Monthly Archives: October 2011

Gambling Compliance

Long a graveyard for casino bills, the New Hampshire House of Representatives is showing new found interest in casino legislation, with a key committee vote looming this week.

 

In a sign of a potential shift, some lawmakers who had been opposed in the past to casino gambling now say they are reconsidering their positions.

 

Chief among them is the chairman of the influential House Ways and Means committee, Steven Stepanek (RAmherst), who intends to vote for the latest casino bill when his panel takes it up on Thursday.

 

New Hampshire’s decision to take another look at casinos comes amid the growing threat that Massachusetts, its long- time bête noir, may jump first.

 

“I think Massachusetts has changed the dynamic of what is going on,” Stepanek said. “There are more people taking a hard look at it.”

 

The House Ways and Means chairman said he has shifted his position on the casino bill out of concern the Granite State will get hit with a double whammy should Massachusetts strike first and legalize a trio of destination casinos as well as one slots parlor.

 

New Hampshire will not only lose tens of millions in revenue, he said, pointing to a recent study but it will also get stuck with the bill for the social problems the new Massachusetts casinos will create, such as an increase in problem gamblers.

 

By legalizing casinos, the Granite State can keep gambling dollars at home while also having the extra money on hand to deal with any increase in gambling addiction.

 

“Frankly, no one has given me a method by which we can send a bill to Massachusetts to pay for the problems we would incur from New Hampshire residents going to their casinos,” Stepanek said

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In fact, the latest casino proposal, which would authorize a single casino followed a second gambling complex a few years later, has already passed a key test.

 

A subcommittee of the House Ways and Means recently voted 4-1, to pass the casino bill on to the full committee.

 

The two casino licenses would be put out to bid in a state- wide competition, with each authorized to roll out up to 5,000 slot machines.

 

If it manages to get past House Ways and Means with a favorable recommendation, it would be the first gambling bill to be recommended by a key House committee in years.

 

After that, it will be sent to the full House, though a vote will not happen until after the new legislative session begins in January.

“I think what we are seeing is a new tact being taken by proponents and it has a lot to do with Massachusetts,” said Andrew Smith, director of the University of New Hampshire Survey Center.

 

“Before it was ‘gambling will raise a lot of money’. Now it is if Massachusetts is going to legalize it, we might as well get some of the benefits because we are going to get hit with massive social costs.”

 

Yet the odds are still against passage in the House, which rejected a casino bill last year by a lopsided, 212-158 margin, prompting industry observers to predict the end of any serious casino campaign for years.

 

One obstacle is the sheer size of the House, which boasts of being one of the largest, democratically- elected legislative bodies in the world.

 

There are more than 400 representatives, which, in a relatively small state like New Hampshire, means that micro- politics reign. While outright gambling foes are in the minority, their votes can mean a lot in a legislative district the size of a small town.

 

“Absolutely, it’s going be tough,” said New Hampshire state Sen. Lou D’Allesandro, (D- Manchester). “It’s never easy to get anything through. You have 400 members in the House. It’s like Congress.”

 

But the resurgence of casino legislation in Massachusetts, which is on the brink of legalizing thousands of slot machines, has revived what had been a dormant casino debate in New Hampshire.

 

The two New England states have a long running feud based in very different political philosophies, with New Hampshire a traditionally Republican, fiscally conservative state in contrast to Massachusetts, seen as a bastion of liberalism across the U.S.

 

The two states have a history of economic rivalry as well, with New Hampshire getting the best of its much larger neighbor with a no sales tax policy, which has lured shoppers, and stores, to the northern side of the border.

 

While New Hampshire officials do not ever like to admit following the lead of their southern neighbor, in the case of casino gambling, the consequences of ignoring what is happening in Massachusetts could prove severe.

 

After years of debate and misfires, the Bay State’s top elected leaders have finally hammered out a gambling bill with which they all can live. Both the House and Senate have passed legislation, which is now heading to a conference committee to iron out the differences between the two measures.

 

A final bill is likely to hit Governor Deval Patrick’s desk in November, with all indications so far that he will sign it.

When that happens, it could send a second major shockwave through Concord, New Hampshire’s state capitol, just a month or so before Granite State legislators reconvene and take up their own casino gambling bill.

 

If a bill does make it through the House, it should face far fewer challenges in the comparatively tiny 24-member Senate, which has voted in the past in favor of expanded gambling.

 

“We have passed it on numerous occasions in the Senate,” D’Allesandro said.

 

As it stands, the major roadblock to casino gambling in New Hampshire can be found in the legislature, not in public opinion, which has a fairly laid back view of casinos.

 

While New Hampshire is a fiscally conservative state, it lacks a strong block of socially conservative voters for whom gambling is a moral issue, Smith notes.

 

In fact, there is a long tradition of cashing in on “sin” taxes, from the nation’s first state lottery, to state- owned liquor stores placed conveniently along interstate highways.

 

“When it comes to sin taxes, they are more than happy to have other people pay for things in the state,” UNH’s Smith said.

 

By Kevin Landrigan – Nashua Telegraph

CONCORD – A bill making it legal to have two casinos in New Hampshire won overwhelming support from a key House panel Thursday.

The plan legally would create two casinos each with up to 5,000 slot machines and 150 table games.

The first could open within a year of this bill becoming law but the earliest the second casino could be built would be two years after the first.

All state profits from casino gambling would be used to reduce the state’s two main taxes on business.

State Rep. Steve Stepanek, R-Amherst, said devoting the profits to business tax breaks was the reason he changed his mind from becoming an opponent to the chief architect of this revised bill (HB 593).

“I think that is a very critical component,” Stepanek said.

The owners of two casinos – Rockingham Park in Salem and the Greenmeadow Golf Club property in Hudson – are leading contenders to bid.

