SB 551-FN-A-LOCAL - AS INTRODUCED
2016 SESSION
\t16-2733
\t08/04
SENATE BILL\t551-FN-A-LOCAL
AN ACT\testablishing video lottery and table gaming at one location.
SPONSORS:\tSen. D'Allesandro, Dist 20; Sen. Soucy, Dist 18; Sen. Lasky, Dist 13; Sen. Morse, Dist 22; Sen. Woodburn, Dist 1; Rep. Estevez, Hills. 37
COMMITTEE:\tWays and Means
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ANALYSIS
\tThis bill enables the lottery commission to license one casino providing video lottery machines and table gaming at Rockingham Park in Salem.
\tThis bill also distributes proceeds from gross slot machine income and gross table game income to reimburse the gaming regulatory oversight authority for certain expenses and to pay for the operation of the gaming commission, to the town of Salem, those communities abutting the town of Salem, Rockingham county, the department of health and human services to support addiction programs to cities and towns under the revenue sharing agreement, and the gaming regulatory fund.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2733
\t08/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\testablishing video lottery and table gaming at one location.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 New Chapter; Video Lottery and Table Games. Amend RSA by inserting after chapter 284-A the following new chapter:
CHAPTER 284-B
VIDEO LOTTERY AND TABLE GAMES
\t284-B:1 Authorization to Operate Casino Gaming.
\t\tI. The lottery commission may conduct and control video lottery games.
\t\tII. State-operated casino gaming may be authorized at the facility of the pari-mutuel licensee known as “Rockingham Park” located in the town of Salem provided that local approval is obtained in accordance with RSA 284-B:13.
\t\tIII. With respect to the “Rockingham Park” facility, this chapter shall be effective upon the certification by the secretary of state to the lottery commission that the qualified voters of town of Salem have approved the expansion of gambling at such facility to include casino gaming pursuant to RSA 284-B:13.
\t284-B:2 Definitions. In this chapter:
\t\tI. “Casino gaming” means any table and casino-style games played with cards, dice, or equipment, for money, credit, or any representative of value; including, but not limited to, roulette, blackjack, big six, craps, poker, baccarat, paigow, any banking or percentage game, or any other game of device included within the definition of Class III gaming as that term is defined in 25 U.S.C. Section 2703(8) and that is approved by the state through the lottery commission.
\t\tII. “Central communication system” means a system approved by the lottery commission, linking all video lottery machines at a licensee location to provide auditing program information and any other information determined by the lottery commission.
\t\tIII. “Cheat” means to alter the element of chance, method of selection, or criteria which determines:
\t\t\t(a) The result of the game.
\t\t\t(b) The amount or frequency of payment in a game, including intentionally taking advantage of a malfunctioning machine.
\t\t\t(c) The value of a wagering instrument.
\t\t\t(d) The value of a wagering credit.
\t\tIV. “Cheating device” means any physical, mechanical, electromechanical, electronic, photographic, or computerized device used in such a manner as to cheat, deceive or defraud a casino game including, but not limited to:
\t\t\t(a) Plastic, tape, string, or dental floss, or any other item placed inside a coin or bill acceptor or any other opening in a video lottery terminal in a manner to simulate coin or currency acceptance;
\t\t\t(b) Forged or stolen keys used to gain access to a casino game to remove its contents; or
\t\t\t(c) Game cards or dice that have been tampered with, marked, or loaded.
\t\tV. “Credit facilitator” means any employee of Rockingham Park approved in writing by the lottery commission whose responsibility is to review applications for credit by players, verify information on credit applications, grant, deny, or suspend credit, establish credit limits, increase and decrease credit limits, and maintain credit files, all in accordance with this chapter and rules adopted by the lottery commission.
\t\tVI. “Net terminal income” means currency placed into a video lottery terminal less credits redeemed for cash by players.
\t\tVII. “Net table game revenue” means winnings from table games minus counterfeit currency.
\t\tVIII. “Paraphernalia for the manufacturing of cheating devices” means the equipment, products, or materials that are intended for use in manufacturing, producing, fabricating, preparing, testing, analyzing, packaging, storing, or concealing a counterfeit facsimile of the chips, tokens, debit instruments, or other wagering devices approved by the lottery commission or lawful coin or currency of the United States of America including, but not limited to:
\t\t\t(a) Lead or lead alloy molds, forms, or similar equipment capable of producing a likeness of a gaming token or United States coin or currency.
\t\t\t(b) Melting pots or other receptacles.
\t\t\t(c) Torches, tongs, trimming tools, or other similar equipment.
\t\t\t(d) Equipment that can be used to manufacture facsimiles of debit instruments or wagering instruments approved by the lottery commission.
\t\tX. “Rake” means a set fee or percentage of cash and chips representing cash wagered in the playing of a nonbanking table game assessed by a table games retailer for providing the services of a dealer, gaming table or location, to allow the play of any nonbanking table game.
\t\tXI. “Table game” or “table gaming” means that type of casino gaming in which table games are played for cash or chips representing cash or any other representation of value that has been approved by the lottery commission, using cards, dice, or equipment and conducted by one or more live persons.
\t\tXII. “Rockingham Park” means a retailer authorized to conduct table gaming pursuant to this chapter.
\t\tXIII. “Technology provider” means any individual, partnership, corporation, or association that designs, manufactures, installs, maintains, distributes, or supplies video lottery machines or associated equipment for the sale or use in this state.
\t\tXIV. “Video lottery games” means lottery games played on video lottery terminals approved by the lottery commission.
\t\tXV. “Video lottery terminal” means any electronic computerized video game machine that, upon the insertion of cash or any other representation of value, that has been approved by the lottery commission, is available to play a video game authorized by the lottery commission, and that uses a video display and microprocessors in which, by chance, the player may receive free games or credits that can be redeemed for cash. This term does not include a machine that directly dispenses coins, cash, or tokens.
\t\tXVI. “Wager” means a sum of money or representative of value that is risked on an occurrence for which the outcome is uncertain.
\t284-B:3 Lottery Commission; Authority.
\t\tI. The lottery commission shall have full control to operate the Rockingham Park facility, the authority to make all decisions about all aspects of the functioning of the business enterprise, including the power and authority to:
\t\t\t(a) Establish, with respect to casino gaming, one or more systems for linking, tracking, depositing and reporting of receipts, audits, annual reports, prohibitive conduct and other such matters determined from time to time.
\t\t\t(b) Collect all receipts from casino gaming, require that Rockingham Park collect casino gaming gross receipts in trust for the state through the lottery commission, deposit such receipts into an account or accounts of its choice, allocate such receipts according to law, and otherwise maintain custody and control over all casino gaming receipts and funds.
\t\t\t(c) Hold and exercise sufficient powers over Rockingham Park’s accounting and finances to allow for adequate oversight and verification of the financial aspects of casino gaming at the facility, including:
\t\t\t\t(1) The right to require Rockingham Park to maintain an annual balance sheet, profit and loss statement, and any other necessary information or reports; and
\t\t\t\t(2) The authority and power to conduct periodic compliance or special or focused audits of the information or reports provided, as well as the premises with the facility containing records of casino gaming or in which the business of Rockingham Park’s casino gaming operations are conducted.
\t\t\t(d) Monitor all casino gaming operations and to terminate or suspend any casino gaming activities in the event of an integrity concern or other threat to the public trust, and in furtherance thereof, require the licensed video lottery retailer to provide a specified area or areas from which to conduct such monitoring activities.
