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“Gaming in NH Today” Gaming Study Commission September 15, 2009

“Gaming in NH Today” Gaming Study Commission September 15, 2009 . NH Center for Public Policy Studies. Purpose of Presentation. Review Center’s Work 30,000 foot view of existing gaming activities in the state. Gaming Revenues Magnitude Changes over time

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“Gaming in NH Today” Gaming Study Commission September 15, 2009

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  1. “Gaming in NH Today”Gaming Study CommissionSeptember 15, 2009 NH Center for Public Policy Studies

  2. Purpose of Presentation • Review Center’s 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.

  3. 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 What is Gaming?

  4. Legal Wagering by New Hampshire Residents

  5. 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)

  6. 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

  7. 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

  8. 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)

  9. NH Residents gambling outside of NH • In 2007 New Hampshire residents spent $79.3 million at New England’s 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)

  10. 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.

  11. 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.

  12. Gaming about 3% of Unrestricted Revenue

  13. Gaming Revenues as Percent of Total State Revenue

  14. ?

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