New Hampshire’s casino industry is growing rapidly, with 12 active casinos and four more in the pipeline, yet none are locally owned.

Originally intended to be small, locally owned establishments designed to support local charities and nonprofits, many of these casinos owned by major out-of-state corporations have transformed into expansive entertainment hubs.

Patrick Abrami, chair of the state’s gaming commission responsible for studying changes in charitable gaming, noted that the industry has significantly evolved in New Hampshire since the introduction of the first charitable gaming model by the legislature in 2006.

“This was a very mom-and-pop thing, all locally owned and there really isn’t any locally owned left,” said Abrami. “Everything has changed.”

The last locally-owned casino in New Hampshire is Concord Casino, but that could soon change.

Owner Andy Sanborn is now in a race to sell the casino after being ordered to shut down operations. This follows a ruling made after an investigation found that Sanborn had fraudulently applied for and misused pandemic relief funds not for casinos. Sanborn is required to sell the business by Sept. 30 or he will face a two-year license revocation.

One of the buyers interested in acquiring Sanborn’s casino is Full House Resorts Inc., a Las Vegas-based, publicly traded gambling company.

The concept of charitable gaming in New Hampshire started as a solution for charities to sidestep the logistical challenges of maintaining poker tables, chips, or roulette wheels for traditional casino nights. These events, often tucked away in the basements of nonprofits, churches, and other facilities, discovered a new, more convenient venue in dedicated locations.

This shift allowed charities to host game nights with greater ease.

The original idea envisioned these venues as small, locally owned casinos, providing a more streamlined and accessible way for charities to raise funds.

Today, however, many of these casinos — primarily owned by companies from Las Vegas and Los Angeles — have evolved beyond simple gaming operations. They now offer comprehensive entertainment experiences, including restaurants, live shows, and high-stakes gaming.

Despite this shift, Abrami remains confident that New Hampshire will not change into a gaming mecca like other states.

“We would never become like Vegas, because we’re already pumping the brakes,” said Abrami. “We are not worried about it, other than ownerships coming in from the outside. We just want to be careful.”

State’s appeal for casinos

Gaming companies are eyeing New Hampshire as a prime location because it’s one of the few states that permits Historical Horse Racing (HHR). Kentucky, Virginia, Arkansas, Colorado and Wyoming, are the only other states that allow this.

“New Hampshire presented itself with a unique opportunity to pursue historical horse racing in conjunction with charitable gaming,” said Marc Falcone, managing partner of ECL Entertainment, LLC, which operates the Lucky Moose Casino and Tavern and the River Casino and Sports Bar in Nashua. “I think the model of just simply charitable table games is not economically viable.”

ECL Entertainment owns and operates several gaming locations in Nevada, where it is based.

In New Hampshire’s charitable gaming model, casinos must donate at least 35% of table game revenue to charities and nonprofits, 10% to the state, and can retain the remaining share.

However, HHR offers a more lucrative arrangement for casinos.

In this model, casinos receive 12% of the handle, which is the amount of money wagered by bettors. Of this revenue, game operators retain 75%, while charities receive 8.75%.

For historical horse racing, there are two charities scheduled simultaneously, each receiving 4.37% of the revenue. The state benefits as well, taking in 16.25% of the total revenue.

In May, the 12 casinos with table games and chance games generated $3.4 million for the game operators while the 10 casinos with historical horse racing machines significantly outperformed them, bringing in $10.7 million for the operators.

Spectrum Gaming Group, based in Pennsylvania, has been hired by the gaming commission to study the landscape of charitable gaming in New Hampshire.

Their primary focus will be on historical horse racing (HHR) to assess if the state and charities are receiving a fair share of the revenue from these machines.

“We feel more confident about the revenue percentages from table games,” Abrami said, “compared to those from historical horse racing machines.”

At the same time, this year’s legislature extended the HHR moratorium that expired in July for another seven years.

This moratorium does not limit the number of facilities but the number of facilities that can have HHR machines. The maximum HHR licenses that can be held in the state is 19. 

The aim is to give the state time to thoroughly evaluate the industry and establish more robust regulations.

Falcone said that having HHR machines enables casinos to have the capability to build venues with more expansive experiences for customers.

An example is ECL Entertainment’s new project in Nashua, “The Nash Casino.”

Set in the former Sears building at Pheasant Lane Mall, this 130,000-square-foot venue will feature table games and HHR machines, alongside a two-story sports entertainment complex, including a full bar, non-gambling games like pool, shuffleboard, foosball, and golf simulators, as well as three restaurants.

“That process of integrating proven operators into the charitable HHR market, I think will have positive impacts across the board for New Hampshire, not only from a quality of experience, but the dollars invested in the new jobs created,” explained Falcone. “Ultimately, I think it’ll prove to be a worthy venture by the legislature to include HHR in the broader perspective of entertainment options in New Hampshire.”

Ownership concerns

Another issue the gaming commission is examining is ownership.

Currently, Peninsula Pacific Entertainment LLC, based in Los Angeles, operates as New Hampshire Group LLC and owns four casinos in New Hampshire – Wonder Casino, Dover Poker Room, Filotimo Casino, and   Lebanon Poker Room.

The same company also owns two more new casinos — Conway Poker Room & Casino and Northwoods Casino — which are awaiting licensing approval or are under construction.

“We don’t want one big monopoly,” said Abrami. “The big guys could come in and just buy everybody out.”

The gaming commission is also exploring whether rotating charities into a 10-day schedule with casinos is the right choice.

A report from Spectrum is expected in August, which will compare New Hampshire’s charitable gaming practices with other states and suggest potential improvements or changes to current laws.

“What don’t we have that we need because these places are getting bigger?” said Abrami. “What are other safeguards that we need to protect everybody? That’s what we’re up to.”

Sruthi Gopalakrishnan can be reached at sgopalakrishnan@cmonitor.com