\t\t\t(e) Have approval rights over matters relating to the employment of individuals to be involved, directly or indirectly, with the operation of casino gaming at Rockingham Park.
\t\t\t(f) Establish compulsive gambling treatment programs.
\t\tII. Supervise and administer the operation of video lottery games in accordance with this chapter and with the rules of the lottery commission.
\t\tIII. Suspend or revoke upon a hearing any license issued pursuant to this chapter or the rules adopted in accordance with chapter.
\t\tIV. In compliance with the provisions of RSA 21-I, submit requests for proposals, select vendors, and enter into contracts for the operation of a central communications system and technology providers, or any part thereof.
\t\tV. Certify monthly to the legislative budget assistant, state treasurer, the gaming oversight commission, and to the governor a full and complete statement of lottery revenues, prize disbursements, and other expenses for the preceding month; ensure that monthly financial reports are prepared providing gross monthly revenues, prize disbursements, other expenses, and net income for keno and for all other lottery operations; submit this report to the legislative budget assistant, gaming regulatory oversight authority, the fiscal committee of the general court, and the governor no later than the twentieth business day following the close of the month; at the end of each fiscal year the director shall submit an annual report based upon an accrual system of accounting which shall include a full and complete statement of lottery revenues, prize disbursements and expenses, to the governor and the general assembly, which report shall be a public document and shall be filed with the secretary of state. The monthly report shall be prepared in a manner prescribed by the members of the revenue estimating conference.
\t284-B:4 Lottery Commission; Rulemaking. The lottery commission shall adopt rules, under RSA 541-A relative to:
\t\tI. The rules of play and odds of authorized casino gaming games, including, without limitation, the minimum and maximum wagers for each casino gaming game.
\t\tII. Control, operation, and management of casino gaming.
\t\tIII. Accounting procedures for determining the net terminal income from lottery video terminals, and unclaimed prizes and credits.
\t\tIV. The type of video lottery games to be conducted.
\t\tV. The price to play each game and the prizes or credits to be awarded.
\t\tVI. Financial reporting procedures for Rockingham Park and control procedures in the event that it should become insolvent.
\t\tVII. Insurance and bonding by:
\t\t\t(a) Rockingham Park; and
\t\t\t(b) Technology provider.
\t\tVIII. The contracting with technology providers.
\t\tIX. Establishing an information system, operating procedures, reporting and accounting criteria in order to comply with the provisions of this chapter.
\t\tX. State-operated table gaming and the policy for such table games including, but not limited to:
\t\t\t(a) Establishing standards and procedures for table gaming and associated equipment.
\t\t\t(b) Establishing standards, rules, and regulations to govern the conduct of table games and the system of wagering associated with table games, including without limitation:
\t\t\t\t(1) The object of the table game and method of play, including what constitutes win, loss, or tie bets.
\t\t\t\t(2) Physical characteristics of the table games and table game equipment.
\t\t\t\t(3) Wager and payout odds for each type of available wager.
\t\t\t\t(4) The applicable inspection procedures for any of the following, as required by a table game:
\t\t\t\t\t(A) Cards.
\t\t\t\t\t(B) Dice.
\t\t\t\t\t(C) Wheels and balls.
\t\t\t\t\t(D) Other devices, equipment, and accessories related to table games.
\t\t\t(c) Procedures for the collection of bets and payouts, including requirements for internal revenue service purposes.
\t\t\t(d) Procedures for handling suspected cheating or table gaming irregularities.
\t\t\t(e) Procedures for handling any defective or malfunctioning table game equipment.
\t\tXI. Establishing the method for calculating net table game revenue and standards for the daily counting and recording of cash received in the conduct of table games, and ensuring that internal controls are followed, including the maintenance of financial books and records and the conduct of annual audits at the expense of Rockingham Park.
\t\tXII. Establishing any table game rule changes, table game minimum and maximum wager changes, and changes to the type of table game being offered at a particular gaming table, including any notice by Rockingham Park to the public.
\t\tXIII. Prohibiting any table game equipment from being possessed, maintained or exhibited by any person on the premises of Rockingham Park’s facility except in the areas of such facility where the conduct of table games is authorized or in a restricted area designated to be used for the inspection, service, repair, or storage of table game equipment by Rockingham Park or in an area used for employee training and instruction by Rockingham Park.
\t\tXIV. Ensuring that drop boxes are brought into or removed from an area where table games are conducted or locked or unlocked in accordance with procedures established by the lottery commission.
\t\tXV. Designating secure locations for the inspection, service, repair, or storage of table game equipment and for employee training and instruction to be approved by the lottery commission.
\t\tXVI. Establishing the size and uniform color by denomination of table game chips used in the conduct of table games, including tournaments, and a policy for the use of promotional or commemorative chips used in the conduct of certain table games. All types of table game chips shall be approved by the lottery commission prior to being used for play at a table game.
\t\tXVII. Establishing the procedure to be used by Rockingham Park to determine and extract a rake for the purposes of generating net table game revenue from nonbanking games.
\t\tXVIII. Establishing minimum standards relating to the acceptance of tips or gratuities by dealers at a table game, including:
\t\t\t(a) The requirement that tips or gratuities accepted by dealers at banking table games be placed in a common pool for complete distribution pro rata among all dealers based on the daily collection of such tips or gratuities; provided however, the lottery commission may establish an alternative distribution method for tips or gratuities at a banking table game upon submission by Rockingham Park of a proposal acceptable to the division to modify the existing distribution method for tips or gratuities.
\t\t\t(b) The requirement that tips or gratuities accepted by dealers at nonbanking table games are not required to be pooled and may be retained by the dealers; provided however, the lottery commission may establish an alternative distribution method for tips or gratuities at a nonbanking table game upon submission by Rockingham Park of a proposal acceptable to the division to modify the existing distribution method for tips or gratuities.
\t\tXIX. Establishing the minimal proficiency requirements for table game personnel, including without limitation table game dealers.
\t\tXX. Establishing the practices and procedures governing the conduct of table game tournaments.
\t\tXXI. Establishing appropriate eligibility requirements and standards for traditional table game equipment suppliers.
\t\tXXII. Operations of credit facilitators.
\t284-B:5 Licensing of Technology Providers.
\t\tI. The lottery commission, pursuant to this section, shall license technology providers capable of interfacing with a central communications system controlled by the lottery commission.
\t\tII. In making its licensing decision, the lottery commission shall select providers based on the following factors:
\t\t\t(a) Experience in performing comparable projects.
\t\t\t(b) Financial stability.
\t\t\t(c) Technical and management abilities.
\t\t\t(d) The quality of the product and service capabilities.
\t\t\t(e) Likelihood of timely performance.
\t\t\t(f) Maximum revenue generation.
\t\t\t(g) Ability to pass a background investigation.
\t\t\t(h) Any other factors found by the lottery commission to be relevant to performance.
\t\tIII. The lottery commission shall require criminal background checks of license applicants as it deems appropriate and said applicants shall apply to the attorney general for a national criminal records check with fingerprinting. The applicant whose criminal records check is being conducted shall be responsible for the payment of the costs of said criminal records check. The attorney general shall send the results of such criminal records check to the lottery commission. Once said results are received by the lottery commission, the attorney general shall promptly destroy said fingerprint records.
\t\tIV. All video lottery machines shall be linked under a central communications system to provide auditing program information as approved by the lottery commission. The communications system approved by the lottery commission shall not limit participation to only one manufacturer of video lottery machines by either cost of implementing the necessary program modifications to communicate or the inability to communicate with the central communication system.
