In modern China, the idea of using lotteries to fund a public institution has not become accepted in China before the late 19th century.

The Chinese lottery is not documented before 1847 when the Portuguese Government of Macao decided to grant licenses to lottery operators. (By the way the Portuguese then called this “white pigeon (“the Chinese lottery”). Following that decision, results of keno games in great cities were sent to outlying villages and hamlets by carrier pigeon, resulting in its Chinese name “white pigeon tickets”,
The Chinese played the game using sheets printed with Chinese characters, often the first 80 characters of the Thousand Character Classic, from which the winning characters were selected. Ultimately, Chinese immigrants introduced keno to the West when they sailed across the Pacific Ocean to help build the American trans-continental railroad.Keno History

Although United States in 1931, lotteries remained illegal. Not to be put off, keen Keno players changed game to be “Race Horse Keno” giving the impression that it was a game of betting on horses. Each number a player placed a bet on was supposedly a bet on a horse. This enabled Keno players to carry on playing despite illegal. To this day rounds of Keno are still known as races. But, the government did not rest and decided to tax of- track betting thus making Race Horse Keno a taxable game. After lotteries were legalized, Keno reverted to its original name.

Keno game is believed to be introduced in 200 B.C. in China. It was apparently born out of the necessity to combat the shortage of funds and keep the supplies up for the army, needed to win the war. Keno winnings were probably used to build the Great Wall of China. The game being an instant success is also seen as the major reason for the victory of Cheung’s forces.

The game of Keno traveled to America with the wave of Chinese immigrants who came to work on the railroads. It thrived amongst these Chinese immigrants despite the fact that gambling was illegal. The main concentration of the Chinese immigrants was around the San Francisco area and that is where the keno game flourished. The immigrants would relax after a hard day’s work to a game of Keno. Americans referred to it caused great interest. Non-Chinese-speaking individuals found it very difficult to play Keno, as the characters were too confusing for them. As a consideration for their fellow Americans, the keno card was changed to Arabic numerals, making it an easier game for English speakers to understand and play. This was the real start of Keno in the United States. Read about the very interesting card counting history.