Revision: March 11, 2025, 9:25 a.m.
HB 728-FN - AS INTRODUCED
2025 SESSION
25-0720
02/08
HOUSE BILL 728-FN
SPONSORS: Rep. Doucette, Rock. 25
COMMITTEE: Ways and Means
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ANALYSIS
This bill authorizes and regulates video lottery terminals, and repeals the authorization of historic horse racing.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0720
02/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Video Lottery Terminals. Amend RSA by inserting after chapter 287-I the following new chapter:
CHAPTER 287-J
VIDEO LOTTERY TERMINALS
287-J:1 Definitions.
In this chapter:
I. "Class III gaming machine" or "video lottery terminal" means any mechanical, electrical, or computerized contrivance, terminal, machine, or other device which, upon insertion of a coin, bill, ticket, token, or similar object therein, or upon payment of any consideration whatsoever, including the use of any electronic payment system, is available to play or operate, the play or operation of which, whether by reason of skill or application of the element of chance or both, may deliver or entitle the person or persons playing or operating the contrivance, terminal, machine, or other device to receive cash, billets, tickets, tokens, or electronic credits to be exchanged for cash or to receive merchandise or anything of value whatsoever, whether the payoff is made automatically from the machine or manually. The term "class III gaming machine" or "video lottery terminal" shall not include any mechanical, electrical, or computerized contrivance, terminal, machine, or other device which otherwise satisfies this definition, but which is operated through or utilizes the Internet or is played on or with assistance from the Internet.
II. "Video lottery terminal revenue" means the total of cash or cash equivalent wagers received by a video lottery terminal minus the total of:
(a) Cash or cash equivalents paid out to players as a result of playing a video lottery terminal, whether paid manually or paid out by the video lottery terminal;
(b) Cash or cash equivalents paid to purchase annuities to fund prizes payable to players over a period of time as a result of playing a video lottery terminal; and
(c) The value of any personal property distributed to a player as a result of or in relation to playing a video lottery terminal, whether as a prize or otherwise related to video lottery terminal play. The term does not include counterfeit cash or tokens; coins or currency of other countries received in a video lottery terminal; or cash taken in a fraudulent act perpetrated against a licensee for which the licensee is not reimbursed. For the purpose of this definition, the term “cash equivalent” means an asset that is readily convertible to United States currency and coin.
III. The phrase “enclosure of the facility” means all real or personal property used by the licensee in the placement and operation of video lottery terminals, including without limitation, the restaurants, bars, hotels, entertainment amenities, parking lots and buildings at the charitable gaming facility.
287-J:2 License Required.
I. An eligible game operator employer licensed under RSA 287-D may offer video lottery terminals provided such terminals are placed and operated within the enclosure of the facility at which the licensee holds its licensed activities under RSA 287-D.
II. In order to be eligible to offer video lottery terminals, the game operator employer shall have been licensed or eligible for licensure to sell pari-mutuel pools on historic horse races under RSA 287-D and under RSA 284:22-b as of the effective date of this chapter. A license shall not be transferred or sold.
287-J:3 Wagers.
A wager on a video lottery terminal may take place provided that:
I. The terminals have been tested by an independent testing laboratory, approved by the lottery commission, to ensure integrity and proper working order.
II. Each licensee shall submit a responsible gaming plan to the lottery commission for review annually. Such plan shall include identification of postings and materials related to problem gaming to be made available to patrons expressing concerns about problem gaming, house imposed player limits, and self-exclusion plans.
287-J:4 Rulemaking.
I. The lottery commission shall adopt rules under RSA 541-A governing video lottery terminals. The commission may adopt emergency rules pursuant to RSA 541-A:28, provided that, notwithstanding RSA 541-A:28, II, such emergency rules governing this chapter shall expire no later than 2 years following the publication of the emergency rule. The commission’s authority to adopt emergency rules under this section shall expire 2 years after the effective date of this section. The commission shall begin publishing emergency rules governing video lottery terminals no later than 45 days after the effective date of this section.
II. A game operator employer eligible to offer video lottery terminals shall be permitted to place and operate video lottery terminals upon approval by the commission of a comprehensive set of internal controls for the operation of such terminals. Internal controls for the operation of video lottery terminals approved in another jurisdiction in the United States that licenses and regulates such terminals shall satisfy this paragraph.
III. The following shall apply:
(a) No video lottery terminal shall be operated except within the enclosure of the facility of an eligible licensee during the facility's hours of play of charitable games.
(b) No person, association, corporation, or any other type of entity shall place and operate video lottery terminals without a license from the lottery commission.
287-J:5 Tax.
I. Each person, association, or corporation licensed to conduct wagering on video lottery terminals shall collect a sum equal to 30 percent of video lottery terminal revenues. Each licensee that conducts wagering on video lottery terminals shall distribute the amount collected under this paragraph as follows:
(a) 35 percent of the amount collected to charitable organizations with whom the licensee contracts on each licensed game date;
(b) 1/4 of one percent of the amount collected to the lottery commission for payment for problem gaming services;
(c) 4 3/4 percent of the amount collected to the group II retirement system under RSA 100-A; and
(d) The remainder of the amount collected to the lottery commission for use according to the special fund established under RSA 284:21-j.