\t284-B:6 Central Computer System.
\t\tI. Pursuant to an open competitive bidding process conducted in accordance with the provisions of RSA 21-I, the commission shall acquire and operate a central computer system into which all video lottery machines shall be connected.
\t\tII. Any central computer system acquired and operated by the commission shall be capable of:
\t\t\t(a) Continuously monitoring, retrieving, and auditing the operations, financial data, and program information of all slot machines.
\t\t\t(b) Allowing the commission to account for all money inserted in and payouts made from a slot machine.
\t\t\t(c) Disabling from operation or play a slot machine as the commission deems necessary to carry out the provisions of this chapter.
\t\t\t(d) Supporting and monitoring a progressive jackpot system capable of operating one or more progressive jackpots.
\t\t\t(e) Providing any other function that the commission considers necessary.
\t\tIII. The central computer system shall employ a widely accepted gaming industry communications protocol, as approved by the Gaming Standards Association, to facilitate the ability of slot machine manufacturers to communicate with the central computer system.
\t\tIV. Except as provided in paragraph II(b), the commission shall not permit a gaming licensee to have access to, or obtain information from, the central computer system unless it determines that such access does not in any way affect the integrity or security of the central computer system and is relevant to the legitimate operation of its slot machines.
\t284-B:7 Rockingham Park Operations. Rockingham Park shall:
\t\tI. Provide written information at each table game about game rules, payoffs, or winning wagers and other information as the lottery commission may require.
\t\tII. Provide specifications approved by the lottery commission to integrate and update Rockingham Park’s surveillance system to cover all areas where table games are conducted and other areas as required by the lottery commission. The specifications shall include provisions providing the lottery commission and other persons authorized by the lottery commission with onsite access to the system.
\t\tIII. Ensure that visibility in Rockingham Park’s facility shall not obstructed in any way that could interfere with the ability of the lottery commission, Rockingham Park, or other persons authorized under this chapter or by the lottery commission to oversee the surveillance of the conduct of table games.
\t\tIV. Ensure that the count room for table gaming shall have appropriate security for the counting and storage of cash.
\t\tV. Provide each table game with a sign acceptable to the lottery commission indicating the permissible minimum and maximum wagers at the table game.
\t\tVI. Reimburse and pay to the lottery commission all reasonable costs and expenses associated with the lottery commission’s review of the business or operations of Rockingham Park, including, but not limited to, such items as ongoing auditing, legal, investigation services, compulsive and problem gambling programs, and other related matters.
\t\tVII. Provide secure, segregated facilities as required by the lottery commission on the premises for the exclusive use of the lottery commission staff and the state police. Such space shall be located proximate to the gaming floor and shall include surveillance equipment, monitors with full camera control capability, as well as other office equipment that may be deemed necessary by the lottery commission. The location and size of the space shall be subject to the approval of the lottery commission.
\t284-B:8 Gaming Credit Authorized.
\t\tI. The lottery commission shall authorize Rockingham Park to extend credit to players pursuant to this chapter.
\t\tII. Except for applicable licensing laws and regulations, Rockingham Park may extend interest-free, unsecured credit to its patrons for the sole purpose of such patrons making wagers at table games or video lottery terminals at the Rockingham Park facility subject to the requirements of this chapter.
\t\tIII. Within 90 days of the effective date of this section, Rockingham Park shall submit to the lottery commission, for review and approval, proposed rules regarding the establishment of procedures governing a program for the extension of credit and requirements with respect to a credit applicant’s financial fitness including, without limitation, annual income, debt-to-income ratio, prior credit history, average monthly bank balance, or level of play. The lottery commission may approve, approve with modification, or disapprove any portion of the policies and procedures submitted for review and approval.
\t\tIV. Each applicant for credit shall submit a written application to Rockingham Park that shall be maintained by Rockingham Park for 3 years in a confidential credit file. The application shall include the patron’s name, address, telephone number, social security number, comprehensive bank account information, the requested credit limit, the patron’s approximate amount of current indebtedness, the amount and source of income in support of the application, the patron’s signature on the application, a certification of truthfulness, and any other information deemed relevant by Rockingham Park or the lottery commission.
\t\tV. As part of the review of a credit application and before an application for credit is approved, Rockingham Park shall verify:
\t\t\t(a) The identity, creditworthiness, and indebtedness information of the applicant by conducting a review of:
\t\t\t\t(1) The information submitted with the application.
\t\t\t\t(2) Indebtedness information regarding the applicant received from a credit bureau.
\t\t\t\t(3) Information regarding the applicant’s credit activity at other licensed facilities that Rockingham Park may obtain through a casino credit bureau and, if appropriate, through direct contact with other casinos.
\t\t\t(b) That the applicant’s name is not included on an exclusion or self-exclusion list maintained by Rockingham Park or the lottery commission.
\t\t\t(c) As part of the credit application, Rockingham Park shall notify each applicant in advance that Rockingham Park will verify the information in subparagraphs (a)(1) and (a)(2) and may verify any other information provided by the applicant as part of the credit application. The applicant shall acknowledge in writing that he or she understands that the verification process will be conducted as part of the application process and that he or she consents to having said verification process conducted.
\t\tVI. After a review of the credit application and upon completion of the verification required under paragraph V, and subject to the rules and regulations approved by the lottery commission, a credit facilitator may approve or deny an application for credit to a player. The credit facilitator shall establish a credit limit for each patron to whom credit is granted. The approval or denial of credit shall be recorded in the applicant’s credit file that shall also include the information that was verified as part of the review process, and the reasons and information relied on by the credit facilitator in approving or denying the extension of credit and determining the credit limit. Subject to the rules and regulations approved by the lottery commission, increases to an individual’s credit limit may be approved by a credit facilitator upon receipt of written request from the player after a review of updated financial information requested by the credit facilitator and re-verification of the player’s credit information.
\t\tVII. Detailed information pertaining to all transactions affecting an individual’s outstanding indebtedness to Rockingham Park shall be recorded in chronological order in the individual’s credit file. The financial information in an application for credit and documents related thereto shall be confidential. All credit application files shall be maintained by Rockingham Park in a secure manner and shall not be accessible to anyone who is not a credit facilitator or a Rockingham Park manager or officer responsible for the oversight of the extension of credit program.
\t\tVIII. A credit facilitator may reduce a player’s credit limit or suspend his or her credit to the extent permitted by the rules and regulations approved by the lottery commission.
\t\tIX. A player may request that Rockingham Park suspend or reduce his or her credit. Upon receipt of a written request to do so, the player’s credit shall be reduced or suspended as requested. A copy of the request and the action taken by the credit facilitator shall be placed in the player’s credit application file.
\t\tX. In the event that a player fails to repay a debt owed to Rockingham Park resulting from the extension of credit by Rockingham Park, neither the state of New Hampshire nor the lottery commission shall be responsible for the loss and said loss shall not affect net table game revenue or net terminal income. Rockingham Park, the state of New Hampshire, the lottery commission, and any employee of Rockingham Park, shall not be liable in any judicial or administrative proceeding to any player, any individual, or any other party, including table game players or individuals on the voluntary suspension list, for any harm, monetary or otherwise, that may arise as a result of:
\t\t\t(a) Granting or denial of credit to a player.
\t\t\t(b) Increasing the credit limit of a player.
\t\t\t(c) Allowing a player to exercise his or her right to use credit as otherwise authorized.
\t\t\t(d) Failure of Rockingham Park to increase a credit limit.
