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Thursday
May012014

Hemingway For Governor - ANDREW HEMINGWAY'S EXPANDED GAMING PROPOSAL 

ANDREW HEMINGWAY PROPOSAL TO ADDRESS EXPANDED GAMING ISSUE IN NH

Background:

NH has a long history of state approved gaming and gambling revenue through its scratch ticket and shared jackpot games such as Powerball, Megabucks etc.

Ø  In 1964, New Hampshire became the first state in the country to establish a modern lottery system.

Ø  For years, lawmakers in NH have proposed variations of expanded gambling proposals in NH, most prominently, a one/or two casino proposal to allow companies to bid for “campus-style” casino.

This proposal has been opposed by many businesses and individuals for several reasons including:

Ø  NH, due to poor budgetary decision making over the past decade, has found itself in financial strife requiring a combination of needs between trimming the budget and finding new and sustainable forms of increased revenue.  We cannot do this on the backs of taxpayers (individuals or businesses) as they are stretched to the limits already.

Ø  NH currently has eight fulltime charitable gaming facilities in the State.  These gaming facilities are allowed multiple table games such as Poker, Craps, Black Jack, Roulette and more, but are not allowed slot machines.

Ø  Of the Net revenue taken in last year, these gaming facilities split its revenue as follows:

            35% to a Charity

            10% to the State of NH

55% to the House

That formula, last year, brought in $4.8 million to charities and $1.3 million to the state.

 

HEMINGWAY PROPOSAL FOR EXPANDED CHARITY GAMING

The free market is always the best test site for any new proposal.  By expanding existing charitable gaming operations to allow for limited slot machines we can raise revenue for charities, the state, and municipalities.

Ø  Allow the eight existing charitable gaming facilities to have a permit for 150 slot machines at those existing facilities.

Ø  Allow those same eight facilities to have up to 50 additional permits for slot machines they will then host in other facilities as approved by municipalities.

o   These numbers may grow and change over a period of years, but this should be used as a beta test for the concept to make sure revenues and charitable donations are a benefit.

Ø  While the table games’ formula for dividing the revenue should stay the same, as there is a significant level of overhead to manage table gaming, the revenue split for slot machine gaming should be as follows:

35% Charity

25% State

2% Municipality

38% House/Hosting Facility

Ø  Using a conservative estimate of $150.00 per machine per day (understanding this an average as some locations, seasons and days are better than others) the numbers look as follows:

1600 machines x $150.00 = $240,000 per day
$240,000 x 365 = $87,600,000 per year
 

@

35% to charity: $30,660,000

25% to state: $21,900,000

2% to municipality: $1, 752,000

38% Remainder to House/hosting facility

Ø  In addition to the direct numbers as seen above, the large amount donated to nearly 300 charities allows for their success without the need for increased state funded assistance.

 

 

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