Most New Hampshire casinos have historic horse racing machines because they generate significantly more revenue than table games like poker and blackjack. (Annmarie Timmins | New Hampshire Bulletin)
A judge has again given Andy Sanborn at least 50 more days to sell Concord Casino, a significant win, saying the additional time would cause little harm to the state and undoubtedly benefit public education and the charities that rely on casino revenue.
Had administrative law Judge Gregory Albert decided otherwise and Sanborn failed to sell by the state’s Sept. 30 deadline, the casino would have lost its gaming license, its only asset, for two years and been virtually worthless. Nearly 30 charities shared about $170,000 last year in revenue from Concord Casino before the state shut it down in December.
The ruling does not mention and does not impact the state’s criminal investigation into Sanborn and the casino for alleged pandemic fraud, which led to the casino’s forced closure and sale. No charges have been filed.
In his order Sunday, Albert rejected the state’s argument that giving Sanborn more time to sell would unjustly reward him.
“That Mr. Sanborn would also receive proceeds from the sale does not change the scenario (that the state and charities benefit from casino revenue),” Albert wrote, noting that the casino’s charity partners provide scholarships and support “valuable” projects. “(Sanborn) owned the business, and if the business is sold, he is owed money from the sale. His possible profit does not change the positive impact that having a casino in that location with a license would have for New Hampshire.”
While Sanborn won a reprieve with Albert’s order, it’s not the one his lawyers, Zachary Hafer and Adam Katz of Cooley in Boston, had sought.
Albert denied their request for an extension of the Sept. 30 deadline, concluding that while he thinks one is warranted, he does not have the authority to grant it.
With Concord Casino shuttered and in limbo, charities left in the lurch
Instead, Albert stayed, or paused, his order denying the extension, until one of two options: 30 calendar days after the window to seek rehearing has expired or, if a motion for rehearing is filed by either party, 30 calendar days after a decision on rehearing is issued, which is another route to additional time.
Either party requests a rehearing before Albert within the next 15 business days.
In an email, Maura Sullivan, spokesperson for the New Hampshire Lottery Commission, did not comment specifically on whether it would seek a rehearing. “While we are still reviewing the decision, we thank Judge Albert for his diligence and the pace of his efforts in reviewing this matter.”
Sanborn’s attorneys responded similarly when reached Monday and said they are grateful for the opportunity to close the sale.
“We are thankful for Judge Albert’s close attention to this case and gratified that Judge Albert agreed that this sale is clearly in the public’s interest,” Hafer said. “We look forward to closing this transaction as quickly as possible.”
Sanborn’s attorneys have not named the buyer publicly. The buyer has told Sanborn he will finalize a deal as soon as the New Hampshire Lottery Commission completes its background investigation and deems him “suitable” to hold a gaming license in New Hampshire. It must also grant the buyer a “facilities license” to reopen Concord Casino.
Lottery officials have told the buyer they may be able to complete their suitability review by Sept. 30 but could not guarantee it.
If the buyer is approved for a license by the New Hampshire Lottery Commission and closes a deal with Sanborn by next Monday, Albert’s order is moot. So far, a sale has proven difficult, in part because potential buyers have been leery about inheriting the casino’s legal problems.
If Sanbon fails to close a deal by Sept. 30, there are a few other possible outcomes.
If either party requests a rehearing before Albert within the next 15 business days and he declines to change his order, the case would go to the state Supreme Court, during which Albert’s stay of 30 calendar days would remain in place.
The 15-day window to seek a rehearing, which equates to 19 calendar days and Albert’s 30-calendar day stay, would give Sanborn and his buyer an additional 50 days to get through the suitability review, and close a deal.
If neither side appeals, Albert’s 30-day stay begins Oct. 14, meaning Sanborn would have until mid-November to sell.
That would be nearly a year since a prior administrative law judge upheld the New Hampshire Lottery Commission finding that Sanborn had misappropriated the pandemic loans and was not fit to be associated with gaming in New Hampshire.
That judge, Michael King, declined the state’s request to revoke Sanborn’s license, however, and instead ordered him to close Concord Casino by the end of last year and sell by June 30. King ruled that if Sanborn hadn’t sold by then but had a deal pending in place, he could get a three-month extension to sell, until Sept. 30.
Albert, who took over the case in June, granted Sanborn that three-month extension in early July. His new order essentially pushes Sanborn’s deadline to sell out to late November.
Sanborn’s attorneys have said that if their client sells, he would use some of the sale proceeds to pay off the $844,000 in pandemic loans the state alleges he used to enrich himself. The Attorney General’s Office alleges Sanborn spent nearly $182,000 of the money on two Porsches and a Ferrari, the latter as a present for his wife, Rep. Laurie Sanborn, a Bedford Republican.