Proposed Changes to Charitable Gaming in New Hampshire Spark Debate

In 2023, Cross Roads House, a Portsmouth-based homeless shelter, garnered over $65,000 through charitable gaming efforts, while the NH Coalition to End Homelessness secured approximately $39,000. Both organizations collaborated with New Hampshire casinos, though their financial outcomes differed significantly due to the size and scale of their casino partners.

To address these disparities, State Representative Dick Ames (D-Jaffrey) has introduced legislation to place annual caps on the revenue individual nonprofits can earn through charitable gaming. This proposal stems from shared during state gaming commission meetings, where some charities expressed concerns about unequal revenue distribution. While some organizations report annual donations exceeding $100,000, others struggle to raise even $10,000.

“It would be an interim step towards developing a better system,” Ames explained. “But it would be fair and more systematically constructed.”

The specific revenue limits are still under discussion, and Ames has indicated he does not plan to differentiate caps based on charity types, such as veterans’ groups or school booster clubs.

Proposals for Video Lottery Terminals

In a separate initiative, State Representative Fred Doucette (R-Salem) has proposed replacing historic horse racing machines with video lottery terminals (VLTs). These devices, resembling slot machines, promise increased revenue for both charities and the state. Currently, historic horse racing machines allocate only 8.75% of their earnings to charitable causes, whereas table games contribute 35% of casino revenue to nonprofits. Doucette argues that VLTs could align charitable contributions with table game percentages.

“The inevitability of going forward with these types of machines is beneficial to all involved, most importantly, the charities,” Doucette stated. While acknowledging potential concerns about the faster pace of VLT play, he added, “The state has an opportunity to get some more revenue. The market is there.”

Under Doucette’s proposal, 0.25% of VLT revenue would problem gambling programs, and 4.75% would contribute to the retirement fund for police and fire personnel.

Local Control Over Gaming Machines

Another legislative proposal by State Representative Bill Ohm (R-Nashua) would empower municipalities to decide whether to allow historic horse racing machines in their communities. This approach mirrors the process used for Keno, where towns hold public votes to approve or reject the electronic lottery game.

Currently, casinos must apply for licenses to operate historic horse racing machines, with no option for towns to opt out. “My bill is to try to correct that situation,” Ohm explained. “I thought it’d be appropriate to put this decision in the hands of the voters.”

Ohm is also advocating for new tax policies that would assess large gaming halls, such as those in Salem and Nashua, based on their enterprise value.

Rapid Growth Fuels Oversight Discussions

The expanding gaming industry in New Hampshire has prompted additional legislative efforts to ensure transparency and fairness. One bill under consideration would require historic horse racing facilities to share a portion of their revenue with the communities hosting them. Another proposal seeks to establish a charitable gaming oversight commission to monitor how casinos select their charity partners and how the funds are utilized.

A recent report by a gaming consultancy predicts that New Hampshire’s gaming market could reach $1.1 billion within three years, driven by growing demand and new out-of-state operators entering the scene. This shift from modest gaming rooms to sprawling entertainment complexes has legislators considering proactive measures.

“It’s evolving rapidly, much more rapidly than anticipated,” Ames remarked. “There’s a lot to think about and a lot that was not anticipated in of the amount of money involved. The casinos that are participating in charitable gaming are becoming large and owned in most cases by out-of-state interests.”

Source:

”New Hampshire charities may see caps on casino donations”, cdcgaming.com, December 26, 2024.