“New Hampshire’s Gaming Revolution: Unveiling Casino Transformations and Revenue Surges in 2024”

New Hampshire commenced the year with a transformation in its casino landscape. Concord Casino, one of the state’s 14 establishments, was instructed to close and sell. For charities and nonprofit organizations, this implied even fiercer competition for alliances with casinos to obtain the limited donation opportunities.

In spite of its closure, the charitable gaming sector has been experiencing substantial growth and is anticipated to hit $1 billion in total revenues within three years.

In Nashua, a new casino set to launch at the Pheasant Lane Mall is expected to become the largest in the state. Although Nashua already hosts three casinos, certain communities still oppose the presence of gambling facilities in their areas.

A suggestion allowing communities to choose whether to accept or reject casinos did not pass in the State House this year.

As the new year progresses, it is evident that New Hampshire’s casino environment will undergo numerous modifications — ranging from new legislation aimed at compensating host communities to debates about the financial benefits charities should receive, and even a movement to legalize slot machines.

The allegations claiming that Concord Casino owner Andy Sanborn mishandled COVID relief funds meant for him and then allocated them for personal costs initiated a broader dialogue about New Hampshire’s charitable gaming sector, resulting in some adjustments after years of stability.

The most notable amendment to the regulations governing these gaming venues resulted from a bill that abolished the rental costs charities incurred for a slot in their rotating timetable. These costs, estimated based on “fair market value,” could range between $250 and $750 per game day. The Lottery Commission had not supervised these rental costs. An inquiry revealed that Sanborn, in particular, would retain up to half of what he was required to pay these organizations as rent.

With the new legislation now effective, charities are relieved of these rental obligations and can finally obtain the complete 35% share of casino revenue stipulated by state law.

Another pertinent question is whether a more efficient system could be devised to allow charities to secure a spot at a casino, thereby leveling the competition. Each year, numerous charities face challenges in obtaining a slot, while others consistently seem to secure one.

Lawmakers are expected to establish a study committee to delve into this matter or propose new legislation in the upcoming year to tackle it.

Billion-dollar potential on the horizon

Earnings from games of chance and historical horse racing have surged by 42% in 2024, generating over $32 million compared to just $22.5 million from the previous year.

A consultant hired to evaluate the gaming industry in New Hampshire reported that with the current revenue trajectories and at least four more casinos expected, the industry is likely to evolve into a $1.1 billion market in merely three years.

While legislators are wary of introducing slot machines due to their accelerated pace of play, including them in the existing gaming establishments could further increase revenues. Historical horse racing machines operate at a slower speed than slot machines.

Meanwhile, the state’s Lottery Commission has revoked Sanborn’s gaming license after a state examination revealed that the sale agreement for the South Main Street casino in Concord was substandard. Sanborn is contesting the order, and if he fails, the casino will be inactive for two years.

Sanborn was mandated to shut down his casino and divest the business after being deemed unsuitable for charitable gaming. This ruling came after an investigation uncovered that Sanborn had fraudulently secured and misappropriated $844,000 in pandemic relief funds not designated for casinos.

He was apprehended in October on separate felony theft allegations.

His initiative to establish a 43,000-square-foot casino off Loudon Road is currently halted due to a lawsuit initiated by a nearby landowner, which has ascended to the state Supreme Court.

Sruthi Gopalakrishnan can be contacted at sgopalakrishnan@cmonitor.com