\t\t\t(e) Failure of Rockingham Park to restore credit privileges that have been suspended, whether involuntarily or at the request of the table game patron.
\t\t\t(f) Permitting or prohibiting an individual whose credit privileges have been suspended, whether involuntarily or at the request of the player, to engage in gaming activity in a licensed facility while on the voluntary credit suspension list.
\t\tXII. For any extensions of credit, the maximum amount of outstanding credit per player shall be $50,000.
\t284-B:9 Powers of the Division of State Police Gaming Enforcement Unit.
\t\tI. The commissioner of safety acting through the division of state police, gaming enforcement unit established in RSA 21-P:7-d, may take such actions as may be necessary in his or her judgment to fulfill the responsibilities of the division of state police under this chapter and the rules adopted pursuant thereto.
\t\tII. The division of state police gaming enforcement unit shall have primary law enforcement authority over the gaming floor and restricted areas in the gaming location. It shall have concurrent law enforcement authority over all other areas of the gaming location with the local law enforcement agency having the primary enforcement responsibility.
\t\tIII. The division of state police and its gaming enforcement unit shall:
\t\t\t(a) Ensure the timely processing of fingerprints and criminal history record checks in connection with a license application registration, permit or other authorization required pursuant to this chapter.
\t\t\t(b) Notwithstanding RSA 106-B:15, investigate alleged criminal activity and criminal violations involving the gaming floor and restricted areas of a gaming location.
\t\t\t(c) Notwithstanding RSA 106-B:15, receive and investigate with regard to any referral by the commission, a host community or other person relating to alleged criminal activity and criminal violations involving the gaming floor and restricted areas of a gaming location.
\t\t\t(d) Participate in any hearing conducted by the lottery commission.
\t\t\t(e) Provide advice and assistance, upon request or on his or her motion, to the commission in the adoption of rules.
\t\t\t(f) Recommend, with respect to persons to be placed on a list of excluded persons to be maintained by the lottery commission.
\t\t\t(g) Discharge other responsibilities as may be provided in law.
\t\tIII. The division of state police gaming enforcement unit shall be present at a gaming location, at such times, under such circumstances, and to such extent as it deems appropriate to fulfill its responsibilities under this chapter.
\t\tIV. The lottery commission shall notify the division of state police gaming enforcement unit of any known or suspected criminal law violations that are related in any way to implementation and enforcement of the provisions of this chapter. Notwithstanding any provisions relating to the confidentiality of any information acquired under this chapter, the lottery commission shall share such information with the division of state police gaming enforcement unit as may be deemed necessary by the commissioner of safety to ensure compliance with the provisions of this chapter.
\t\tV. The lottery commission, the division of state police gaming enforcement unit, and the attorney general shall cooperate on the regulatory and criminal implementation and enforcement of this chapter, which efforts shall include cooperation with municipal and county attorney offices and with local law enforcement.
\t284-B:10 Employees and Contractors.
\t\tI. The lottery commission, the attorney general, and the division of state police gaming enforcement unit may contract for such legal, financial, economic, or security consultants, and any other technical and professional services as it deems necessary for the discharge of its duties under this chapter.
\t\tII. The lottery commission may employ certain assistants, and contract with certain individuals or entities experienced in the regulation of gaming to carry out the provisions of this chapter. Such assistants and employees shall receive compensation at rates to be established by the department of administrative services, division of personnel.
\t284-B:11 Annual Report to the General Court.
\t\tI. No later than November 1 of each year, the lottery commission shall provide a report to the fiscal committee of the general court regarding the generation of revenues of video lottery machines and table games by Rockingham Park.
\t\tII. The legislative budget assistant, and any expert consultants hired to assist the legislative budget assistant in carrying out his or her duties, shall have access to any information, including confidential information, the legislative budget assistant may request for the purpose of conducting audits of the commission pursuant to RSA 14:31-a. If the legislative budget assistant or any expert consultant requires access to confidential information, the commission shall furnish the information and the legislative budget assistant or any expert consultant shall be subject to the same restrictions and penalties regarding the disclosure of the information as the original custodian of the information. This paragraph shall not be construed to authorize disclosure to any member of the legislature. Any confidential information provided to the legislative budget assistant under this section shall be subject to the provisions of RSA 14:31, IV.
\t284-B:12 Gaming License; Rockingham Park. The lottery commission shall award one gaming license to the pari-mutuel facility at Rockingham Park in Salem for:
\t\tI. The operation of no more than 160 table games and no fewer than 80 table games; and
\t\tII. The operation of no more than 3,500 slot machines and no fewer than 2,000 video lottery machines.
\t284-B:13 Procedures for Adoption.
\t\tI. The town of Salem may adopt the provisions of RSA 284-B to allow the operation of video lottery machines and table games in the following manner:
\t\t\t(a) Upon request of Rockingham Park to authorize the operation of video lottery machines and table games at its facility located within Salem in accordance with the provisions of RSA 284-B, the town governing body shall place the question on the ballot to be voted upon at the next regularly scheduled municipal or biennial election unless such election is more than 90 days from the request. In such circumstance, the town governing body shall place the question on the ballot for a special election called for the purpose of voting on said question and which special election shall occur within 75 days after the request is made. Such special election shall be held at the usual ward polling places by the regular election officials.
\t\t\t(b) If a majority of those voting on the question vote “Yes,” RSA 284-B shall apply in Salem and the operation of video slot machines and table games shall be permitted at Rockingham Park in Salem in accordance with RSA 284-B. If a majority of those voting on the question vote “No” the question may be voted on at a subsequent time in accordance with this section provided, however, the town of Salem may consider the question at no more than one special election and a regular municipal or biennial election in the same calendar year after a “No” vote.
\t\t\t(c) The wording of the question shall be substantially as follows: “Shall the town of Salem adopt the provisions of RSA 284-B allowing the operation of video lottery machines and table games at Rockingham Park in Salem”?
\t\tII. If Rockingham Park requests action under paragraph I, Rockingham Park shall pay all costs associated with carrying out the actions under this section.
\t284-B:14 Gaming License Fees; License Term.
\t\tI. The lottery commission shall collect, in conjunction with a gaming license application, a nonrefundable gaming license application fee in the amount of $400,000 to cover the cost of processing and reviewing an application. If the cost of processing and reviewing the application exceeds the amount of the initial application fee, the commission may impose upon the applicant an additional fee sufficient to cover any documented shortfall which the applicant shall pay to the commission within 15 days of the date of an invoice. The amount shall be deposited in the gaming regulatory fund and shall be available to the state in the fiscal year received.
\t\tII. The lottery commission shall collect in conjunction with a gaming license application, and transmit to the attorney general, a nonrefundable gaming license investigation fee in the amount of $100,000 to cover the cost of the background investigation. If the cost of the background investigation exceeds the amount of the initial application fee, the commission may impose upon the applicant an additional fee sufficient to cover any documented shortfall which the applicant shall pay to the commission, for transmission to the attorney general, within 15 days of the date of an invoice. The amount shall be deposited in the gaming regulatory fund and shall be available to the state in the fiscal year received.
\t\tIII. Upon an award of a gaming license, the lottery commission shall collect an initial license fee in the amount of $80,000,000. Such fees shall be paid to the gaming regulatory fund within 30 days of the award of the license.
