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Gaming in NH TodayGaming Study
CommissionSeptember 15, 2009
NH Center for Public Policy Studies
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Purpose of Presentation

• Review Centers Work
• 30,000 foot view of existing gaming activities in
  the state.
• Gaming Revenues
• Magnitude
• Changes over time
• Set stage for more in depth conversations.

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What is Gaming?

• Lottery (Powerball/ Megabucks)
• Scratch tickets
• Poker games
• Games of chance
• Dog and Horse Racing
• Pari-mutuel wagering
• Casinos
• Bingo/Lucky 7
• Gray Machines Poker
• Office Betting Pools

• Issues to Consider
• Legal/Illegal
• In/Out of State
• On-Line
• Authority and ability to control
• Accuracy of Data

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Legal Wagering by New Hampshire Residents
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State Lottery

• The games run under the direction of the NH
  Lottery Commission brought in 261 million in
  FY2008 (total sales).
• Prizes were 155 million and total expense were
  (31 million).
• 75 million (261-186) was distributed to
  education trust fund in FY2008.
• Change over time?
• NH Lottery Revenue declined by 1.1 from 2007 to
  2008.
• Instant game revenue was down 4.5 million, Hot
  Lotto down by 1.1 million, but Powerball was up
  by 2 million. (Source NH Lottery CAFR2008)

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State Lottery

• Breakdown of 261 million in Lottery receipts in
  FY2008 by major game (excludes NH residents
  purchasing out of state)
• Instant Games (scratch tickets) 184 million
• Powerball 46.4 million
• TriState Megabucks 10.5 million
• Tri State Daily Pick 3 Pick 4 10.5 million
• Tri State Other Games 5.8 million
• Hot Lotto and MUSL Games 3.5 million

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Racing/Charitable Gaming Wagers in 2008

• Live dog and horse racing, pari-mutel
• Live racing 4.5 m
• pari-mutuel wagers 220.5 m
• Gaming for Charitable Organizations
• Bingo 17m
• Lucky-7 Tickets 64 m
• Charitable Games of Chance 45m
• For a total of 352 million in racing and gaming
  wagers

Source 2008 Racing and Charitable Gaming
Commission report
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Racing/Charitable Gaming Revenue

• State revenue after expenses collected.
• Simulcast wagering - 2.1m
• Live Racing - 0.2m
• Bingo - 1.3m
• Games of Chance 0.6m
• Change?
• Racetrack pari-mutuel activities 2007-2008 20
  reduction.
• State revenue from gaming activities for the year
  2008 increased from 2007 by 33 mainly due to the
  new Games of Chance assessment fee that impacted
  the second half of the year.
• New Hampshire charities received over 11.6
  million dollars to further their causes in 2008
  from all charitable gaming. (Commission report)

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NH Residents gambling outside of NH

• In 2007 New Hampshire residents spent 79.3
  million at New Englands gaming facilities,
  indirectly paying 11.3 million in gaming and
  sales taxes to CT, RI and ME (source
  UMASS/Dartmouth 9/16/2008)
• 46 million at Foxwoods
• 30 million at Mohegan Sun
• 2.5 million at Twin River (RI)
• 0.2 million at Newport Grand (RI)
• 0.8 million at Hollywood (ME)
• Does not include gaming outside of New England
  (Atlantic City, Las Vegas)

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Estimates of Gambling Winnings

• In the 2009 session the Legislature imposed a new
  tax of 10 percent on
• (a) Gambling winnings of New Hampshire residents
  from anywhere derived. (based on IRS form W2G)
• (b) Gambling winnings of nonresidents of New
  Hampshire derived from New Hampshire entities.
• DRA The Gambling Winnings tax is estimated to
  yield 5.9 million in FY2010, 7.9 million in
  FY2011 (from HB1)
• Base gambling winnings in NH are estimated at
  59 million in 2010 and 79 million in 2011.
• Assume that reported winnings represent 5-10
  Percent of all (legal) wagers, according to DRA
  estimate total (legal) wagers by NH residents
  could be as high as 1billion.

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Summary

• State relationship to wagering varies
  considerably.
• Lottery (State run keep the difference between
  revenue and expenses)
• Racing (Private enterprise state keeps a
  percentage of activity)
• Charitable Gaming (Private enterprise state
  keeps a percentage of activity).
• Legal wagering by NH residents estimated at 750
  million to 1 billion per year - not including
  non New England gambling, and illegal wagering
  (online, office pools, gray club machines etc.)
• State takes in about 80 million per year, most
  of that from the NH Lottery.
• Represents 3.2 of unrestricted revenues.

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Gaming about 3 of Unrestricted Revenue
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Gaming Revenues as Percent of Total State Revenue
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