New Hampshire is on the brink of transforming its charitable gaming industry by replacing historical horse racing (HHR) machines with slot machines at 14 casinos statewide. This shift, championed by Governor Kelly Ayotte, promises to boost state revenues and nonprofit funding while reshaping the gaming landscape.
The Current Landscape of Charitable Gaming
New Hampshire’s charitable gaming system is unique, directly benefiting approximately 800 charities annually. Casinos allocate 35% of gross revenue from HHR machines and table games to nonprofits, while the state collects 25%, leaving 40% for operational costs.
Prominent players in this space, like the Nash Casino near the Massachusetts border, operate around 1,000 HHR terminals. Additionally, venues such as the Revo Casino network have distributed over $15 million to around 400 nonprofits in a single year.
Charitable Gaming Revenue in 2025
- March 2025 alone generated $5.7 million for charities and $5.3 million for the state.
- The Revo Casino network distributed $15M to charities last year.
The Proposed Changes: Slot Machine Legalization
The core legislative proposal involves transitioning from HHR machines to slot machines, with Governor Ayotte’s budget outlining the potential for greater efficiency and revenue generation. Slot machines are faster to operate and cost less to maintain, making them an attractive alternative.
Revenue Projections and Impact
- Total state revenue could increase by $128 million by the second budget cycle.
- Charitable organizations might receive $70 million more under the new system.
This shift has the potential to significantly enhance funding for important nonprofit initiatives across New Hampshire while bolstering state finances.
Ensuring Fair Distribution of Funds
To address equity concerns, House Bill 531 has been introduced to cap the maximum funding any single charity can receive from HHRs or games of chance at $50,000. Excess funds would redirect to the state Lottery Commission, potentially increasing state lottery revenue by $18.6 million annually by FY 2026.
Notable statistics from the current funding system:
- 64 charities receiving HHR revenue exceeded $50,000, with a combined excess of nearly $4 million.
- 176 charities receiving games of chance revenue exceeded $50,000, with an excess totaling over $14.6 million.
The Lawmaker Perspective
Legislators have expressed both support and caution regarding the proposed gaming expansion:
- Representative Thomas Schamberg emphasized fairness, stating, “We’re trying to take care of our less fortunate and nonprofits in this state.”
- Representative Mary Murphy supported the financial potential but highlighted the importance of balancing gambling growth with responsible policy.
Conclusion: A Balancing Act
New Hampshire’s move to replace HHR machines with slot machines could reshape its charitable gaming industry. With potential revenues of $128 million for the state and $70 million for nonprofits, the proposal offers significant financial benefits. However, ensuring equitable fund distribution and minimizing social risks remain top priorities as lawmakers move forward.
