New Hampshire kicked off the year with a shake-up in its casino scene. Concord Casino, one of the state’s 14 venues, was ordered to shut down and sell. For charities and nonprofits, this meant even stiffer competition for partnerships with casinos to secure the limited donation slots.
Despite its closing, the charitable gaming industry has been growing rapidly and is expected to reach $1 billion in gross revenues in three years.
In Nashua, a new casino opening soon at the Pheasant Lane Mall is expected to become the largest in the state. Nashua already has three casinos, but some communities are still opposed to having gambling establishments in their towns.
A proposal to let communities opt-in or opt-out of hosting casinos didn’t make it past the State House this year.
As the new year unfolds, it’s clear the state’s casino scene will be in for plenty of changes — from new bills aimed at compensating host communities to discussions about how much money charities should receive, and even a push to legalize slot machines.
The accusations that Concord Casino owner Andy Sanborn took COVID relief funds he wasn’t eligible to receive and then used them for personal expenses sparked a larger conversation about New Hampshire’s charitable gaming industry that led to some changes after years of the status quo.
The most significant revision of the rules surrounding these betting parlors came through a bill to eliminate the rental fees charities pay for a spot in their rotating schedule. These fees, calculated based on “fair market value,” could range from $250 to $750 per game day. The Lottery Commission did not oversee the rental fees. An investigation found that Sanborn in particular would keep up to half of what he was supposed to pay to these organizations in the form of rent.
With the new law in place, charities no longer bear the burden of these rental costs and can finally receive the full 35% share of casino revenue mandated by state law.
Another emerging question is whether a better system could be established for charities to get a slot at a casino to level the playing field. Every year, many charities struggle to secure a spot, while others always seem to have one.
Lawmakers are expected to form a study committee to explore this issue or introduce new bills next year to address it.
Revenue from games of chance and historical horse racing has already jumped 42% in 2024, bringing in over $32 million compared to just $22.5 million last year.
A consultant hired to study the gaming industry in New Hampshire reported with the current revenue trends and at least four more casinos in the pipeline, the industry is projected to become a $1.1 billion market in just three years.
While legislators are cautious about introducing slot machines due to their faster pace of play, adding them to existing gaming halls could push revenue even higher. Historic horse racing machines are slower than slot machines.
Meanwhile, the state’s Lottery Commission has revoked Sanborn’s gaming license, after a state review found the sale agreement for the South Main Street casino in Concord was not up to par. Sanborn is appealing the order and if he is unsuccessful, the casino would be out of commission for two years.
Sanborn was ordered to shut down his casino and sell the business after he was found unsuitable for charitable gaming. This decision came after an investigation found that Sanborn had fraudulently obtained and misused $844,000 in pandemic relief funds not intended for casinos.
He was arrested in October on separate felony theft charges.
His plan to open a 43,000-square-foot casino off Loudon Road is on hold due to a lawsuit filed by a nearby property owner, which has made its way to the state Supreme Court.
Sruthi Gopalakrishnan can be reached at sgopalakrishnan@cmonitor.com
