A table game at Ocean Gaming Casino in Hampton. (Annmarie Timmins | New Hampshire Bulletin)
The approximately 800 charities that collected $31.2 million in casino revenue last year may see legislative changes that could leave some with less money and give others their first chance at gaming proceeds.
That’s not the only aspect of the state’s charitable gaming industry lawmakers may be asked to reconsider next year.
The New Hampshire Charitable Gaming Study Commission is also weighing changes Spectrum Gaming Group said in a new study may make New Hampshire more competitive with the four other New England States that have casinos.
They include moving to slot machines, lifting limits on operating hours, allowing casinos to serve free alcoholic drinks, increasing bet limits, and letting people gamble on credit instead of with only cash.
Sen. Tim Lang, a Sanbornton Republican who serves on the commission and has been a lead advocate in the Legislature for gaming, said he can’t see most of those ideas gaining traction and expects slot machines would face a fight, though he supports them.
Lawmakers expanded operating hours two years ago, from 8 a.m. to 4 a.m., he said, and have not embraced allowing free drinks or gaming on credit. The state even limits cash dispensing machines to debit cards.
“You can’t go into debt to game in New Hampshire,” Lang said.
The New Hampshire Charitable Gaming Study Commission was established by the Legislature last year to assess how state laws are impacting gaming in the state. The group, which includes lawmakers, state officials, casino operators, and people representing charities, is expected to file its findings and recommendations by Nov. 1.
Tuesday, members discussed Spectrum Gaming Group’s 59-page analysis and recommendations. They also heard from individuals who want to overhaul the way casinos, which can operate only if they share revenue with charities, choose which groups to partner with.
Here are five takeaways:
Pat Abrami, chairman of the New Hampshire Charitable Gaming Study Commission, said the group’s recommendations will be out by November. They are likely to include rethinking how casinos choose the charities that share their proceeds. (Annmarie Timmins | New Hampshire Bulletin)
Most charities are shut out from gaming revenue.
Under current law, casinos with historic horse racing must share revenues with two charities a day. For table games, they need to partner with one. Casinos can give each charity between seven and 10 days a year.
Some charities are earning as much as $150,000 a year.
That leaves too few slots for the nearly 5,000 charities registered in New Hampshire interested in boosting revenue with gaming.
There is also no standard casinos must follow in choosing charities or a requirement that they cycle charities through from year to year, to give more nonprofits a chance to benefit.
The commission heard from two individuals Tuesday who urged it to recommend new regulations that would not only increase the number of charities participating but also give preference to homeless and domestic violence shelters; health care agencies; and other groups providing essential care.
That’s a priority for Sen. Lou D’Allesandro, a Manchester Democrat and charitable gaming advocate who sits on the commission.
“How do you reach more charities, that’s the $64,000 question,” D’Allesandro said. “Do you say charities get three days instead of 10? Do you do two charities at the same time rather than one (the existing rule for table games)? You have to be really creative if you want to help charities that have need.”
Room to grow
According to the analysis, the state’s 12 casinos are capturing only 16 percent of the nearly $1.1 billion in potential annual revenue. The state’s largest casino operator disagrees, however.
For now, lawmakers have capped the number of casinos with historic horse racing machines, which resemble slot machines and bring in the most revenue, at 18; there are 10 open now, with about 2,000 machines among them.
Based on the state’s proximity to Maine and Massachusetts casinos and New Hampshire’s population size, New Hampshire could support nearly 6,300 historic horse racing machines, according to the report.
Dick Anagnost, who with Peninsula Pacific Entertainment will soon have six casinos in the state, thinks that’s a reach.
He said that estimate overlooks the fact that Massachusetts and Maine have slot machines, which he said are more attractive because the winnings are higher. The analysis he and his partners commissioned determined New Hampshire could support 3,000 to 3,800 machines.
Slots vs. historic horse racing machines
New Hampshire has long resisted slot machines and three years ago legalized historic horse racing machines instead. They look and play in similar ways, though they have key differences.
With historic horse racing, the results are determined by past horse races, not a random draw, and players are playing against others who’ve placed bets on the race, not the house.
Slot machines also return results a bit more quickly than historic horse racing machines, something critics say encourages compulsive gambling.
The report urged the study commission to consider moving to slot machines to bring in more revenue.
Casino operators pay 6 percent to 12 percent of their gross gaming revenue to the company that calculates wagers and payouts. Slot machines don’t carry the same expense, and Spectrum argued that that savings would increase revenue to the state, charities, and casino operators.
Lang and Anagnost support slots, though they expect the opposition to slots to continue in the Legislature.
“That goes back to slot machines are equivalent to a four-letter word,” Anagnost said. Critics have argued they are more addictive and bad for society, he said: “All the social norms we grew up with. The attitude of the Legislature for the last 20 years is slot machines are no damn good.”
New Hampshire goes its own way
New Hampshire is alone in prohibiting casinos from operating 24 hours a day.
“I don’t think there is an appetite to expand hours and I don’t think the operators are looking for it,” Lang said.
Only Maine and New Hampshire prohibit casinos from offering free alcoholic drinks. They are also alone in prohibiting extending patrons credit to game
New Hampshire and Rhode Island are unique in allowing people to play charitable gaming beginning at age 18. Elsewhere, people must be 21.
All states allow people to voluntarily add their name to a “do not game” list, but New Hampshire is the only state that does not keep a statewide list. Casinos have individual lists.
State is regulating gaming well but the Lottery Commission needs more help
The report recommended the state maintain its calculations for divided gaming revenue among casino owners, the state, and charities. Charities receive 35 percent of table game revenue and 8.75 percent of revenue collected from historic horse racing. The state’s cut is 10 percent and 16.5 percent, respectively. The rest goes to casino operators.
The report found that the state’s oversight has meant that gaming is growing in a “responsible manner.”
Casino operators spoke highly of Lottery staff, according to the report. There are just too few, it said. Attracting, training, and holding onto staff for inspections, licensing, enforcement, and other functions will be critical as the gaming industry continues to grow, the report said.