Conn. AG Urges Changes Before Allowing Keno

"Nevertheless, I have always intended to make sure we proceed in a way that honors and protects Connecticut's long-standing relationship with the Mashantucket Pequot and Mohegan tribes while establishing a new and much-needed revenue stream for our state," she said. She also noted that more than a dozen other states have the game, including neighboring Massachusetts, Rhode Island and New York.

The Mashantucket Pequots, who own and operate Foxwoods Resort Casino, originally issued a statement saying Blumenthal had "an accurate understanding" of the agreement with the state. But a couple of hours later, the tribe retracted those comments and said: "We have not reviewed the Keno proposal and at this time are unable to comment on either the proposal or the Attorney General's statement at this time."

Bruce "Two Dogs" Bozsum, chairman of the Mohegan Tribe, said the Mohegans "will more fully consider the proposal after our legal team has had the opportunity to review the final language and the state's definition of this new game."

Both tribes' casinos currently offer Keno to their patrons.

State lawmakers had asked Blumenthal for his opinion on the legality of Rell's Keno proposal last week. Rell suggested adding the game as part of a $37.2 billion revised budget for the 2010 and 2011 fiscal years. The Republican governor and the Democrat-led General Assembly have been unable to agree on a budget, stymied by a massive deficit.