A special commission charged with reviewing New Hampshire’s rapidly growing charitable gaming industry kicked off its first day of testimony Tuesday, as it begins a year-long effort to craft recommendations for the Legislature on how best to regulate the booming gambling market.
New Hampshire’s unique model for legalized gambling requires that a certain percentage of proceeds from the state’s 14 licensed casinos goes towards a rotating list of charities. The state also regulates maximum bet sizes and hours of operation.
But in recent years, lawmakers have eased those restrictions and given the green light to slot machines. As a result, the industry has seen a wave of out-of-state companies acquire charitable gaming facilities as they seek a share of the profits. There are also pending requests before local planning boards to approve new, large-scale facilities in Rochester, Concord and Nashua, and a proposed facility in Conway.
With that as the backdrop, the Legislature created the special commission to provide recommendations for how to best regulate the industry while also supporting the nonprofits that benefit from its proceeds.
“We don't want to harm the charities, we want to continue to grow the charities that can be involved,” said Patrick Abrami, a former state representative from Stratham who chairs the commission. “But with all these outside interests now moving in, it's a different world.”
Abrami was put in charge of the commission after the New Hampshire Attorney General announced a criminal investigation into the husband of its previous chair, Rep. Laurie Sanborn, who stepped down from the post. Former state Sen. Andy Sanborn, who sought the Republican nomination for Congress in 2018, runs Concord Casino from inside a bar he owns on the edge of the capitol city’s downtown business district.
He is now facing the loss of his charity gaming license and potential criminal charges for allegedly misusing $844,000 in federal COVID-related emergency loans on personal expenses, including sports cars. He denies those allegations, and is slated to next appear in court on Friday, as he seeks to delay an administrative hearing to rescind his license.
Charles McIntyre, the New Hampshire Lottery's executive director, focused on the growth of the industry during his presentation to the commission Tuesday. He noted that “significant sums of money” are likely coming into the state as more facilities bring in slot machines. He said one potential regulatory change could be allocating some of those proceeds to the towns and cities where charitable casinos are located.
The commission is also expected to review the fees that charities are generally required to pay to the casinos, known as rents, and look at how states around the region regulate gaming.
The body has until Nov. 1, 2024, to issue a report with recommendations. A consulting firm is likely to be hired to assist in the commission’s research.
