New commission to give charity casinos a complete look

Aug. 14—CONCORD — A high-powered 13-person commission has begun an extensive review of charities' gambling operations in New Hampshire, including whether organizations are getting a fair share of the profits and how long 14 casinos should have a monopoly on the most lucrative game in their rooms.

The effort is scheduled to take 15 months and cost $150,000.

In 2006, the New Hampshire Legislature passed a law (HB 1744) that turned the small-time "Monte Carlo Nite" tradition of nonprofits netting a few dollars from local gambling events into a first-in-the-nation charity gaming model.

Two years ago, a tweak to the arrangement (HB 626) gave these 14 "charity casinos" the exclusive right to offer slot machines playing randomly selected historic horse races.

These machines are in place at eight of the charity casinos.

Lawmakers followed that up this year with a five-fold increase in the maximum single wager in a table game from $10 to $50 (SB 120).

"Historic horse racing has changed the complexion of charity gaming in the state. It's worth a complete look," said former House Ways and Means Chairman Patrick Abrami, R-Stratham, Gov. Chris Sununu's appointee to the panel.

State Rep. Fred Doucette, R-Salem, said his duty is to see whether the pot should be bigger for the 575 charities who hold up to 10 casino events a year, from which they derive a big slice of their annual budgets.

"I am the cheerleader for these charities, and they literally live or die on what they can make at these events," Doucette said during an interview.

"I see the operators getting a lot healthier in recent years, and I want to make sure charities are treated fairly and equitably."

According to national studies of commercial casinos, 96% of what's bet is paid out to the gamblers, with the owner keeping the other 4%.

The typical profit margin for a casino, including hotels, meals and drink sales, is about 10%.

At charity casinos in New Hampshire, charities get 35% of the net profit from table game betting, the state gets 10%, and the operator gets the other 55%.

However, nonprofits receive 8.75% of the profits from gambling on historic horse races, the state gets 16.25%, and the operator keeps the remaining 75%.

Gaming operators say the reduced share for charities helps cover the cost of renting the horse-racing machines.

Charity profits rising

In 2022, this gambling produced nearly $15 million for charities.

By contrast, through six months this year, the charities have received $17.9 million, according to Charlie McIntyre, executive director of the New Hampshire Lottery, which regulates the gaming.

For many years, these charity casinos were run by local business owners.

Then the national gaming industry took note of New Hampshire's high profit margins and joined in some of these developments.

—The Brook: In 2019, Eureka casinos, an employee-owned gambling company based in Nevada, bought the former Seabrook dog track and turned it into what they called the "largest charity casino in America," with more than 500 slot machines on its 90,000 square-foot footprint.

—Churchill Downs: In September, the Kentucky Derby owner and largest online gaming company in America, bought The Chasers Poker Room, one of the largest charity casinos in Salem.

—Delaware North: The owner of the TD Garden in Boston, which has casinos in eight states, in March bought the Boston Billiards Club and Casino in Nashua.

—Peninsula Pacific Entertainment: Manchester developer Dick Anagnost owns four of the most profitable charity casinos — in Manchester, Dover, Lebanon and Keene. In 2022, Peninsula Pacific Entertainment, which turned a single riverboat casino in Dubuque, Iowa, into a $1.4 billion hospitality business, acquired an ownership interest in all four.

Aaron Gomes, Peninsula Pacific's chief operating officer, is the gaming operators' representative on the state commission.

On Monday, the commission named House Ways and Means Committee Chairman Laurie Sanborn, R-Bedford, as its leader.

Sanborn's husband, former Republican state Sen. Andy Sanborn, owns The Draft restaurant, which includes the Concord Casino.

The Concord Planning Board in June approved Sanborn's bid to build a much bigger project off Loudon Road in Concord, which eventually will include almost 500 slot machines, a hotel, conference center and large concert venue.

An abutter appealed the planning board's decision to Merrimack County Superior Court.

Charities fight online gaming

Senate Ways and Means Chairman Tim Lang, R-Sanbornton, helped pass the latest bill boosting the maximum wagers allowed at these casinos. At the same time, he sought this commission, which became part of the trailer bill attached to the two-year state budget.

During the 2023 session, Lang sponsored a bill to legalize online gaming. The proceeds would have gone to support scholarships for community college students (SB 104).

The bill narrowly passed the Senate, 12-11, but the charities turned out in force and convinced the Sanborn-led House committee to vote, 20-0, to recommend killing it.

"The bill would decimate charities," said Salem Rep. Doucette.

Lang said the online betting money would have come largely from a "new clientele" — those who now bet illegally — and would not have damaged the charities' profit margins.

In May, the House voted to postpone the topic until 2025.

Doucette said he supports the current moratorium on permitting historic racing machines in other commercial businesses.

"This would turn South Broadway Street in Salem into the Vegas strip," he said.

In May, Sununu vetoed legislation (SB 51) to extend that monopoly to 2026.

"In New Hampshire, we treasure small and limited government that is accountable to the people and does not pick winners and losers," Sununu wrote in his veto message.

"If this bill becomes law, the entities that benefit from this misguided government policy will be back again in 2026 to ask for another extension. It is up to us to uphold New Hampshire's small government spirit and allow the free market to thrive."

Unless the Legislature acts again, charity casinos' monopoly on these machines would end next July 1.

Other commission members include House Ways and Means Committee members John Janigian, R-Salem; and Dick Ames, D-Jaffrey; Attorney General John Formella; Concord Lions Club volunteer Norm Roberge and animal rights volunteer Giovanna Bonilla.

Bonilla is director of events and partnerships with the Boston Billiards Club and Casino. She also is a lobbyist for the charity casino owner Delaware North, who paid him $5,600 in fees through July.

The commission meets next on Oct. 17.

klandrigan@unionleader.com