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Keno
Keno is a number-draw casino game in which players select numbers from a pool — typically 1 through 80 — and win payouts based on how many of their picks match a set of randomly drawn results. Understanding what keno is, and how its underlying mathematics differ from other casino formats, matters for any B2B team evaluating game portfolios, house edge profiles, or player-engagement strategies. Often grouped alongside lotteries and bingo, keno occupies a distinctive niche: simple mechanics paired with some of the widest house-edge ranges in the industry.
What Is Keno?
Keno is a lottery-style gambling game offered in land-based casinos, online platforms, and state-run lottery programs. The game traces its origins to ancient China, where a predecessor called baige piao (“white pigeon ticket”) used characters from the Thousand Character Classic instead of numbers. Chinese immigrants brought the game to the United States in the mid-19th century during the railroad construction era, where it was eventually adapted with Arabic numerals and a reduced grid of 80 numbers.
In 1933 it appeared in Nevada gambling halls as “Race-Horse Keno” — using fictional horse names to circumvent anti-lottery statutes — before transitioning to a purely numerical format after those laws changed in 1951. Today, keno is a staple across both brick-and-mortar casinos and iGaming platforms worldwide, with RNG-driven online variants, live-dealer versions, and progressive-jackpot editions all available from major game suppliers.
How does Keno work?
The core gameplay loop is straightforward:
- Select numbers (“spots”). The player picks between 1 and 20 numbers from a board of 1–80. Most online variants cap selections at 10–15.
- Place a wager. Bet sizes and optional side bets (e.g., multipliers) vary by operator and paytable.
- Draw phase. Twenty numbers are drawn at random — either via a physical ball machine in land-based settings or a certified Random Number Generator (RNG) online.
- Payout determination. The player’s payout depends on how many selected numbers match (“catch”) the drawn numbers, the total spots chosen, and the operator’s paytable. The more catches relative to spots, the higher the payout.
Keno probabilities follow a hypergeometric distribution. The total number of possible 20-number combinations from a pool of 80 is approximately 3.5 quintillion, which ensures genuine randomness in every draw. Each operator sets its own paytable, meaning the same spot selection can yield very different Return to Player (RTP) figures depending on the venue.
Keno vs. Slots — a product comparison
Both keno and slots are RNG-driven, high-margin games, but they differ in key product dimensions. Slots typically offer RTPs between 92% and 97%, while land-based keno RTPs can dip as low as 60–75%.
Slots deliver rapid, automated play cycles with rich audiovisual feedback; keno provides a slower, self-paced experience closer to lottery draws. From a portfolio standpoint, keno appeals to a different engagement profile — players seeking a low-bet, low-frequency format with outsized jackpot potential rather than high-frequency spin sessions.
Why Is Keno Important?
For B2B operators, affiliates, and product teams, keno serves several strategic functions:
- Portfolio diversification. Keno fills the gap between slots and table games, attracting lottery-oriented players who might not engage with either category. Its simplicity lowers the barrier to entry for recreational and older demographics.
- High theoretical margin. With house edges commonly between 20% and 35% in land-based settings, keno generates significant gross gaming revenue per unit of floor space or per session, even at low average bet sizes.
- Flexible paytable design. Unlike blackjack or roulette, where rules are largely standardized, keno allows operators to calibrate paytables — and therefore house edge — across a wide range. This flexibility lets product teams A/B test payout structures to optimize for retention, margin, or promotional objectives.
- Cross-sell pathway. Online keno variants with progressive jackpots or multiplier mechanics can serve as entry-point products that funnel players toward higher-engagement verticals.
Wrap-up
Keno’s appeal lies in its simplicity for players and its mathematical flexibility for operators. For product and analytics teams, that flexibility is a double-edged sword: it allows precise margin tuning but demands rigorous paytable modeling, transparent player communication, and ongoing performance measurement against theoretical benchmarks.
Whether keno serves as a portfolio filler, a jackpot-driven acquisition tool, or a cross-sell entry point, its value to the business depends on disciplined math, clear messaging, and continuous measurement.
FAQ
What is the typical house edge for keno? It varies widely. Land-based keno commonly carries a house edge of 20–35%, while some online variants reduce it to 4–8% by offering more favorable paytables.
How does keno differ from a state lottery? Structurally, both involve selecting numbers and matching them to a random draw. However, keno draws occur far more frequently (every few minutes in casinos vs. weekly or biweekly for lotteries), bet sizes are smaller, and operators have more flexibility in setting paytables.
Is there a strategy to improve keno outcomes? No selection pattern or “hot/cold number” system changes the mathematical expectation. Each draw is independent, and outcomes are governed by a certified RNG or physical ball machine. The only actionable decision is choosing a paytable with a higher published RTP.
Does the number of spots chosen affect the house edge? Yes. Different spot counts carry different house edges under the same paytable. Some operators offer more favorable payouts on mid-range selections (4–8 spots) while keeping higher margins on 1-spot or 10+ spot picks.