Revision: Jan. 11, 2023, 2:57 p.m.
HB 607-FN - AS INTRODUCED
2023 SESSION
23-0421
02/05
HOUSE BILL 607-FN
AN ACT relative to the regulation of games of chance.
SPONSORS: Rep. Doucette, Rock. 25; Rep. Berry, Hills. 39; Rep. Sweeney, Rock. 25; Rep. O'Brien, Hills. 10; Rep. Soucy, Merr. 21; Rep. Goley, Hills. 21; Sen. Ricciardi, Dist 9
COMMITTEE: Ways and Means
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ANALYSIS
This bill changes the definitions of game operator, game operator employer, primary game operator and secondary game operator. It changes the charitable organization and game operator license application requirements and date of license expiration. It raises the cap amount each player may spend per game and per wager. It also changes the administrative and criminal penalties related to games of chance.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0421
02/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to the regulation of games of chance.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Games of Chance; Definitions. Amend RSA 287-D:1, VII-XI to read as follows:
VII. "Game operator" means a game operator employer, primary game operator or a secondary game operator.
VIII. "Game operator employer" means a [primary game operator or] a business entity or individual who employs, supervises, and controls game operators and who is hired by a charitable organization to operate games of chance on its behalf. The owner of 10 percent or more of the entity, partner, managing member, or chief executive of a business entity who serves as a game operator employer must be [licensed as a primary game operator] listed on the game operator license application.
IX. "Gaming equipment" means a collective reference to table game devices and their associated equipment.
X. "Primary game operator" means any person other than a bona fide member of the charitable organization, involved in conducting, managing, supervising, directing, or running games of chance, including but not limited to: gambling operation managers and assistant managers, managers or supervisors of security employees, pit bosses, shift bosses, credit executives, and cashier operations supervisors.
XI. "Secondary game operator" means any person other than a bona fide member of the charitable organization, involved in dealing, running a roulette wheel, handling chips, or providing accounting services or security functions, including any person with job functions or responsibilities that require the person to watch over, protect, handle, use, maintain or otherwise be responsible for gaming cash, revenue, supplies or devices. This includes individuals in the back office and anyone that has access to gaming systems, chips, tokens, playing cards, or anyone who has the ability to access or make changes to the gaming operations accounting system, player tracking system, or gaming system records, including access to cash and accounting records.
2 License Applications; General Requirements and Process. Amend RSA 287-D:5, IV(d) to read as follows:
(d) A complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the department of safety. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints shall be necessary in order to complete the criminal history records check. The requirements of subparagraphs (c) and (d) under this paragraph shall not apply to charity applicants employing a game operator employer.
3 Charitable Organization License Application; Specific Requirements. Amend RSA 287-D:6, I(b) to read as follows:
(b) A list of the names and addresses of the current [bona fide members] officers of the charity.
4 Facilities License Application; Specific Requirements. RSA 287-D:7 is repealed and reenacted to read as follows:
287-D:7 Facilities License Application; Specific Requirements.
I. Any person or entity other than a charitable organization or governmental subdivision with control of a facility, including by a written lease, at which games of chance are held for 5 or more game dates per calendar year shall be licensed.
II. A facilities license application shall include certification of compliance with all of the requirements of RSA 287-D:5, provided that the commission may, by rule, establish additional items to be submitted on the application form or attached to it.
III. Licenses shall expire three years after being issued, provided that the licensee shall annually file with the commission a statement as to any changes to the information required on the license application with the commission no later than December 31 of each year. The licensee shall immediately notify the commission in the event the licensee is subject to arrest or conviction of any criminal offense.
5 Game Operator Employer License Application; Specific Requirements. RSA 287-D:8 is repealed and reenacted to read as follows:
287-D:8 Game Operator Employer License Application; Specific Requirements. Any person or entity other than a charitable organization that employs primary game operators shall be licensed under this section. In addition to the general requirements under RSA 287-D:5, a game operator employer license application shall include, at a minimum, the following information provided that the lottery commission may, by rule, establish additional items to be submitted on the application form or attached to it:
I. Certification of compliance with all of the requirements of RSA 287-D:5.
II. Federal tax identification number.
III. One passport quality photograph, if the applicant is an individual.
IV. A description of the licensed premises.
V. A bond for each location where the game operator employer is conducting games of chance, conditioned upon the licensees running games of chance in conformity with this chapter and with the rules and regulations prescribed by the lottery commission, in the amount of up to $1,000,000 but not less than $25,000. The amount of the bond in excess of $25,000 established for each licensee shall be based on that licensee's normal outstanding obligations of charity payments and state taxes, including any amounts due from historic racing revenue.
