New Hampshire to explore adding slot machines to casinos

Unlike traditional slots, HHR machines let players bet on past horse races through a pari-mutuel system. In this system, players wager against each other rather than directly against the machine. These machines have a minimum five-second delay between plays, providing a slower pace than typical slot machines.

A commission reviewing New Hampshire’s charitable gaming industry recently suggested in its report that lawmakers explore the possibility of permitting slot machines in the state’s casinos.

State Sen. Tim Lang of Sanbornton, a member of the gaming committee said the introduction of slot machines would not only generate additional revenue but also lead to cost savings for operators, the state and charities.

Slot machines rely on simpler, less costly technology and algorithms, as players compete against a machine that simply generates random numbers. But historical horse racing machines are more complex. The machine has to tap into a vast database of past horse races, requiring advanced programming.

“We want to make sure that the speed of play is consistent with what’s currently being used in HHR,” said Sen. Lang. “There was some concern amongst the responsible gaming people that it’s a little addictive if it’s allowed at its full throttle speed.”

To allow slot machines in New Hampshire’s casinos, the legislature has to pass a bill.

Before making recommendations, the commission hired Spectrum Gaming Group, a Pennsylvania-based consulting firm, to analyze the evolution of New Hampshire’s gaming industry and compare it with other states.

The company pointed out that New Hampshire’s revenue distribution for table games aligns with national standards, with 35% of the revenue allocated to charities, 10% to the lottery commission, and the remainder retained by the casino. Additionally, the revenue splits for historical horse racing are similarly competitive with those in other states.

New Hampshire has 14 active casinos, with at least four more in the pipeline. However, not every community in the state is on board with this trend. Cities like Nashua are home to multiple casinos, sparking debates about the impact of such establishments on local culture.

This year, House Bill 1223 aimed to give municipalities the power to decide whether to allow casinos within their borders. Though it passed both the Senate and House, it ultimately stalled in the committee of conferences, failing to reach Gov. Chris Sununu’s desk.

Patrick Abrami, chair of the study commission said that, similar to Keno — a lottery-style game that allows municipalities to choose whether to participate — towns and cities should have the option to opt in or opt out of allowing gaming establishments in their areas.

The commission has recommended that the legislature revisit this issue while exempting existing casinos from any new regulations.

“There’s nothing wrong in communities having ordinances about this – whether they want them, or whether they don’t want them,” said Abrami.

Other recommendations include establishing a joint House and State commission to review how charities are selected for casino donation schedules. In 2023, while 800 charities secured spots to receive donations crucial to their operations, many organizations struggled to find openings, and some have yet to partner with any casino.

Currently, casinos hold the reins when selecting which charities or nonprofits make it onto their schedule. While some casinos prefer to work with local groups, the process remains largely unregulated and can feel unpredictable.

Many charities are left in the dark, unsure why they were chosen — or rejected.

Sen. Lang noted that one of the challenges the commission faced while reviewing problem gambling was the lack of data on how many individuals in New Hampshire are seeking help, making it challenging to assess the required resources.

The Lottery Commission will be gathering data for a future commission.

The consultants hired have projected that New Hampshire’s gaming industry could balloon into a $1.1 billion market within just three years, fueled by current revenue trends and an influx of companies establishing casinos in the state.

Originally, the legalization of charitable gaming was intended to be for small, local businesses, but the landscape has shifted dramatically. The introduction of historic horse racing has attracted operators from out of state, leading to casinos being more than just game rooms.

But Sen. Lang said New Hampshire is far from becoming a casino capital.

“The casino destination argument, that ship sailed,” he said. “New Hampshire had its opportunity to have a destination type casino, which it chose not to do that in light of these charitable gaming operations instead.”