II. Charitable organizations from within the executive council district where the licensee is located shall be given preference, and no charitable organization shall be eligible for more than 10 dates of revenue under this section within a 12 month period. Each licensee operating video lottery terminals shall contract with 2 licensed charitable organizations for each game date. The cash value of free bets and promotional credits shall be exempted from the calculation of revenue.
287-J:6 Unclaimed Ticket Money.
I. On or before January 31 of each year every person, association, or corporation conducting video lottery terminal wagering hereunder shall pay to the state treasurer all moneys collected during the previous year of wagering vouchers which have not been redeemed. The books or records of said person, association, or corporation, which clearly show the wagering vouchers entitled to reimbursement shall be forwarded to the lottery commission.
II. The state treasurer shall pay the amount due on any wagering voucher to the holder thereof from funds not otherwise appropriated upon an order from the lottery commission. Video lottery terminal vouchers which remain unclaimed after 11 months shall not be paid.
287-J:7 Penalty.
I. Except in cases where a stricter criminal penalty is provided, any person, association, corporation or any other type of entity that places, operates, supervises, manages, finances or owns a video lottery terminal without a license duly issued by the lottery commission shall be guilty of a misdemeanor, if a natural person, or guilty of a felony if any other person.
II. The lottery commission, with the assistance of the attorney general and the chief of police of any city or town where video lottery terminals are operated, shall administer and enforce the provisions of this chapter. In addition, the investigation and compliance division of the lottery commission may exercise all of its powers under RSA 284:3-a in furtherance of the enforcement of this chapter. Notwithstanding any other provision of law to the contrary, and in addition to any penalty under RSA 287-D, a violation of this chapter related to the placement and operation of video lottery terminals without a license shall be subject to the civil penalty provided for in RSA 284:3-a, IV. Each video lottery terminal placed, operated, supervised, managed, financed or owned by an unlicensed person and each day on which an unlicensed person engages in such conduct shall constitute a separate violation. Further, any video lottery terminal possessed by an unlicensed person shall be forfeited and may be seized by the commission, the attorney general and the chief of police for the city or town where the terminals are placed or operated acting pursuant to this chapter.
2 Racing and Charitable Gaming; Lottery Commission. Amend RSA 284:6-a, VI-VII to read as follows:
VI. The lottery commission shall not authorize the use of any electronic gaming device in connection with the acceptance of wagers on running or harness horse racing, whether live[,] or simulcast[ or historic], the type of which was not in use prior to January 1, 2011, unless specific authorization for such electronic gaming device is enacted by the general court. Electronic gaming devices shall mean and include all electro-mechanical instruments and devices used for the purposes of gaming, other than wagering on live[,] or simulcast[ or historic] horse racing, whether in physical presence or through the Internet, and such shall include, but not be limited to, video slot machines and other gambling devices which function or are designed to function to emulate a video slot machine. This section shall not be interpreted to prohibit licensees under RSA 284 from replacing equipment used in the conduct of wagering on live or simulcast horse racing, which type of equipment was in service prior to January 1, 2011, with updated or new equipment which are the functional equivalent of the machines which are being replaced, provided the equipment is not an electronic gaming device as described in the previous sentence. This section shall not be interpreted as prohibiting licensees from accepting account wagers in compliance with applicable rules and regulations.
[VII. Notwithstanding paragraph VI, the lottery commission shall authorize wagers on historic horse races, whether on an electronic gaming device or otherwise, so long as such wagers meet the requirements of this chapter. Historic horse racing machines shall be programmed and operated for pari-mutuel wagering only.]
3 Unclaimed Ticket Money. Amend RSA 284:31 to read as follows:
284:31 Unclaimed Ticket Money. Every person, association, or corporation conducting a race or race meet, whether live racing[,] or simulcast racing[, or historic horse racing] hereunder shall pay to the state treasurer all moneys collected during the previous year of pari-mutuel pool tickets and vouchers which have not been redeemed. Such moneys shall become a part of the special fund established in RSA 284:21-j. The state treasurer shall pay the amount due on any ticket or voucher to the holder thereof from funds not otherwise appropriated upon an order from the lottery commission. Pari-mutuel tickets and vouchers which remain unclaimed after 12 months shall not be paid. On or before July 1 of every year, said person, association or corporation shall submit to the treasurer a check for any unclaimed money during the previous fiscal year, along with a gaming operator's written report for the previous fiscal year's unclaimed money, which shall itemize both the unclaimed tickets and vouchers and the unclaimed amounts therefrom. A copy of the report shall be forwarded to the lottery commission. For the first biennial year after the effective date of this section, the report shall cover both years of the previous biennium.