\t\tIV. Upon payment of a license fee by a Rockingham Park under this chapter, the lottery commission shall fully reimburse funds received:
\t\t\t\t(1) By the commission from activities authorized by RSA 284, RSA 287-D, RSA 287-E, and RSA 287-F in proportion to the expenses incurred by the commission from each such activity in the administration of this chapter as authorized by RSA 284-B:3, VII(a), prior to the payment of the license fee.
\t\t\t\t(2) By the gaming regulatory oversight authority from activities authorized by RSA 284 and RSA 287-F in proportion to the expenses incurred by the authority from each such activity in the administration of RSA 284-B.
\t\t\t(b) The general court shall determine the distribution of the balance of the initial license fee revenue after the reimbursements required by RSA 284-B:13, IV, provided that distributions shall include the following:
\t\t\t\t(1) Distributions to host or near-by municipalities deemed sufficient by the general court to offset costs incurred by such municipalities attributable to a gaming location’s placement.
\t\t\t\t(2) Revenue in an amount determined by the general court shall be paid to the state treasurer and credited to the commissioner of the department of health and human services to support programs established by RSA 172 to fund baseline research into the prevalence of problem gambling in New Hampshire prior to the expansion of gaming as authorized by this chapter, to identify and assess the treatment needs of individuals with compulsive and problem gambling disorders, to identify effective programming to prevent and control compulsive and problem gambling, and to examine the connections between gambling disorders and drug and alcohol addiction disorders.
\t\t\t\t(3) Distributions to the state treasurer for transfer to the lottery commission, attorney general, and department of safety in amounts equal to any costs of regulatory control over Rockingham Park that are not covered by any other designated source of funding in this chapter.
\t\t\t(c) Upon receipt of the license fee, the lottery commission shall issue the gaming license.
\t\t\t(d) The amount shall be deposited in the gaming regulatory fund and shall be available to the state in the fiscal year received.
\t\tV. A gaming license shall expire 10 years from the date of issuance and may be renewed pursuant to this chapter.
\t\t\t(a) The lottery commission shall adopt rules under RSA 541-A consistent with this chapter relating to procedures for renewal of a gaming license, including an application and review process and such other procedures as are necessary to implement this paragraph.
\t\t\t(b) The commission shall collect a license renewal fee in the amount of $1,500,000 which shall be paid to the state treasurer by Rockingham Park within 30 days of the renewal of the license. The general court shall determine the distribution of the license renewal fee. Upon receipt of the renewal fee, and satisfaction of any additional conditions precedent imposed by the commission, the commission shall issue the gaming license renewal. The amount shall be deposited in the gaming regulatory fund and shall be available to the state in the fiscal year received.
\t\tVI. There is established in the office of the state treasurer a nonlapsing fund to be known as the gaming regulatory fund to be administered by the gaming commission which shall be kept distinct and separate from all other funds. All moneys in the gaming regulatory fund shall be nonlapsing and continually appropriated to the lottery commission for the purpose of distribution under this section.
\t284-B:15 Video Lottery Games. Video lottery games authorized by this chapter may be played at the licensed video lottery retailer’s facilities with the approval of the lottery commission even if that facility is not conducting a pari-mutuel event.
\t284-B:16 Exclusion of Individuals Under the Age of 21 from a Gaming Location.
\t\tI. Except as provided in paragraph II, no individual under the age of 21 shall be permitted access to a gaming floor or restricted area or to otherwise place a wager on a slot machine or table game.
\t\tII. An individual 18 years or older who is a lottery commission-licensed, registered, or permitted employee of Rockingham Park may access a gaming floor or restricted area only at such times and to the extent necessary to perform the duties the individual was employed to perform.
\t\tIII. Rockingham Park shall not conduct marketing and promotional communications or otherwise target or entice an individual under the age of 21 to gamble.
\t\tIV. An individual who is prohibited from gaming in a gaming location under this section shall not collect any winnings or recover any losses arising as a result of prohibited gaming winnings and any winnings shall be forfeited to the lottery commission and deposited into the general fund.
\t\tV. Rockingham Park shall take all reasonable measures to prevent violations of the criminal code provisions related to gambling by individuals under the age of 21 including the provisions set forth in this chapter and RSA 647.
\t284-B:17 Gaming Ticket Expiration, Unclaimed Tickets, Cash, and Prizes.
\t\tI. Rockingham Park shall redeem a ticket issued by a video lottery machine for cash or a cash equivalent for a period of one year from the date of issuance of the ticket.
\t\tII. Upon the expiration of the one-year period in paragraph I, the value of the expired ticket shall revert to the state as an unclaimed prize.
\t\tIII. Rockingham Park shall retain unclaimed cash and winnings for a player for a one-year period from the date of the transaction generating the cash or winnings.
\t\tIV. Upon the expiration of the one-year period in paragraph III, the value of the unclaimed cash or winnings shall revert to the state as unclaimed prizes.
\t\tV. The lottery commission shall adopt rules pursuant to RSA 541-A, consistent with this chapter and the efficient administration of Rockingham Park’s obligations hereunder with regard to the reversion of amounts to the state.
\t284-B:18 Gross Revenue Tax and Other Assessments Payable by Rockingham Park.
\t\tI. Rockingham Park shall remit to the state treasurer a tax of 35 percent of gross slot machine revenue and 18 percent of gross table game revenue in a manner and time as provided for by this chapter.
\t\t\t(a) Upon receipt of payment of taxes on gross slot machine revenue and gross table game revenue by Rockingham Park under this chapter and in accordance with a schedule established by the state treasurer, the state treasurer shall:
\t\t\t\t(1) Pay 3 percent of the gross slot machine revenue of Rockingham Park to the town of Salem.
\t\t\t\t(2) Pay one percent of the gross slot machine revenue of Rockingham Park to the New Hampshire community or communities that abut the host community, dividing such one percent for payment in equal shares if there is more than one abutting community.
\t\t\t\t(3) Pay one percent of the gross slot machine revenue of Rockingham Park to Rockingham county.
\t\t\t\t(4) Pay one percent of the gross slot machine revenue to the commissioner of the department of health and human services to support programs established by RSA 172 to identify, assess, prevent, and treat both compulsive and problem gambling and the related disorders of drug and alcohol addiction.
\t\t\t\t(5) Return that part of the gross slot machine revenue remaining after the distributions provided in subparagraphs (1) through (4) to cities and towns in New Hampshire equal to the amounts determined in accordance with RSA 31-A:4, or if the remaining gross slot machine revenue is less than the amounts that would otherwise be payable in accordance with RSA 31-A:4, then each such city’s or town’s pro rata share of the total available amount determined in accordance with RSA 31-A:4.
\t\t\t\t(6) Deposit the balance into the gaming regulatory fund established by RSA 284-B:14, VI.
\t\t\t(b) Upon payment of taxes on gross slot machine revenue and gross table game revenue by Rockingham Park under this chapter, and subject to payment by the state treasurer of the amounts specified in subparagraph (a), the lottery commission shall:
\t\t\t\t(1) Reimburse funds received by the lottery commission from activities authorized by RSA 284, RSA 287-D, RSA 287-E, and RSA 287-F in proportion to the expenses incurred by the commission for each activity in the administration of this chapter, prior to the payment of the license fee.
\t\t\t\t(2) Charge to and pay out of the tax payments received the compensation of the commissioners, expenses of the commissioners, compensation of assistants, and other necessary expenses of the commission, of the office of the commission chairperson, and of the gaming enforcement unit established in RSA 21-P:7-d, including suitable furniture, equipment, supplies, and office expenses, provided that the lottery commission shall submit an operating budget based on accounting units or other budgetary units required by the general court and shall submit its budget in the same format and at the same time as other state agencies; provided, however, the commission is authorized to transfer funds between line items within and among any budgetary unit.
