Some changes could be coming to New Hampshire casinos.
According to a report from the Concord Monitor, the House Finance Committee agreed to a part of Gov. Kelly Ayotte’s budget that would swap out historical horse racing machines for either traditional slot machines or video lottery terminals.
Additionally, a bill would explicitly authorize properties to swap out HHR machines for VLTs. VLTs are very similar to traditional slot machines, but results are based on a lottery-type setup.
It would also eliminate wagering at the state’s charitable casinos. There is a $50 cap on wagers in the current legal landscape.
The state currently allows historical horse racing machines instead of video lottery terminals or slot machines. HHR machines look and feel like regular slot machines, but their outcomes are based on horse race results.
Swapping the state’s 3,300 HHR games for more traditional slot-like games in New Hampshire’s 12 casinos could see state revenue climb if SB 83 is approved. It also is the first step to allowing traditional slot machines in those properties.
“The video lottery terminals will produce a significantly larger amount of revenue for the state and for the charities that participate than the historic horse racing machines,” State Rep. Joe Sweeney said.
Charity Gaming Becomes Big Business
New Hampshire’s casino industry is incredibly unique. Properties must donate at least 35% of table game revenue to charities, and another 10% goes to the state. However, HHRs offer a more lucrative arrangement for casinos. For HHRs, casinos can hold 12% of the handle, with operators retaining 75%. Charities receive 8.75%, and the state collects the remaining 16.25%.
If the bill passes, Sweeney predicts the state would have 4,000 slot machines and 500 HHRs, adding as much as $128 million in state revenue and $70 million for charities and nonprofits. The state also currently caps wagers at $50. The estimates take into account lifting that cap as part of the legislation.
By comparison, HHRs brought in just $28 million last year for the state. Gov. Kelly Ayotte® has included the additional slot revenue in the state’s upcoming budget.
A recent report from the Spectrum Gaming Group., a Pennsylvania-based consulting firm, estimated that the state could be a $1.1 billion gaming market in just three years.
“In the big picture, we think New Hampshire is on a good track,” Spectrum Executive Vice President Joe Weinert said. “You are experiencing growing pains, I don’t think, which is a surprise to anybody.”
Along with this latest gaming-related bill, state legislators have recently looked at legalizing online casinos, which includes online poker.
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