Granite State News Collaborative
A new law is compelling some New Hampshire communities to consider once again asking voters to decide whether to prohibit bars, restaurants and grocery stores from offering Keno 603, a lottery-like gambling game, to patrons.
While the communities have voted multiple times to bar Keno 603 since its inception in New Hampshire, a new state “opt-out” law automatically authorizes it in all cities and towns — unless a community’s voters decide not to allow it. If there’s no vote by 2027, Keno 603 will automatically be authorized in a community.
Under the previous law, municipalities had to “opt in” to allow keno at local establishments.
Keno, first legalized in New Hampshire in 2017, allows players to choose numbers between one and 80. After a bet is made, a set of numbers from a ball machine or random number generator determines if the selected numbers are a match, and gives earnings based on the wager.
In Keene, for example, voters have already been asked to allow keno — in 2017 and 2019. Both times they rejected it. City Councilor Jacob Favolise is spearheading the latest effort to let voters weigh in on the keno question in this year’s municipal election. Favolise emphasized that he has no stance on the game itself, but believes it’s important to let his constituents make their voice heard.
David Yeo, sits at the bar drinking his Moxie cocktail playing pull tabs with the KENO game behind him at the Elks Lodge 1280, in Franklin, N.H., on Oct. 24, 2025. While Yeo has been mostly unsuccessful with KENO, he claims to have once previously won a $55,000 prize. (Photo by Daniel Sarch)
“It's less about keno than it is about local control and communities having a say over what happens within their city limits,” he said.
Now, nine cities and 84 towns allow keno. Along with Keene, Concord and Portsmouth — both of which have also voted twice to prohibit the game — have the question on their ballot in November.
Most Granite State towns do not hold their town meetings until March, and at this point it is unclear which of them will be considering the keno question. The only city that does not have keno and is not voting on it in November is Lebanon, which holds municipal elections in March.
Lebanon Deputy City Manager David Brooks explained that the city council has voted three times from 2018 through 2020 to decline putting the question on the ballot. But Brooks said that, while he had heard about the latest legislation, he was unfamiliar with the new law’s language.
“Speaking for myself, as opposed to the city, it feels a little underhanded for the communities that decided they didn't want to put it on the ballot, didn't want to support it, and now it's forced on us, and we're obligated to put it on the ballot in order to opt out,” Brooks said.
Growth of gambling in N.H.
Margaret Byrnes, executive director of the N.H. Municipal Association, says she is grateful for the two-year decision window, but has concerns over the law’s opt-out nature.
“When it comes to making decisions locally, we want the voters or the legislative body to have to take an affirmative vote or make an affirmative decision on something, rather than allowing something by default because they did not act,” she said.
The continued growth of gambling in New Hampshire concerns Ed Talbot, president of the board of directors of the N.H. Council on Problem Gambling and a gambling addict in recovery for 47 years. He estimates 8,000 people in the state are compulsive or pathological gamblers, and 65,000 have a lesser gambling problem. According to a press release in July on a survey conducted by the National Council on Problem Gambling, nearly 20 million U.S. adults report problem gambling behavior.
But Talbot is not as concerned with keno as he is with other forms of gambling, such as sports betting, particularly among young adults. He said that prior to the COVID-19 pandemic, the most popular gambling outlets were the lottery, casinos and sports gambling. Since then, with increased access and popularity of wagering through apps like Draft Kings and FanDuel, sports betting has leaped to the top of his list of concerns.
“The state has been very slow to address it. They provide little funding, and New Hampshire was really way, way low in the services available” to address problem gambling, Talbot said. “That's going to change this year. They're really making an effort to address things.”
He pointed to a bill that would allow people recovering from gambling addiction to choose to be voluntarily barred from entering gambling locations. It didn’t pass in the last legislative session, but is expected to be revived for the upcoming session.
Claremont City Councilor Nicholas Koloski is a co-owner of Time-Out Americana Grill, which makes keno available for its customers.
“We have some people in the community that still like to come down, and when they grab dinner, or even to-go, they'll grab a few keno tickets,” he said. “It's more of a convenience item for people.”
Allan Beetle, co-owner of Patrick’s Pub and Eatery in Gilford, said he prefers not to have keno in his establishment. Gilford rejected the game in 2019.
“I never really liked the atmosphere as much when people are playing that game while sitting around at a bar,” Beetle said. “I prefer the bar being a more social area, where people are chatting with themselves and others and the staff.”
Money for education
Under state law, the net profits of all NH Lottery products, including keno, are earmarked for education funding. As of May, the NH Lottery has contributed $3 billion toward education.
A keno machine at the Elks Lodge 1280 in Franklin, the first municipality in the state to approve KENO. (Photo by Daniel Sarch)
In the 2024 fiscal year, the lottery generated an all-time high of $207 million in revenue for public schools. In the 2025 fiscal year, $11,790,000 was earmarked for education through Keno 603 alone, according to Maura McCann, the lottery’s director of marketing.
The N.H. Fiscal Policy Institute recently noted that, in 2019, NH Lottery funds comprised between 6% and 10% of Education Trust Fund expenditures. In the last two years, NH Lottery contributions made up almost 17% of the fund.
While the new keno opt-out law is expected to increase funding for public education, Policy Director Alexandra Tilsley of Reaching Higher NH said lottery money is also used for private education programs such as Education Freedom Accounts, which provides vouchers to help families pay for private school tuition and needs. It was estimated that the EFA program will cost about $50 million, leaving less money for public schools.
And despite a N.H. Supreme Court ruling this year to increase base adequacy aid for education, this year’s state budget showed little increase in public school funding. And with lottery games being a voluntary expense, stable funding is not always certain.
“It's unlikely that expanding Keno is going to meaningfully move the needle in the way we need,” Tilsley said. “I think we hope that lawmakers continue to explore other, more stable sources of funding that can really help promote success in the schools.”
These articles are being shared by partners in the Granite State News Collaborative. For more information, visit collaborativenh.org.