VI. Licenses shall expire 3 years after being issued, provided that the licensee shall annually file with the commission a statement as to any changes to the information required on the license application with the commission no later than December 31 of each year. The licensee shall immediately notify the commission in the event the licensee is subject to arrest or conviction of any criminal offense.
6 Primary Game Operator License; Specific Requirements RSA 287-D:9 is repealed and reenacted to read as follows:
287-D:9 Primary Game Operator License Application; Specific Requirements.
I. Other than members of a charitable organization, any person who is involved in conducting, managing, supervising, directing, or running games of chance, including, but not limited to, gambling operation managers and assistant managers, managers or supervisors of security employees, pit bosses, shift bosses, credit executives, and cashier operations supervisors shall be licensed under this section. In addition to the general requirements under RSA 287-D:5, a primary game operator license application shall include, at a minimum, the following information provided that the lottery commission may, by rule, establish additional items to be submitted on the application form or attached to it:
(a) The identity of the game operator employer for whom the applicant works.
(b) A list of any other states in which the game operator has been registered or licensed as a professional fundraiser, professional game operator, or other similar position.
(c) Whether a registration or license listed in subparagraph (b) has been denied, suspended, revoked, or enjoined by a court or state agency, or if such proceedings are pending.
(d) The names and addresses of any individuals with whom the applicant is affiliated in the fundraising or game operating business.
(e) One passport quality photograph.
II. Concurrent with the charitable organization, games of chance employers who operate games of chance on behalf of a charitable organization shall be responsible for all requirements for which the charitable organization is responsible when a charitable organization operates games of chance itself.
III. Unless a provision to the contrary is part of a written agreement in place prior to the commencement of a game date between the charitable organization and the game operator employer, all moneys due to the charitable organization shall be paid over to the organization no later than the 15th day of the month following the month in which a game was conducted.
IV. The provisions of RSA 7:28-c shall not apply to primary game operator licensees.
V. Nothing in this section shall prevent a licensee from working for another game operator employer. A licensee who works for more than one game operator employer during the licensed period shall have a separate badge for each game operator employer, and pay a separate fee for each badge.
VI. The primary game operator license shall expire on the last day of the month of the licensee's birthday 3 years after it is issued, provided that the licensee shall annually file with the commission a statement as to any changes to the information required in paragraph I no later than the last day of the month of the licensee's birthday. The licensee shall immediately notify the commission in the event the licensee is subject to arrest or conviction of any criminal offense.
7 Secondary Game Operator License Application; Specific Requirements. Amend RSA 287-D:10 to read as follows:
287-D:10 Secondary Game Operator License Application; Specific Requirements.
I. Other than members of a charitable organization, any person who is employed by a game operator employer [or a primary game operator] shall be licensed under this section.
II. In addition to the general requirements under RSA 287-D:5, a secondary game operator license application shall include, at a minimum, the following information provided that the lottery commission may, by rule, establish additional items to be submitted on the application form or attached to it:
(a) A list of any other states in which the game operator has been registered or licensed as a professional fundraiser, professional game operator, or other similar position.
(b) A statement of whether a registration or license listed in subparagraph (a) has been denied, suspended, revoked, or enjoined by a court or state agency, or if such proceedings are pending.
(c) The identity of the primary game operators for whom the applicant works.
(d) Two passport quality photographs.
III. A secondary game operator license shall expire on the last day of the month of the licensee's birthday 3 years after it is issued, provided that the licensee shall annually file with the commission a statement as to any changes to the information required in paragraph II with the commission no later than the last day of the month of the licensee's birthday. The licensee shall immediately notify the commission in the event the licensee is subject to arrest or conviction of any criminal offense.
IV. The provisions of RSA 7:28-c shall not apply to secondary game operator licensees.
V. Nothing in this section shall prevent a licensee from working for different licensed entities. [A licensee who works for more than one game operator employer during the licensed period shall submit a supplemental application with a separate licensing fee,] The licensee shall have a separate badge for each game operator employer, and pay a separate fee for each badge.
VI. Upon receipt of a completed application under this section, and at the request of the applicant, the lottery commission may issue a provisional license, valid for up to 60 days, under rules adopted by the lottery commission under RSA 541-A. If the lottery commission denies the license, the provisional license shall expire upon the applicant's receipt of such denial. If the applicant requests a provisional license under this paragraph, he or she shall submit a fee of $10 to the lottery commission, in addition to the application fee for the license, at the time of such request.
8 License Fees. Amend RSA 287-D:13 to read as follows:
287-D:13 License Fees. The application fee for:
I. A charitable gaming license shall be [$25 per game date] $50, which shall entitle the charity to up to 10 game dates per calendar year.
