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... more in depth conversations. 3. What is Gaming? Lottery (Powerball/ Megabucks) ... TriState Megabucks $10.5 million. Tri State Daily Pick 3 Pick 4 $10.5 million ... – PowerPoint PPT presentation

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1
Gaming in NH TodayGaming Study
CommissionSeptember 15, 2009
NH Center for Public Policy Studies
2
Purpose of Presentation
  • Review Centers Work
  • 30,000 foot view of existing gaming activities in
    the state.
  • Gaming Revenues
  • Magnitude
  • Changes over time
  • Set stage for more in depth conversations.

3
What is Gaming?
  • Lottery (Powerball/ Megabucks)
  • Scratch tickets
  • Poker games
  • Games of chance
  • Dog and Horse Racing
  • Pari-mutuel wagering
  • Casinos
  • Bingo/Lucky 7
  • Gray Machines Poker
  • Office Betting Pools
  • Issues to Consider
  • Legal/Illegal
  • In/Out of State
  • On-Line
  • Authority and ability to control
  • Accuracy of Data

4
Legal Wagering by New Hampshire Residents
5
State Lottery
  • The games run under the direction of the NH
    Lottery Commission brought in 261 million in
    FY2008 (total sales).
  • Prizes were 155 million and total expense were
    (31 million).
  • 75 million (261-186) was distributed to
    education trust fund in FY2008.
  • Change over time?
  • NH Lottery Revenue declined by 1.1 from 2007 to
    2008.
  • Instant game revenue was down 4.5 million, Hot
    Lotto down by 1.1 million, but Powerball was up
    by 2 million. (Source NH Lottery CAFR2008)

6
State Lottery
  • Breakdown of 261 million in Lottery receipts in
    FY2008 by major game (excludes NH residents
    purchasing out of state)
  • Instant Games (scratch tickets) 184 million
  • Powerball 46.4 million
  • TriState Megabucks 10.5 million
  • Tri State Daily Pick 3 Pick 4 10.5 million
  • Tri State Other Games 5.8 million
  • Hot Lotto and MUSL Games 3.5 million

7
Racing/Charitable Gaming Wagers in 2008
  • Live dog and horse racing, pari-mutel
  • Live racing 4.5 m
  • pari-mutuel wagers 220.5 m
  • Gaming for Charitable Organizations
  • Bingo 17m
  • Lucky-7 Tickets 64 m
  • Charitable Games of Chance 45m
  • For a total of 352 million in racing and gaming
    wagers

Source 2008 Racing and Charitable Gaming
Commission report
8
Racing/Charitable Gaming Revenue
  • State revenue after expenses collected.
  • Simulcast wagering - 2.1m
  • Live Racing - 0.2m
  • Bingo - 1.3m
  • Games of Chance 0.6m
  • Change?
  • Racetrack pari-mutuel activities 2007-2008 20
    reduction.
  • State revenue from gaming activities for the year
    2008 increased from 2007 by 33 mainly due to the
    new Games of Chance assessment fee that impacted
    the second half of the year.
  • New Hampshire charities received over 11.6
    million dollars to further their causes in 2008
    from all charitable gaming. (Commission report)

9
NH Residents gambling outside of NH
  • In 2007 New Hampshire residents spent 79.3
    million at New Englands gaming facilities,
    indirectly paying 11.3 million in gaming and
    sales taxes to CT, RI and ME (source
    UMASS/Dartmouth 9/16/2008)
  • 46 million at Foxwoods
  • 30 million at Mohegan Sun
  • 2.5 million at Twin River (RI)
  • 0.2 million at Newport Grand (RI)
  • 0.8 million at Hollywood (ME)
  • Does not include gaming outside of New England
    (Atlantic City, Las Vegas)

10
Estimates of Gambling Winnings
  • In the 2009 session the Legislature imposed a new
    tax of 10 percent on
  • (a) Gambling winnings of New Hampshire residents
    from anywhere derived. (based on IRS form W2G)
  • (b) Gambling winnings of nonresidents of New
    Hampshire derived from New Hampshire entities.
  • DRA The Gambling Winnings tax is estimated to
    yield 5.9 million in FY2010, 7.9 million in
    FY2011 (from HB1)
  • Base gambling winnings in NH are estimated at
    59 million in 2010 and 79 million in 2011.
  • Assume that reported winnings represent 5-10
    Percent of all (legal) wagers, according to DRA
    estimate total (legal) wagers by NH residents
    could be as high as 1billion.

11
Summary
  • State relationship to wagering varies
    considerably.
  • Lottery (State run keep the difference between
    revenue and expenses)
  • Racing (Private enterprise state keeps a
    percentage of activity)
  • Charitable Gaming (Private enterprise state
    keeps a percentage of activity).
  • Legal wagering by NH residents estimated at 750
    million to 1 billion per year - not including
    non New England gambling, and illegal wagering
    (online, office pools, gray club machines etc.)
  • State takes in about 80 million per year, most
    of that from the NH Lottery.
  • Represents 3.2 of unrestricted revenues.

12
Gaming about 3 of Unrestricted Revenue
13
Gaming Revenues as Percent of Total State Revenue
14
?
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