Bill Text - SB540 (2018)

(Second New Title) relative to the operation of keno games in unincorporated places and permitting keno games in cigar bars.


Revision: May 14, 2018, 10:53 a.m.

SB 540-FN - AS AMENDED BY THE HOUSE

 

03/14/2018   0980s

03/14/2018   1101s

12Apr2018... 1315h

26Apr2018... 1518h

 

2018 SESSION

18-2790

06/10

 

SENATE BILL 540-FN

 

AN ACT relative to the operation of keno games in unincorporated places and permitting keno games in cigar bars.

 

SPONSORS: Sen. Feltes, Dist 15; Sen. Woodburn, Dist 1; Sen. Soucy, Dist 18; Sen. Lasky, Dist 13; Sen. Kahn, Dist 10; Sen. Cavanaugh, Dist 16; Sen. Hennessey, Dist 5; Rep. Myler, Merr. 10; Rep. Heath, Hills. 14; Rep. Henle, Merr. 12; Rep. Cushing, Rock. 21; Rep. Luneau, Merr. 10

 

COMMITTEE: Finance

 

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AMENDED ANALYSIS

 

This bill provides that unincorporated places may permit the operation of keno games by a majority vote of the county delegation.  This bill also permits the operation of keno games in cigar bars.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/14/2018   0980s

03/14/2018   1101s

12Apr2018... 1315h

26Apr2018... 1518h 18-2790

06/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to the operation of keno games in unincorporated places and permitting keno games in cigar bars.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Paragraph; Keno; Local Option.  Amend RSA 284:51 by inserting after paragraph IV the following new paragraph:

IV-a.  An unincorporated place may allow the operation of keno games by majority vote of the county delegation, after a public hearing is held.

2  New Subparagraph; Keno; License Applications.  Amend RSA 284:45, VI(a) by inserting after subparagraph (8) the following new subparagraph:

(9)  A cigar bar holding a valid liquor license under RSA 178:20-a.

3  Liquor Licenses and Fees; On-Premises Cigar, Beverage, and Liquor Licenses.  Amend RSA 178:20-a, II(a) to read as follows:

(a)  Generates 60 percent or more of its quarterly gross revenue from the sale of cigar-related products, which is limited to cigars, humidors, cigar cutters, cigar cases, lighters, and ashtrays.  Revenue from keno, mail order and Internet sales, as well as revenue generated from other tobacco sales in store, including cigarettes and loose tobacco sales, shall not be used to determine whether an establishment satisfies the definition of a cigar bar.

4  Effective Date.  This act shall take effect upon its passage.

 

LBAO

18-2790

Amended 5/14/18

 

SB 540-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2018-1518h)

 

AN ACT relative to the operation of keno games in unincorporated places and permitting keno games in cigar bars.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

$284,000

$284,000

$284,000

$284,000

   Expenditures

$281,200

$281,200

$281,200

$281,200

Funding Source:

  [    ] General            [ X ] Education            [    ] Highway           [ X ] Other - Lottery Revenue and Restricted Revenue to DHHS (Problem Gambling Services)

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$281,200

$281,200

$281,200

$281,200

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill provides authority for unincorporated places to allow for the operation of Keno, as well as adds cigar bars holding a valid liquor license to allowable establishments to offer Keno.  According to the Lottery Commission it is aware of at least one establishment in an unincorporated place that has expressed interest in offering Keno.  Also, there are currently seven cigar bars holding liquor licenses in municipalities approved to offer Keno.  Therefore, it is assumed eight new establishments would offer Keno under this bill.  Based on the following assumptions, this bill is estimated to generate net revenue to the state of $284,000 per year:

 

  • Each location would generated $175,000 in gross Keno sales per year
  • Prize payouts would be approximately 70% of sales
  • License fee of $500 per location
  • Central gaming system costs of 2% of sales
  • Licensees would retain 8% of sales
  • Transfer to Department of Health and Human Services to support research, prevention, and treatment services for problem gamblers of 1% of gross proceeds

 

Number of Locations

                     8

Total Gross Keno Sales

$1,400,000

License Fee Revenue

$4,000

Revenue Total

$1,404,000

Licensee Commission

($112,000)

Prizes

($980,000)

Central Gaming System

($28,000)

Total Expenses

($1,120,000)

Net

$284,000

DHHS: Problem Gambler Services

$2,800

Net to Education Trust Fund

$281,200

 

 

To the extent net Keno revenue to the education trust fund increases, revenue to school districts in the form of kindergarten grants under RSA 198:48-c will increase.

 

AGENCIES CONTACTED:

New Hampshire Lottery Commission