New Hampshire’s Charitable Shift in Gaming Landscape

Concord, NH — New Hampshire’s charitable casinos, a unique feature of the state’s gaming landscape, are facing significant changes. Known for their partnership with nonprofits, these casinos could soon see a shift in the types of games they offer, with the potential introduction of traditional Las Vegas-style slot machines. This change, however, has sparked debates among lawmakers, casino operators, and the charities that benefit from the state’s charitable gaming model.

 

A Move Toward Slots

Currently, New Hampshire’s charitable casinos operate using historic horse racing (HHR) terminals, a form of gambling that replicates the results of past horse races. Under the state's current laws, these casinos benefit charitable causes by contributing 35% of their revenue from table games and HHR to nonprofits. In addition, 25% of the revenue goes to the state, and the remaining 40% stays with the casinos.

Governor Kelly Ayotte has proposed a change that could allow casinos to swap out their HHR terminals for traditional slot machines. According to the Governor, this shift could generate an additional $70 million annually for charitable organizations. Slots offer faster play cycles than HHR machines, allowing for more game rounds per hour and potentially higher revenues for both casinos and the nonprofits they support.

However, not everyone is on board with this idea. Critics argue that slot machines, which have a faster pace and lower operational costs, might reduce the amount of revenue going to charities, as players may opt for slots over table games. Additionally, some worry that the rapid nature of slots could exacerbate gambling problems in the state. The debate over this change is ongoing as lawmakers weigh the potential benefits and risks.

 

• Potential Shift to Slot Machines: New Hampshire may allow casinos to replace historic horse racing terminals with traditional slot machines, potentially increasing revenue for nonprofits by $70 million annually.

• Donation Caps for Charities: A proposed bill could cap the amount any single charity receives from charitable gaming at $50,000 per year, aiming to ensure more equitable distribution of funds.

• Recent Legislative Changes: New laws have raised betting limits and eliminated casino rent charges for charities, aimed at increasing funds for nonprofits and broadening the impact of charitable gaming.

 

The Impact of Donation Caps

Alongside the potential shift to slot machines, New Hampshire lawmakers are also considering House Bill 531, which would impose caps on the amount any single charity can receive from charitable gaming. If passed, this bill would limit donations to a maximum of $50,000 annually for any one nonprofit.

Supporters of the bill argue that this cap would ensure a more equitable distribution of funds among the many charities that benefit from charitable gaming in the state. Currently, some charities receive much more than others, and advocates believe that spreading the funds more evenly would allow for broader support of smaller organizations.

However, many nonprofits are concerned about the potential negative impact of these caps. For example, My Friend’s Place, a homeless shelter in Dover, received $135,000 last year through charitable gaming. If the cap were implemented, this amount would be cut by more than half, significantly hindering the shelter’s ability to provide services.

In recent years, New Hampshire has seen several changes in its charitable gaming laws. In June 2023, Governor Chris Sununu signed legislation that increased the maximum allowable bet for table games from $10 to $50, and the maximum loss from $150 to $2,500. These changes were aimed at increasing revenue for both casinos and the charities they support.

Furthermore, in 2024, New Hampshire passed Senate Bill 112, which prohibits casinos from charging charities rent to use their gaming facilities. This move is expected to free up more funds for nonprofit organizations and help them make better use of the gaming opportunities available. Another piece of legislation, Senate Bill 472, allows host communities to share in the charitable gaming revenue, broadening the pool of beneficiaries.

 

Organizations like ours and many of my peer nonprofits that are here today rely on this money to meet essential needs that would otherwise fall to state and local government.

 

Looking Toward the Future

The discussion around charitable gaming in New Hampshire highlights a delicate balancing act between boosting revenue for nonprofits and ensuring that the gaming system remains fair and sustainable. As lawmakers continue to consider the potential introduction of slot machines and the imposition of donation caps, the future of New Hampshire’s charitable casinos remains uncertain.

One thing is clear: the state’s gaming industry, already a crucial source of funding for hundreds of nonprofits, could see significant changes in the coming years. The outcome of these legislative proposals will shape the future of charitable gaming in New Hampshire and determine how these casinos continue to support the organizations that rely on their funding.