\t\t\t\t(3) Make distributions to the state treasurer for transfer to the attorney general and the department of safety and local law enforcement agencies in amounts equal to any costs of regulatory control over Rockingham Park that are not covered by any other designated source of funding in this chapter, provided that such distributions shall be in accordance with a budget approved by the general court.
\t\tII. The general court shall determine the distribution of the balance of tax payments on gross slot machine revenue or gross table game revenue remitted by Rockingham Park that remains after provision for the distributions and charges provided for by paragraph I.
\t\tIII. Rockingham Park shall deliver to the state treasurer the amount due to the state treasurer provided for in this section in immediately available funds of the United States at least once a week in such manner and at such time as the state treasurer, with the concurrence of the lottery commission, shall agree. At the time payment is delivered, Rockingham Park shall provide to the state treasurer a written accounting of gross table game revenue and gross slot machine revenue on an aggregate basis together with its calculation of the amount due to the state treasurer pursuant to this section. Rockingham Park’s written accounting shall be in a form satisfactory to the lottery commission and shall be filed concurrently with the commission. Rockingham Park shall pay a penalty of $1,000 for each day that payment or the accounting is not delivered on time to the state treasurer or the commission.
\t\tIV. Rockingham Park shall remit to the lottery commission a fee in the amount of $600 per year per slot machine which fee shall be deposited in a public health trust fund administered by the lottery commission dedicated to addressing problems associated with compulsive gambling, including, but not limited to, gambling prevention and addiction services, substance abuse services, educational campaigns to mitigate the potential addictive nature of gambling, research, and any studies and evaluations consistent with this chapter.
\t284-B:19 Legal Shipment of Gaming Devices Into New Hampshire. All shipments into this state of gaming devices, including slot machines, the registering, recording, and labeling of which has been duly made by the manufacturer or dealer in accordance with sections 3 and 4 of an Act of Congress of the United States entitled “An Act to Prohibit Transportation of Gambling Devices in Interstate and Foreign Commerce,” designated as 15 U.S.C. sections 171-1172, shall be deemed legal shipments into this state.
\t284-B:20 Declaration of Limited Exemption From Operation of the Provisions of 15 U.S.C. sections 1171-1178. Pursuant to section 2 of an act of Congress of the United States entitled “An Act to Prohibit Transportation of Gambling Devices in Interstate and Foreign Commerce,” designated as 15 U.S.C. sections 1171-1178, the state of New Hampshire, acting by and through the duly elected and qualified members of its legislature, does hereby, in accordance with and in compliance with the provisions of that section 2 of that act of Congress, declare and proclaim that section 2 of that Act of Congress shall not apply to any gambling device in this state where the transportation of such a device is specifically authorized by and done in compliance with the provisions of this chapter and any rules adopted by the commission pursuant to it, and that any such gambling device transported in compliance with state law or regulations shall be exempt from the provisions of that Act of Congress.
\t284-B:21 Prohibited Acts; Penalties.
\t\tI. It shall be unlawful for any person to:
\t\t\t(a) Use or attempt to use a cheating device in a casino game or to have possession of such a device in a gaming facility.
\t\t\t(b) Use, acquire, or possess paraphernalia with intent to cheat, or attempt to use, acquire, or possess, paraphernalia with the intent to manufacture cheating devices.
\t\t\t(c) Cheat, or attempt to cheat in order to take or collect money or anything of value, whether for one’s self or another, in or from a casino game in a gaming facility.
\t\t\t(d) Conduct, carry on, operate, deal, or attempt to conduct, carry on, operate or deal, or allow to be conducted, carried on, operated, or dealt, any cheating game or device.
\t\t\t(e) Manipulate or alter or attempt to manipulate or alter, with the intent to cheat, any physical, mechanical, electromechanical, electronic, or computerized component of a casino game, contrary to the designed and normal operational purpose for the component.
\t\t\t(f) Use, sell, or possess, or attempt to use, sell, or possess, counterfeit coins, slugs, tokens, gaming chips, debit instruments, player rewards cards or any counterfeit wagering instruments, or devices resembling tokens, gaming chips, debit, or other wagering instruments approved by the lottery commission for use in a casino game in a gaming facility.
\t\t\t(g)(1) Place, increase, decrease, cancel, or remove a wager or determine the course of play of a table game, or attempt to place, increase, decrease, cancel, or remove a wager or determine the course of play of a table game, with knowledge of the outcome of the table game where such knowledge is not available to all players; or
\t\t\t\t(2) Aid, or attempt to aid anyone in acquiring such knowledge for the purpose of placing, increasing, decreasing, canceling, or removing a wager or determining the course of play of the table game.
\t\t\t(h) Claim, collect or take, or attempt to claim, collect or take, money or anything of value in or from a casino game or gaming facility, with intent to defraud, or to claim, collect or take an amount greater than the amount won.
\t\t\t(i) In the course of his or her duties as an employee of a gaming facility or anyone acting on behalf of or at the direction of an employee of a gaming facility, to knowingly fail to collect, or attempt to fail to collect, a losing wager or pay, or attempt to pay, an amount greater on any wager than required under the rules of a casino game.
\t\t\t(j) Directly or indirectly offer, or attempt to offer, to conspire with another, or solicit, or attempt to solicit, from another, anything of value, for the purpose of influencing the outcome of a casino game.
\t\t\t(k) Use or possess, or attempt to use or possess, at a gaming facility, without the written consent of the director of the lottery commission, any electronic, electrical or mechanical device designed, constructed or programmed to assist the user or another person with the intent to:
\t\t\t\t(1) Predict the outcome of a casino game.
\t\t\t\t(2) Keep track of the cards played.
\t\t\t\t(3) Analyze and/or predict the probability of an occurrence relating to the casino game.
\t\t\t\t(4) Analyze or predict the strategy for playing or wagering to be used in the casino game.
\t\t\t(l) Skim, or attempt to skim, casino gaming proceeds by excluding anything of value from the deposit, counting, collection, or computation of:
\t\t\t\t(1) Gross revenues from gaming operations or activities.
\t\t\t\t(2) Net gaming proceeds.
\t\t\t\t(3) Amounts due the state pursuant to applicable casino gaming-related laws.
\t\t\t(m) Cheat, or attempt to cheat, in the performance of his or her duties as a dealer or other casino employee by conducting one’s self in a manner that is deceptive to the public or alters the normal random selection of characteristics or the normal chance or result of the game, including, but not limited to, using cards, dice or any cheating device which has been marked, tampered with, or altered.
\t\t\t(n) Possess or use, or attempt to use, without proper authorization from the lottery commission, while in the gaming facility, any key or device designed for the purpose of or suitable for opening or entering any self-redemption unit, kiosk, vault, video lottery terminal, drop box, or any secured area in the gaming facility that contains casino gaming and/or surveillance equipment, computers, electrical systems, currency, cards, chips, dice, or any other thing of value.
\t\t\t(o) Tamper or interfere, or attempt to tamper or interfere, with any casino gaming or surveillance equipment including, but not limited to, computers and related electrical systems.
\t\t\t(p) Access, interfere with, infiltrate, hack into, or infect, or attempt to access, interfere with, infiltrate, hack into or infect any casino gaming-related computer, network, hardware, software, or other equipment.
