Jackpot?

Scratch tickets, Megabucks, Powerball—check. Texas Hold’em, Lucky 7, Bingo—well, check, but only for charity. Slot machines, baccarat, casino resorts? Jackpot. At least, that’s what some New Hampshire lawmakers are betting on this year with their bills to bring in more money by rolling more gambling into the Granite State.

The Senate is reviewing two bills that would allow video gaming (slots or other gambling machines) at existing dog and horse racing facilities (see the Feb. 18 installment of Front Door Politics). Next week, two more gambling initiatives hit the House. They’ve already had public hearings, but the House Local and Regulated Revenues Committee is split on whether or not they should pass. They’ll both go to a House vote on Wednesday, March 4.

With license costs as high as $50 million at a time when the state budget is narrowly closing its $275 million budget gap, gambling ventures are a high stakes bid. Skeptics, such as Gov. John Lynch, worry that the social costs may outweigh the overall financial gain from casinos. Some businesses claim that casinos touted for their tourist draw instead drain vitality from nearby businesses. Advocates for localism don’t like that profits would leave New Hampshire in the pockets of out-of-state casino owners. Even casino proponents agree that some gamblers have addiction, drug and alcohol problems. And, numbers around the country show a decline in gambling revenue with the current recession.

But the hope of casino supporters hasn’t run out. For starters, a feeling of inevitability is brewing that some new stream of revenue will have to start flowing, and according to a recent UNH Survey Center Poll, far more residents would prefer gambling to either an income or sales tax. Others just plain like the entertainment, and the idea that they wouldn’t have to travel to Foxwoods to get it. Betting backers dispute the correlation between casinos and increased crime rates, and they stand by promises of job creation and tax revenue. Citing that money-making potential, on Feb. 4 the leadership of the Greater Salem Chamber of Commerce placed its chips in support of expanded gaming at Rockingham Park.

In the Seacoast, the Greater Portsmouth Chamber’s government affairs committee is discussing putting a vote on the topic to its membership. “I think the conversation needs to bloom a little more,” says Portsmouth Chamber president Doug Bates.

HB461—state-owned casino for public education

House Bill 461, sponsored by Rep. Anthony DiFruscia (R-Windham), would establish a casino commission charged with choosing the location for “one or more casino and convention center facilities.” Sporting events would be off limits as gambling fare, but the casinos could deal in video or table games. The commission could choose whether to have the state operate the facilities or contract management of daily operations to a private enterprise.

Specifics like size or cost of the convention centers are not detailed, except that the sites must be at least 100 miles apart. Also, no licensing or renewal fees are laid out, but the bill gives the casino commission authority to determine annual fees for issuing and renewing work permits for casino employees.

The bill simplifies the distribution of profits from both casino and convention center operations. A gambling addiction treatment program would receive 5 percent of revenues, while the rest would go to state education aid: 10 percent to the excellence in higher education endowment trust fund; 10 percent to the University System of New Hampshire; and 75 percent to the education trust fund, which provides “adequate education grants” to public school districts and approved charter schools, relieves the property tax burden for low- to moderate-income homeowners and funds kindergarten programs.

HB 593—gaming destinations

Up to three “destination gambling resorts” could be built in New Hampshire if the Legislature approves House Bill 593, sponsored by Rep. Frank Emiro (R-Londonderry). The new law would also allow both table and video gaming where dog and horse racing bets are already made. The general fund would receive 95 percent of the $50 million license fee for each new resort, while host towns would bank the remaining cash. A $30 million fee for video gaming at existing locations would also be charged and split the same way.

The bill outlines two resorts of more than 100,000 square feet in the northern tier (north of Concord, west of Peterborough). Each resort would also have to include no less than 150 guest rooms, plus 150 acres of tourism or outdoor recreation facilities within a 20-mile radius. A minimum investment of $200 million would be required for land, infrastructure, and construction of the facility.

Requirements are similar for the one resort called for in the southern tier (towns along the Massachusetts border). Capital investment would start at $300 million for a minimum 150,000-square-foot facility and an 18-hole golf course, plus other outdoor recreation facilities totaling 150 acres.

Plans are scaled back for existing betting sites, where operators would have to choose between either video or table gaming. No more than 2,000 video lottery machines could be installed, and at least $100 million in capital investment would be required.

Revenue sharing in Rep. Emiro’s plan depends on how much money is made. In all cases, the host town and state tourism would each receive 2 percent, with the Dept. of Transportation getting 1 to 3 percent for pursuit of needs not covered by the state highway fund, such as rail and mass transit. One percent of profits from video slots at dog or horse racing facilities would be directed to an existing program to treat alcohol and drug abuse.

The split of remaining profits would range from 6 to 43 percent for the state’s general fund, and 51 to 87 percent for the private operator.

Oversight of the gaming operations would rest with a newly created position of executive director within the current lottery commission. Liquor licensing is not mentioned in the bill, nor are the length of a valid license to operate nor the fees for renewal.

Granite State Gambling

Gambling, in addition to playing the lottery, is already legal in New Hampshire, but only in certain, controlled settings. The Hinsdale Raceway closed this winter and the Rochester Fair ended its horse harness racing event in 2007, but today you can still bet on live or simulcast dog and horse racing at three different places in New Hampshire: Rockingham Park in Salem, Seabrook Greyhound Park, and The Lodge at Belmont. These facilities are all supervised by the Racing and Charitable Gaming Commission, which also oversees games of chance like Bingo and Lucky 7.

Front Door Politics is a weekly legislative update for everyone affected by New Hampshire laws. An online learning center, additional reporting, and a blog subscription are available at www.frontdoorpolitics.com.