NH Lawmakers to Protect Charities from Casino Rental Fees

New Hampshire currently has a unique charitable gaming model. Registered charities in the state can receive up to 35% of the casino revenue generated on specific charitable gaming days. However, the regulations allow casinos across the state to charge rent that comes out of the charities’ share. This rent applies for gaming days and imposes a fee that is “fair rental value of the property for any use.”

Considering such fees, the proceeds to charities from gaming days may significantly decrease from the 35% on casino revenue. Identifying this as a problem, New Hampshire lawmakers are currently exploring options to change the existing charitable gaming laws and ensure that more proceeds are generated for charities across the state.

A recent report released by the Concord Monitor suggests that the rental fees imposed by casinos can sometimes cut donations to charities in half. Considering that the fees depend on the venue, the rental fee for The River and Casino Bar located in Nashua is $600, while the Brook and The Moose Casino and Tavern charge $375 per day. On the other hand, Wonder Casino’s fees for charities on game days vary between $375 and $750 per day.

While this doesn’t sound like a lot, the recent report estimated that Concord Casino has accumulated some $80,000 for the first half of the year. This money would otherwise have benefitted charities if not for the rental fees. Moreover, as one of the largest casinos in the state, Concord’s annual revenues are approximately $1 million.

An Outdated Model

Recently, New Hampshire gathered a commission that has a goal to assess the current charitable gaming regulations. This commission will seek to determine best practices, study the growth and examine the charitable gaming market in the state. Efforts to change the existing legislation and possibly repeal the rental charges casinos impose for charities on gaming days are expected next year.

“The model has basically outgrown what it was back in the days of early charitable gaming. It was very, very small profit margins for both people who are running the operation (and) for the charities themselves.“

Fred Doucette, member of the NH House of Representatives

According to Fred Doucette, a member of the New Hampshire House of Representatives, the current charitable gaming model is outdated. He explained that this model dates back to the early days of charitable gaming when profits for casinos and charities were insignificant. Doucette said that “the rent component was definitely long overdue for being written out of the statute.”  He is one of the supporters who seeks to introduce a bill that removes the rental fees applicable to charities.