\t\t\t(q) Sell, trade, barter, profit from, or otherwise use to one’s financial advantage, or attempt to sell, trade, barter, profit from, or otherwise use to one’s financial advantage, any confidential information related to casino gaming operations, including, but not limited to, data (whether stored on a computer’s software, hardware, network or elsewhere), passwords, codes, surveillance and security characteristics or vulnerabilities, or non-public internal controls, policies and procedures related thereto.
\t\t\t(r) Conduct a gaming operation, or attempt to conduct a gaming operation, where wagering is used or to be used without a license issued by the lottery commission.
\t\t\t(s) Provide false information or testimony to the lottery commission, or their authorized representatives, or the state police while under oath.
\t\tII. Any person convicted of violating this section shall be guilty of a felony punishable by imprisonment for not more than 10 years, a fine of not more than $100,000, or both.
\t284-B:22 Barred from Gaming Facility; Restitution; Confiscation.
\t\tI. Any person convicted of any crime under RSA 284-B:21 shall be barred for a period of time, up to a lifetime ban, from Rockingham Park by court order, by the lottery commission, or by Rockingham Park.
\t\tII. Upon conviction of either a felony or misdemeanor in this chapter, the sentencing judge may require full restitution for any monetary losses suffered.
\t\tIII. Any cheating device, paraphernalia used to manufacture cheating devices, counterfeit coins, slugs, tokens, gaming chips, debit instruments, player rewards cards, or any counterfeit wagering instruments or devices resembling tokens, gaming chips, debit, or other wagering instruments or any other equipment or real or personal property used, obtained, or received in violation of this chapter shall be confiscated by the lottery commission, Rockingham Park, or the gaming enforcement unit of the state police, and shall be forfeited to the gaming enforcement unit. This section shall include the confiscation and forfeiture of vehicles containing any items listed above.
\t284-B:23 Additional Crimes. The criminal offenses under this chapter shall be in addition to any other offenses under the laws of this state and nothing in this chapter shall be construed so as to prohibit the prosecution for any other such offenses.
\t2 New Sections; Department of Safety; Gaming Enforcement Unit Established. Amend RSA 21-P by inserting after section 7-c the following new sections:
\t21-P:7-d Division of State Police; Gaming Enforcement Unit.
\t\tI. There is established within the division of state police a gaming enforcement unit under the supervision of the commissioner of the department of safety. Notwithstanding RSA 106-B:15, the unit shall:
\t\t\t(a) Investigate violations of RSA 284-B and the rules adopted under the provisions of RSA 284-B, and initiate proceedings before the lottery commission for such violations. The unit shall report the results of any investigation conducted to the commission.
\t\t\t(b) Participate in any hearing conducted by the lottery commission.
\t\t\t(c) Investigate crimes which may involve a violation of RSA 284-B that occur at a gaming location.
\t\tII. The commissioner of the department of safety shall organize the unit as the commissioner deems necessary. The commissioner may employ such state police personnel as the commissioner deems necessary to fulfill the responsibilities of the unit.
\t21-P:7-e Enforcement Expenditures. The governor and council, upon request from the commissioner of the department of safety, may authorize the transfer of general funds as necessary to the department of safety to implement and enforce RSA 21-P:7-d and RSA 284-B.
\t3 New Subparagraphs; Gaming Regulatory Fund. Amend RSA 6:12 by inserting after subparagraph (331) the following new subparagraphs:
\t\t\t\t(332) Moneys deposited into the gaming regulatory fund established in RSA 284-B:14, VI.
\t\t\t\t(333) Moneys deposited into the public health trust fund established in RSA 284-B:18, IV.
\t4 Effective Date. This act shall take effect January 1, 2017.
\t\t\t\t\t\t\t\t\t\t\t16-2733
\t\t\t\t\t\t\t\t\t\t\tRevised 2/19/16
SB 551-FN-A-LOCAL- FISCAL NOTE
AN ACT\testablishing video lottery and table gaming at one location.
FISCAL IMPACT:
The New Hampshire Lottery Commission, Department of Safety, Department of Justice, Department of Health and Human Services, New Hampshire Municipal Association, Judicial Branch, Judicial Council, Department of Corrections, and New Hampshire Association of Counties state this bill, as introduced, will increase state, county, and local revenues and expenditures by an indeterminable amount in FY 2017 and each year thereafter.
This bill establishes a nonlapsing, continually appropriated fund known as the gaming regulatory fund.
This bill establishes a fund known as the public health trust fund.
METHODOLOGY:
This bill enables the Lottery Commission to license one casino offering video lottery machines and table games at Rockingham Park in Salem, New Hampshire, and establishes the Gaming Enforcement Unit within the Department of Safety’s Division of State Police. The Lottery Commission and Gaming Enforcement Unit would be primarily responsible for the administration and enforcement of gaming under this bill. This bill allows for the issuance of one gaming license to be awarded, following an application process, and requires the licensee to operate between 2,000 and 3,500 video lottery machines and between 80 and 160 table games. The initial license fee is $80,000,000 and shall be valid for ten years, with the license renewal fee set at $1,500,000, which will also be valid for ten years.
This bill requires gaming licensees remit to the state a tax of 35% of gross slot machine revenue and 18% of gross table game revenue, with proceeds allocated as follows:
In addition to license fees, the bill imposes application and investigation fees. In each case, the bill states that if the cost of processing each application or conducting each investigation exceeds the amount of the fee, the applicant shall pay the difference. The fees are as follows:
The Lottery Commission estimates the following activity related to application and license fees:
| FY 2017 | FY 2018 | FY 2019 | FY 2020 |
Gaming Application Fee (1 @ $400,000)1 | $400,000 | $0 | $0 | $0 |
Background Investigation Fee (1 @ $100,000 in FY 17) 1 | $100,000 | $0 | $0 | $0 |
License Fee (1 @ $80,000,000) 1 | $0 | $80,000,000 | $0 | $0 |
Total (Gaming Regulatory Fund) | $500,000 | $80,000,000 | $0 | $0 |
|
|
|
|
|
Slot Machine Fee (3,000 @ $600) 2 | $0 | $0 | $1,800,000 | $1,800,000 |
Total (Public Health Trust Fund) | $0 | $0 | $1,800,000 | $1,800,000 |
1 Revenue deposited in the gaming regulatory fund.
2 Revenue deposited in the public health trust fund administered by the Lottery Commission.
The Lottery Commission makes the following assumptions in estimating the potential gaming revenue impact of this bill:
Based on the above assumptions, the Lottery Commission estimates a total of $105,895,625 in tax revenue under this bill in FY 2019 (partial year beginning in September) and $127,074,750 in FY 2020, the assumed first full year of operation. The Commission assumes a casino operating in the state will decrease traditional lottery net revenue by $5,800,000 to $7,300,000 per year and charitable gaming revenue by an indeterminable amount. With respect to Lottery Commission expenditures, the Commission estimates they will incur $700,000 in personnel and contractor expenditures in FY 2017 and $735,000 in FY 2018 leading up to the opening of a facility. After the assumed opening of the casino, it estimates personnel and contractor expenditures to be $1,584,000 in FY 2019 and $1,728,000 in FY 2020. Lastly, the Commission estimates the operation of a central gaming system to total $1,666,666 in FY 2019 and $2,000,000 in FY 2020.