II. A facility license shall be $250 per year.
III. A game operator employer license shall be $750 per year.
IV. A primary game operator license shall be [$500] $100 per year paid with the application the first year and paid in the subsequent 2 years with the filing of the annual notice of changes form required under RSA 287-D:9, VII.
V. A secondary game operator license shall be $30 per year paid with the application the first year and paid in the subsequent 2 years with the filing of the annual notice of changes form required under RSA 287-D:10, III.
VI. Each original or replacement identification badge shall be $10.
9 Operation of Games of Chance. Amend RSA 287-D:14, XII-XXII to read as follows:
XII.(a) On game dates where the charitable organization operates the games, the charitable organization shall deposit cash and proceeds from a game of chance into the account required under this chapter. All expenses, including [prizes of $500 or more and] equipment and hall rental fees shall be paid by check from said account. The treasurer of the charitable organization shall document all prizes awarded as prescribed in rules adopted by the lottery commission.
(b) On game dates when the licensed game operator operates the games, the licensed game operator shall deposit cash and proceeds from a game of chance into the account required under this chapter. All expenses, including equipment and hall rental fees shall be paid by check or electronic fund transfers from the account described in RSA 287-D:9, I(e). The licensed game operator shall document all prizes awarded as prescribed in rules adopted by the lottery commission. [Prizes of $500 or more shall be paid by check from the account described in RSA 287-D:9, I(e).]
XIII. All game of chance paraphernalia or related equipment used in conducting games of chance shall be subject to inspection and approval by the lottery commission.
XIV. The charitable organization shall keep a record of all persons participating in the operation of a game of chance, including but not limited to, the date and location of the game and the person's name, address, telephone number, and type of participation in the game.
XV. For games of chance where chips have no monetary face value, the charitable organization may offer any number of games per licensed event in which each player may spend up to [$150] $2,500 per game including buy-ins and re-buys.
XVI. [Notwithstanding paragraph XV, the charitable organization may offer one game per licensed event in which each player may spend up to $250 for the game including buy-ins and re-buys.
XVII.] For games of chance where chips have no monetary face value, the payback in prizes shall not exceed 80 percent of the total amount collected from players.
[XVIII.] XVII. A games of chance licensee shall not play any games of chance on a licensed game date unless all games of chance to be played have been approved by the lottery commission [and have been identified on an approved game schedule].
[XIX.] XVIII. The charitable organization may amend or supplement the list of members who will participate in the operation of a game of chance up to 10 working days prior to any particular game.
[XX.] XIX. At least 45 days prior to each game date, the charitable organization shall submit the date and location of the game of chance, if this information has not already been submitted to the lottery commission under RSA 287-D:6, I(d).
[XXI.] XX. Every game operator employer shall develop house rules and submit such rules to the lottery commission for approval.
[XXII.] XXI. Every game operator employer shall maintain list of manufacturers and distributors detailing the type of gaming equipment purchased from each. The information shall be detailed enough to permit the lottery commission to research the origin and any piece of gaming equipment.
10 Wagers. Amend RSA 287-D:16 to read as follows:
287-D:16 Wagers. No single wager by a player, on any game of chance, shall exceed the amount of $25 [$10]. Provided, however, that in games of poker where the chips have monetary value, play may be conducted under "table stakes" rules where the amount of blinds, antes, and any other type of forced bet shall not exceed [$10] $25 per player but the amount wagered by a player during the play of a hand shall not be limited except by the amount of chips the player has in his or her possession on the table. In any such "table stakes" game, the amount of chips a player may purchase during the course of play in said game shall be no greater in value than [$150] $2,500.
11 Equipment; Inspection. Amend RSA 287-D:17 to read as follows:
287-D:17 Equipment; Inspection.
I. All devices and equipment used to conduct games of chance shall be subject to inspection by duly authorized law enforcement or lottery commission officials.
II. No mechanism or device, which can be used to regulate odds, shall be permitted to operate games of chance[ and no progression in any form shall be permitted in the operation of any such game].
12 Financial Reports, Inspections and, Other Records. Amend RSA 287-D:22, I-II to read as follows:
I.(a) A charitable organization shall submit a complete financial report for all game dates licensed under RSA 287-D:4 to the lottery commission on forms approved by the lottery commission within 15 days of the end of each month during which a game of chance was held. Such report shall be completed by the treasurer of the charitable organization or a duly authorized officer, director, or official of the charitable organization who shall certify such accounting under oath; or
(b) A licensed [primary] game operator employer under contract to conduct games of chance on behalf of a charitable organization shall prepare and submit the financial reports required under subparagraph (a). In such case the charitable organization shall not be required to submit such report. Such report shall be completed by the [primary] game operator employer who shall certify such accounting under oath.
