New Hampshire Bill Gains Positive Traction

New Hampshire's push to legalize online casino gaming has cleared a significant hurdle in the state Senate, with an amendment that may prove pivotal to the bill's future. The bill, SB 168, has survived the Ways and Means Committee, but not without revisions that include a key change to how gaming revenues will be distributed. The amended version now ensures that charities benefiting from the state’s retail casinos will also see a share of the proceeds from online casino gaming—a move that could prove as crucial to the bill’s passage as it is to the state’s charitable organizations.

Originally introduced by Sen. Tim Lang, SB 168 aimed to establish a legal framework for online gaming in New Hampshire, but it faced early criticism from those concerned that charities, which currently receive a portion of revenue from the state’s brick-and-mortar casinos, might be excluded from online gaming proceeds. Lang, who chairs the Ways and Means Committee, quickly recognized this concern and introduced the amendment during a February 5 hearing.

The new language in SB 168 explicitly allocates a portion of online casino revenue to charities that contract with gaming licensees in the state. While it may seem like a minor adjustment, this provision could prove vital in securing broader support for the bill.

The Revenue Breakdown

The amended version of SB 168 maintains a 45% tax rate on iGaming revenue, a figure consistent with Lang’s original proposal. However, the amendment alters how that tax revenue is distributed, ensuring that charitable organizations will receive a share of the funds generated by online gaming. Under the new structure, 35% of the revenue will go to these charities, with the remaining 65% directed to the state.

The state’s share will be further allocated as follows:

• 50% to the general fund
• 25% to the elderly, disabled, blind, and deaf exemption reimbursement fund
• 25% to a special fund

Lang, who chairs the Ways and Means Committee, noted that the amendment was necessary to correct an oversight in the original draft. By including charities in the online gaming revenue distribution, he sought to demonstrate his commitment to supporting organizations that rely on these funds.

A Welcome Change for Charities

Critics of the original bill had voiced concerns that online gaming would leave charities in the lurch. New Hampshire’s existing retail casinos are required to share a portion of their revenue with charities, and advocates for these organizations feared that the proliferation of online casinos might shift funds away from causes that depend on this revenue.

Before the amendment, SB 168 still required iGaming operators to contract with the state’s brick-and-mortar casinos, thus ensuring charities would get some revenue from the new online market. But the concern remained that the allocation would be insufficient to make up for any losses they might face from the expansion of online gaming.

With the amended bill, charities now have a guaranteed share of 35% of the online casino tax revenue—a significant improvement from the original draft. For these organizations, the amendment means more money flowing into their coffers, providing them with more financial security as the state moves forward with legalizing online gaming. The change could ultimately serve to address one of the most vocal criticisms of SB 168, strengthening Lang’s case for its passage.
Addressing Broader Concerns

While the charity amendment may shore up support for SB 168, there are still hurdles ahead. One of the most significant challenges comes from a 2024 study commissioned by the state and performed by Spectrum Gaming Group. The study recommended that New Hampshire hold off on further expanding its gaming market until 2031, when the current moratorium on new casino licenses expires. The concern is that new gaming markets, whether online or brick-and-mortar, could lead to licensees competing for the same pool of customers, potentially damaging existing revenue streams.

SB 168 still faces significant opposition, and the study’s findings add another layer of complexity to an already contentious debate. Despite these concerns, the Ways and Means Committee's favorable vote on the bill is a crucial first step. With the addition of the charity provision, Lang has addressed one of the bill’s most pressing issues, and this move could help allay some of the doubts surrounding its broader impact.

 

The amendment was necessary to correct an oversight in my draft and ensure the inclusion of charitable organizations in the state.”

 

A Step Toward Passage

SB 168’s journey is far from over. The bill must still clear additional committee reviews before it can proceed to the full Senate for a vote. But with the amendment now in place, Lang’s proposal stands a better chance of overcoming the objections that had initially plagued it.

Should SB 168 pass, it could pave the way for online casino gaming in New Hampshire, marking a significant shift in the state’s gaming landscape. But it will also force state lawmakers to reckon with the challenges of balancing new gaming opportunities with the needs of the charitable organizations that rely on gaming revenues.

For now, supporters of the bill will be watching closely, hoping that the amendment’s inclusion of charities will be enough to push the legislation across the finish line.