Based on the Commission’s revenue estimates, under this bill gross slot machine and table game revenue would be distributed as follows:
| FY 2019 | FY 2020 |
Gaming Revenue |
|
|
# Slot Machines | 3,000 | 3,000 |
Average Daily Gross Machine Revenue (Per Machine) | $275 | $275 |
Average Daily Gross Machine Revenue (All Machines) | $825,000 | $825,000 |
Estimated Annual Gross Machine Revenue (All Machines) | $301,125,000 | $301,125,000 |
Gross Slot Machine Tax Revenue (35%) | $105,393,750 | $105,393,750 |
|
|
|
# Table Games | 150 | 150 |
Average Daily Gross Table Game Revenue (Per Table) | $2,200 | $2,200 |
Average Daily Gross Table Game Revenue (All Tables) | $330,000 | $330,000 |
Estimated Annual Gross Table Game Revenue (All Tables) | $120,450,000 | $120,450,000 |
Gross Table Game Tax Revenue (18%) | $21,681,000 | $21,681,000 |
|
|
|
Subtotal Total Tax Revenue | $127,074,750 | $127,074,750 |
Partial Year Adjustment (10 of 12 Months Only - FY 19) | ($21,179,125) | $0 |
Total Tax Revenue | $105,895,625 | $127,074,750 |
|
|
|
Distribution/Allocation of Revenue |
|
|
Town of Salem (3% of Gross Slot Machine Revenue) | ($2,634,844) | ($3,161,813) |
Abutting Communities (1% of Gross Slot Machine Revenue) | ($878,281) | ($1,053,938) |
Rockingham County (1% of Gross Slot Machine Revenue) | ($878,281) | ($1,053,938) |
DHHS for Problem Gaming (1% of Gross Slot Machine Revenue) | ($878,281) | ($1,053,938) |
"Revenue Sharing" Payments to Communities | ($25,216,054) | ($25,216,054) |
Deductions Total | ($30,485,741) | ($31,539,679) |
Gaming Regulatory Fund (Net Revenue After Distributions) | $75,409,884 | $95,535,071 |
Under this bill, reimbursements of certain expenditures shall be made from available funds in the gaming regulatory fund to the Lottery Commission, the Department of Justice (Attorney General), the Department of Safety, and local law enforcement agencies. The amounts and timing of such reimbursements is indeterminable.
The Department of Safety states this bill establishes a Gaming Enforcement Unit within the Division of State Police. The Unit will be charged with investigating violations of the bill’s provisions, initiating proceedings before the Lottery Commission for such violations, participating in hearings conducted by the Commission, and reporting the results of investigations to the Commission. In addition, the Unit will investigate any crimes that occur at the gaming facility, and present its findings to the appropriate prosecuting authority for potential prosecution in a criminal court. Based on the assumption that once this legislation passes a casino could be operational during FY 2020, the Department assumes that prior to the actual opening of a casino significant efforts would be required to establish the gaming enforcement unit within the Division of State Police, including hiring and training of required personnel. This effort would require coordination with other state agencies and cannot be estimated at this time. While the Department states it is unable to estimate FY 2017 and FY 2018 costs, it has provided the following costs assuming a casino opening in FY 2020:
| FY 2019 | FY 2020 |
Salary and Benefits for 16 Employees (1) State Police Lieutenant (1) State Police Sergeant (13) State Police Detectives (1) Administrative Secretary | $1,784,475 | $1,800,809 |
Overtime and Part-Time Employee Costs | $90,828 | $90,828 |
Training | $30,000 | $30,000 |
Operating Expense | $66,500 | $63,500 |
Equipment | $834,938 | $0 |
Total Costs | $2,806,741 | $1,985,137 |
Under this bill, the Department of Safety may receive a distribution of gaming revenue for costs not covered by any other designated source of funding. Additionally, this bill allows the Governor and Executive Council, upon request from the Commissioner of the Department to authorize a transfer of general funds as necessary for the Department to implement and enforce RSA 21-P:7-d and RSA 284-B, as established under this bill.
The Department of Justice states this bill would authorize the licensing of one casino which would be regulated by the Lottery Commission. The Lottery Commission would act as primary enforcement agent for regulatory matters and the Division of State Police Gaming Enforcement Unit would be responsible for investigations and violations under the gaming statutes and rules adopted thereunder related to the gaming floor and restricted areas of each gaming location. The Department of Justice states under this bill it would be responsible for conducting a background investigation of any applicant for a gaming license and conducting background investigations of applicants for a gaming license. Under this bill, gaming applicants would be required to pay an investigation fee of $100,000 to cover the Department of Justice’s costs relative to conducting a background investigation on applicants for a gaming license, as well be responsible to cover any costs in excess of $100,000, therefore making this responsibility of the Department revenue neutral. In addition to applicant background investigations, the Department would also be responsible for the following:
The Department of Justice anticipates the following costs relative to these other responsibilities:
| FY 2017 | FY 2018 | FY 2019 | FY 2020 |
Personnel, Equipment, and Supply Costs |
|
|
|
|
(2) Full-Time Attorneys (2) Full-Time Legal Secretaries (1) Part-Time Attorney | $495,000 | $493,000 | $501,000 | $510,000 |
Under this bill, the Department of Justice may receive a distribution of gaming revenue for costs not covered by any other designated source of funding.
The Department of Health and Human Services states that based on current staffing levels for prevention and treatment service programs, the Department would need to establish two new full-time positions. The Department states additional funds will be used for media advertising and outreach, information development and dissemination, data collection and research to determine the scope of problem gambling and effectiveness of interventions and contracts for outpatient gambling addiction. This bill allocates one percent of gross slot machine income to the Department to support programs established under RSA 172 to treat problem gaming. The Department is unable to estimate position costs, contract costs, or costs of other uses of potential funding at this time.
In addition to the municipal revenue and expenditure impacts stated above, the New Hampshire Municipal Association states this bill would require local approval by the voters of the town of Salem at a regular municipal, state, or special election. The Association states it is possible if this bill were to pass the question could be submitted to voters at the town’s election in March of 2017 or at a special election in the first part of 2017. The Association further states it cannot predict the timing of site plan approvals or other required permitting and therefore is unable to predict this bill’s impact on municipal expenditures.
This bill establishes felony level prohibited acts and therefore may result in a fiscal impact on state agencies and county government as there may be an increase in prosecutions, incarcerations, and appeals as a result of this bill. While it is not possible to estimate how many individuals may be prosecuted or incarcerated or how many appeals may be filed, each potentially affected agency has provided the following date for information purposes:
| FY 2017 | FY 2018 |
Judicial Branch |
|
|
Routine Criminal Felony Case | $449 | $470 |
Appeals | Varies | Varies |
It should be noted average case cost estimates for FY 2017 and FY 2018 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types. | ||
Judicial Council |
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Public Defender Program | Has contract with State to provide services. | Has contract with State to provide services. |
Contract Attorney – Felony | $756/Case | $756/Case |
Assigned Counsel – Felony | $60/Hour up to $4,100 | $60/Hour up to $4,100 |
It should be noted that a person needs to be found indigent and have the potential of being incarcerated to be eligible for indigent defense services. The majority of indigent cases (approximately 85%) are handled by the public defender program, with the remaining cases going to contract attorneys (14%) or assigned counsel (1%). | ||
Department of Corrections |
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FY 2015 Average Cost of Incarcerating an Individual | $34,336 | $34,336 |
FY 2015 Average Cost of Supervising an Individual on Parole/Probation | $520 | $520 |
NH Association of Counties |
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County Prosecution Costs | Indeterminable | Indeterminable |
Estimated Average Daily Cost of Incarcerating an Individual | $85 to $110 | $85 to $110 |