II. The financial report shall include:
(a) A complete statement of all revenues and expenses.
(b) A record of the amount of prizes awarded.
(c) The names and addresses of the members who participated in the games of chance.
(d) The name and address of any [fundraising counsel or] game operator employer involved in conducting the games of chance.
13 Penalties. Amend RSA 287-D:23, III to read as follows:
III. The lottery commission may suspend or revoke the license of any licensee who violates any provision of this chapter or for just cause shown. Any licensee whose license is revoked shall not be eligible for licensure for a period [of up to one year] from the date of revocation as determined by the commission.
14 Penalties. Amend RSA 287-D:23, IX to read as follows:
IX. The lottery commission may impose an administrative fine scaled to reflect a violator's prior history of noncompliance with laws pertaining to games of chance and the scope and severity of the violation, after notice and hearing, pursuant to rules adopted under RSA 541-A, for any violation of this chapter, any rule adopted under this chapter, any license issued pursuant to this chapter, or any order issued pursuant to this chapter, or upon any person who makes or certifies to a material false statement relative to any application or report required by this chapter. In determining the amount of a fine, the lottery commission may take into consideration all relevant circumstances, including: the degree of noncompliance, the extent of harm caused by the violation, the nature and persistence of the violation, the time and cost associated with the investigation by the state, and the economic impact of the violation on the state or the charitable organization conducting or sponsoring the game. No administrative fine imposed under this paragraph shall preclude the imposition of other penalties as provided by law. Rehearings and appeals from a decision of the lottery commission under this paragraph shall comply with RSA 541. Fines imposed by the lottery commission shall be as follows:
(a) The fine for a minor violation shall be not less than $25 and not more than $500 per violation. A minor violation shall be one where the lottery commission determines that the potential for harm to the interests of the state and the charitable organization, as well as the integrity of charitable gaming is minor [and may include, but is not limited to, the failure of a game operator, a game operator employer, charitable organization, or charitable organization member to:
(1) Wear a properly issued badge;
(2) Post 2 copies of the laws and rules;
(3) Have a diagram available for each table where games of chance are being played indicating the type of game being played, the bet amount, the buy-in amount, and the re-buy amounts as applicable; or
(4) Publicly display the name of the charitable organization].
(b) The fine for a moderate violation shall be not less than $250 and not more than $1,500 per violation. A moderate violation shall be one where the lottery commission determines that the potential for harm to the interests of the state and the charitable organization, as well as the integrity of charitable gaming is moderate [and may include, but is not limited to, a game operator, game operator employer, charitable organization, or charitable organization member:
(1) Filing a late financial report;
(2) Operating a game not specifically listed on the game schedule;
(3) Operating a game on a different date than licensed without approval of the lottery commission; or
(4) Committing 3 or more minor violations within 2 years].
(c) The fine for a major violation shall be not less than $1,000 and not more than $5,000 per violation. A major violation shall be one where the lottery commission determines that the potential for harm to the interests of the state and the charitable organization, as well as the integrity of charitable gaming is major and shall include, but is not limited to, a game operator, game operator employer, charitable organization, or charitable organization member:
(1) Operating a game of chance without a license;
(2) Operating a game of chance without having the personnel or officials required;
(3) Purposely operating a game of chance without a representative of the charitable organization present as specified in RSA 287-D:14, XI;
(4) Operating a game of chance with game operators who are not licensed;
(5) Failing to establish or maintain a New Hampshire bank account; or
(6) Committing 5 or more minor violations or 3 or more moderate violations within 2 years.
(d) The lottery commission may suspend any part of a fine for just cause.
15 New Subparagraph; Theft by Deception. Amend RSA 637:4, II by inserting after subparagraph (e) the following new subparagraph:
(f) Uses misrepresentation or cheats at any game conducted under RSA 287-D to obtain anything of value.
16 New Subparagraph; Theft; Penalties. Amend RSA 637:11, II by inserting after subparagraph (g) the following new subparagraph:
(h) The theft occurs as defined in RSA 637:4, II(f).
17 Repeal. RSA 287-D:5, III, relative to submission of application to the chief of police, is repealed.
18 Repeal. 2021, 66:10, relative to licensed facilities; eligible in 2024, is repealed.
19 Effective Date. This act shall take effect upon its passage.
23-0421
1/9/23
HB 607-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the regulation of games of chance.
FISCAL IMPACT:
The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill, as introduced, as it is awaiting information from the Lottery Commission. The Commission was contacted on 12/19/22. When completed, the fiscal note will be forwarded to the House Clerk's Office.
AGENCIES CONTACTED:
Lottery Commission