The New Hampshire House recently passed a landmark bill that prohibits casinos from charging rent to charities but failed to get an online casino bill on the calendar for 2024.
The move aims to alleviate the financial burden on charitable organizations, which have been losing a significant portion of their winnings to exorbitant rent fees. The bill, known as Senate Bill 112, has garnered widespread support as it addresses an issue that has been plaguing charities in the state for years.
Under state law, casinos in New Hampshire are required to partner with charities in order to operate poker and other table games. These partnerships ensure that 35 percent of the proceeds from these games are donated to charitable organizations, with an additional 10 percent going to the state. The remaining revenue is retained by the casinos themselves. In contrast, the distribution of proceeds from historical horse racing (HHR) differs slightly, with 8.75 percent allocated to charities, 16.25 percent to the state, and the remaining 75 percent going to the casinos.
The problem arises from the casinos’ practice of charging rent to the charities they partner with. Charities have been forced to surrender a significant portion of their winnings to cover these rental fees, which can amount to as much as $500 to $750 per night. In some cases, this rent fee constitutes half of the charities’ total winnings. This financial burden has been a major obstacle for charitable organizations, limiting their ability to fulfill their missions and provide assistance to those in need.
In November alone, charities raised nearly $2.8 million through gaming activities before paying rent. During the same period, casinos collected approximately $11 million, while the state received $2.2 million. The New Hampshire Lottery Commission’s report reveals that the Gate City Casino in Nashua generated the highest revenue from table games, reaching approximately $1.1 million. On the other hand, The Brook in Seabrook recorded the highest earnings from HHR, totaling around $3.5 million.
Rick Newman, a lobbyist for the NH Charitable Gaming Operators Association, expressed support for the bill, acknowledging the need for reform.
He explained that casino owners were initially permitted to charge rent when charitable gaming was established in 2006. At that time, the maximum bet limit was set at a mere $2, making it impossible for casinos to operate without rental income. However, with the bet limit raised to $50 in July, casino owners can now generate profits without relying on rent fees. Some casinos, such as Aces and Eights in Hampton, have already stopped charging rent, taking advantage of the increased bet limit.
The passing of Senate Bill 112 in the House marks a significant victory for charitable organizations in New Hampshire. This bill prohibits casinos from charging rent to charities, effectively eliminating a major financial burden. The bill received overwhelming support, passing through the House on a voice vote. It will now move on to the Senate, where further discussions and amendments may take place. However, the momentum behind this bill suggests that it is likely to be enacted into law, providing much-needed relief for charities across the state.
Meanwhile, it appears legalizing online casinos in the state won’t be happening in 2024. New Hampshire Senator Tim Lang, who was expected to file an online casino bill for 2024, told Play USA that he won’t be doing so.
Lang remains determined and has expressed his intention to reintroduce the bill in 2025.