4 Trespassing; Rights of Licensee. Amend RSA 284:39, I to read as follows:
I. Any licensee under this chapter may refuse admission to, or eject from, the grounds or the enclosure of the racetrack or facility where a licensed live race or race meet or is being held or where licensed simulcasting [or historic horse racing] is held, any person or persons whose presence or conduct, in the sole judgment of the licensee, is inconsistent with the orderly and proper conduct of the [historic horse racing,] live or simulcast race meet, or is detrimental to the sport of racing, whether or not such presence or offensive conduct is associated with gambling.
5 Repeal. The following are repealed:
I. RSA 284:21-h, VIII, relative to authorization of wagers on historic horse races.
II. RSA 284:22-b, relative to pari-mutuel pools on historic horse races.
III. RSA 284:23, I(d), relative to historic horse racing taxes.
I. Section 1 of this act shall take effect upon its passage.
II. The remainder of this act shall take effect January 1, 2028.
25-0720
Revised 3/7/25
HB 728-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT:
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Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $2,762,973 | $33,155,689 | Indeterminable Increase | ||
Revenue Fund(s) | Restricted Revenue for Problem Gaming Services and New Hampshire Retirement System, and Lottery Fund/Education Trust Fund - Lottery revenue is credited to the lottery fund, with net revenues after expenditures being credited to the state education trust fund. | |||||
Expenditures* | $0 | Lottery: FY 26 - $147,000 FY 27 - $301,000 FY 28 - $311,000/ Indeterminable impact related to penalties
| ||||
Funding Source(s) | Lottery Fund/Education Trust Fund - Lottery revenue is credited to the lottery fund, with net revenues after expenditures being credited to the state education trust fund. | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
Estimated Political Subdivision Impact | ||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 |
County Revenue | $0 | $0 | $0 | $0 |
County Expenditures | Indeterminable | |||
Local Revenue | $0 | $0 | $0 | $0 |
Local Expenditures | Indeterminable | |||
METHODOLOGY:
The Lottery Commission states this bill:
The Lottery Commission has provided the following assumptions relative to this bill:
Based on the assumptions stated above, this bill will have the following revenue impact:
Current Law – HHR Revenue Estimate | |
# Terminals | 4,300 |
Terminal Revenue Per Day | $230 |
# Days | 365 |
Gross Revenue | $360,985,000 |
Amount to Game Operator - 75% | $270,738,750 |
Amount to Lottery Commission - 16.25% | $58,660,063 |
Amount to Charities - 8.75% | $31,586,188 |
Proposed – VLT Revenue Estimate | |
# Terminals | 4,300 |
Terminal Revenue Per Day | $300 |
# Days | 365 |
Gross Revenue | $470,850,000 |
Amount to Game Operator - 70.0% | $329,595,000 |
Amount to Lottery Commission - 18% | $84,753,000 |
Amount to Charities - 10.5% | $49,439,250 |
Amount to Problem Gaming Services - 0.075% | $353,138 |
Amount to Group II Retirement - 1.425% | $6,709,613 |
Revenue Increase | |
Gross Revenue | $109,865,000 |
Amount to Game Operator | $58,856,250 |
Amount to Lottery Commission | $26,092,938 |
Amount to Charities | $17,853,063 |
Amount to Problem Gaming Services | $353,138 |
Amount to Group II Retirement | $6,709,613 |
This bill is estimated to increase Lottery Fund revenue by approximately $2,174,411 in FY 2026 (one month of operation) and $26,092,938 in FY 2027. This bill will also increase revenue designated for problem gaming services by $29,428 in FY 2026 and $353,138 in FY 2027. Lastly, this bill will increase revenue to the New Hampshire Retirement System in the amount of $559,134 in FY 2026 and $6,709,613 in FY 2027, to which are assumed would be applied to the Group II unfunded liability, reducing employer contribution rates in future years. The Lottery Commission has not provided gaming revenue estimates beyond FY 2027.
The Lottery Commission states to effectively implement the proposed legislation and oversee gaming operations, an additional Gaming Investigator, Auditor, and Controller will be needed. Assuming a hire date of January 1, 2026, to allow a 3-month training period before game operators are expected to begin replacing HHR terminals on a large scale, the Commission estimates its expenditures would increase by $147,000 in FY 2026, $301,000 in FY 2027, and $311,000 in FY 2028.
This bill adds, deletes, or modifies a criminal penalty, or changes statute to which there is a penalty for violation. Therefore, this bill may have an impact on the judicial and correctional systems, which could affect prosecution, incarceration, probation, and parole costs, for the state, as well as county and local governments. A summary of such costs can be found at https://gencourt.state.nh.us/lba/Budget/Fiscal_Notes/JudicialCorrectionalCosts.pdf
AGENCIES CONTACTED:
Lottery Commission, Judicial Branch, Judicial Council, Department of Justice, Department of Corrections, New Hampshire Association of Counties, and New Hampshire Municipal Association