This story was originally produced by the New Hampshire Bulletin, an independent local newsroom that allows NHPR and other outlets to republish its reporting.
Charities would no longer have to give up some of their winnings in rent payments to the casinos they partner with under a bill that passed in the House Thursday.
Senate Bill 112, which cleared the House on a voice vote, would prohibit casinos from charging charities rent, a practice that is costing charities in some locations as much as $500 to $750 a night, sometimes half of what they win. It now heads to the Senate because the House amended its version.
Casinos partner with charities because they have to under state law, which allows them to run poker and other table games only if 35 percent of the proceeds go to a charity. The state gets 10 percent, and the casinos keep the rest. The three entities share proceeds for historic horse racing differently: 8.75 percent goes to charities; 16.25 percent to the state, and the remaining 75 percent goes to the casino.
In November, charities raised nearly $2.8 million through both types of gaming before paying rent, according to the New Hampshire Lottery Commission. Casinos collected nearly $11 million in that time, and the state took in $2.2 million.
The Gate City Casino in Nashua had the highest revenue for table games in that time, about $1.1 million, while The Brook in Seabrook took in the most on historic horse racing at $3.5 million, according to the New Hampshire Lottery Commission.
Rick Newman, a lobbyist for the NH Charitable Gaming Operators Association, which represents casino owners, said his members supported the bill.
He said casino owners have been allowed to charge rent since charitable gaming was enacted in 2006. The $2 maximum bet in place then was so low, casino owners couldn’t make money without charging rent, he said.
When the bet limit was increased to $50 in July, casino owners could be profitable without charging rent, Newman said. At least one casino, Aces and Eights in Hampton, is not charging rent, according to the New Hampshire Lottery Commission’s November report. Newman said others have been talking of doing the same since the bet limit was increased.
The bill also continued the moratorium on new historic horse racing licenses, a game that brings in much more than table games. That measure caps the number of historic horse racing sites to the approximately 15 in place now and potentially five additional individuals or organizations that have licenses under review now.
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