New Hampshire Online Casino Bill Gets Initial Approval in Senate

New Hampshire lawmakers who have been pushing for the legalization of real money online casinos in the Granite State have made some positive developments following a recent hearing that got Senate Bill 168 (SB 168) approved.

The Ways and Means Committee was on hand to discuss SB 168, and legislators came into an agreement to give it a favorable 3-2 vote, but the committee’s endorsement was dependent on an amendment to the distribution of tax revenue.

Namely, part of SB 168’s new language explicitly states that charities that contract with gaming licensees in New Hampshire will get a cut of online casino revenue. That provision could do as much to facilitate the bill’s passage as benefit charities in New Hampshire.

Originally, the bill was criticized since its initial language gave the perception that it was cutting out the charities that receive revenue from the state’s retail casinos. Senator Timothy Lang, the bill’s sponsor, stated that that was never his intent.

What are the Amendments in SB 168?

The amendment that was approved by the committee substitutes the section in Lang’s original draft that specified how tax proceeds from legal iGaming in New Hampshire should be spent. 

Senator Lang noted during the Ways and Means committee’s Feb. 5 hearing on SB 168 that it was a necessary change to correct an oversight in his draft and he wanted to emphasize inclusion of charitable organizations in the state.

The proposal still imposes a 45% tax rate on iGaming revenue but now splits those funds 65%-35%, with charities that contract with gaming licensees in New Hampshire receiving the lesser split. Moreover, the other 65% goes to the state, with the distribution of those funds resembling Lang’s original framework.

The breakdown is as follows:

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

Will SB 168 Become Law?

Following its approval from the Ways and Means Committee, SB 168 is pending reassignment for more consideration before it can potentially proceed to the full Senate floor for a vote.  That said, the amendment from Ways and Means is a good direction for it, as it appears that the bill’s sponsors are willing to play ball with other lawmakers who are keen to dissect and scrutinize SB 168.

Currently, one of the biggest arguments against Lang’s proposal has been that charities that rely on their share of gaming proceeds will see declines in their revenues as a result of legal online casino play. To date, New Hampshire brick-and-mortar gaming facilities need to share revenue with charities.

Part of SB 168 requires iGaming operators to contract with those facilities, ensuring charities a cut of the action before the amendment that Ways and Means added. However, the amendment could increase that revenue and potentially enshrines the 35% threshold.

In the event that SB 168 passes its subsequent Senate hearings, it stands a good chance of being signed. This will make New Hampshire potentially the latest U.S. state to legalize the best online casinos within their territory.