Millennium Gaming has a $450 million casino plan for Rockingham Park while Greenmeadow partners has broadly shopped a $300 million project.

“We are fully prepared to bid on the first license, and that obviously, if we weren’t successful, this would put us in a good position to receive the second license,” said David Friel, one of the principal owners of the Greenmeadow property. “What this bill does is make sure the license gets awarded to the very best project and that’s a good thing.”

The impending threat of casino gaming in Massachusetts and the resulting loss of hospitality business played a major role in resurrecting an issue many observers declared was going to stay dormant until after the 2012 elections.

The 14-7 vote from the House Ways and Means Committee sends this measure to the House early next year with more momentum than any expanded gambling proposal ever has.

This is believed to be the first time that a House committee has ever supported slot machine or casino style gambling.

But the cause has a long way to go.

House Speaker William O’Brien, R-Mont Vernon, hasn’t weighed to support this but has publicly praised the idea of diverting any state profits from it to business tax cuts.

House Majority Leader D.J. Bettencourt, R-Salem, said the success of this initiative rests on Gov. John Lynch.

“If New Hampshire does not take action now, we could see a decimation of our lottery income with no alternative left to make up for the lost revenues,” said Bettencourt who supports casino gambling.

“Once we hear from Gov. Lynch and what his intentions are, we can then begin to truly evaluate the chances for the success of this legislation. Until his intentions are known, and we become more comfortable with the views of our caucus, this will remain a vote of conscience for Republicans.”

For his part, Lynch told reporters his skepticism about expanded gambling have not changed.

“I have serous concerns about expanded gambling in New Hampshire. I have concerns about a lack of regulatory restructure, proliferation of gambling and the impact on our quality of life,” said Lynch, who added he had not read the latest bill. “Those are concerns I have in general about expanded gambling.”

Two years ago, Lynch threatened to veto a Senate-passed plan to allow up to six slot machine parlors in the state.

The Center for New Hampshire Public Policy Studies estimates that once three Massachusetts casinos open, the state would lose more than $75 million a year in hospitality business.

“It is the vehicle we can use to create jobs, reduce taxes and increase revenues,” said Rep. Gary Azarian, R-Salem.

If the state fails to act, it will get the social costs such as addicted gamblers and increased street crime from those who go to Massachusetts casinos and receive none of the financial benefit, Stepanek said.

“The only thing we don’t have is the offsetting positive revenue stream that you get from gambling,” Stepanek added.

Rep. Susan Almy, D-Lebanon, maintained this would bring low-wage jobs and not lead to much new business other than New Hampshire residents coming to bet on slots and horse or dog racing.

“I don’t see anything coming out of this other than a racino; a slots and racing barn,” Almy said. “It will be for people from New Hampshire; it’s not going to bring money in to New Hampshire.”

Critics objected giving a casino license in New Hampshire for $50 million apiece compared to other states that have a competitive auction.

“The appropriate title for this bill is the great giveaway,” said state Rep. David Hess, R-Hooksett, a longtime, anti-gambling legislator and former state prosecutor. “It provides monopolies to two entities on a non-competitive basis.”

Hess maintained lawmakers were rushing the bill through as an over-reaction to events in Massachusetts.

“Do you think we might be missing something? I think we are because this is a rush to judgment,” Hess argued.

The amended bill removed any requirement that investors had to pump in $450 million into a new project.

Azarian said taking out any capital investment raises the likelihood there will be casino plans for less populated areas like the North Country.

 

By Jake O’Donnell – Salem Patch

The Granite State moved one step closer Thursday to expanded gaming legislation reaching the floor of the House of Representative next session.

The House Ways and Means Committee passed House Bill 593, legislation aimed at expanding video lottery and table gambling, by a 14-7 vote on Thursday.

Salem’s Rockingham Park has long been discussed as a possible target for expanded gaming however every attempt for casinos in New Hampshire has failed in the past.

House Majority Leader D.J. Bettencourt (R-Salem) was pleased with the vote and expressed support for the “responsible expanded gaming legislation” in a statement.

“It will not only create jobs, cut business taxes and increase the revenue stream into our state, but it is also in complete compliance with the N.H. Republican Party platform,” Bettencourt said. “While I have yet to get a concrete temperature of our caucus on this issue, the recent actions in our neighboring states of Massachusetts and Maine should certainly give cause to those who have opposed gaming in the past to perhaps reevaluate their position.”

As discussed at a recent forum at Rockingham Park, the Bay State appears close to passing expanded gaming legislation itself and groups like Fix It Now New Hampshire have been advocating for the Granite State to pass similar legislation.

“To my knowledge this is the first time that a gaming bill has received a favorable recommendation from a House policy committee, which demonstrates that the reevaluation process for some has already commenced,” Bettencourt said.

He warned that without action lottery incomes could be lost with “no alternative” to make up for the revenues lost. He said the position of Gov. John Lynch on the bill will determine “the chances for the success of this legislation.”

The earliest a bill could reach the floor of the House for a vote is January.

Earlier today WMUR reported that under this proposal, the Lottery Commission would grant two $50 million licenses two years apart for casinos, with sponsors wanting to use the profits to offset business taxes.

A recent unscientific Salem Patch poll found readers overwhelmingly support expanded gaming at Rockingham Park.

According to tweets from Fix It Now New Hampshire’s Twitter page, the voting on the bill broke down as follows:

YEA: Stephen Stepanek (R-Milford), Bill Ohm (R-Nashua), Christine Hamm (D-Hopkinton), Mary Griffin (R-Windham), Frank Sapareto (R-Derry), Jordan Ulery (R-Hudson), Russell Ober (R-Hudson), Robert Elliott (R-Salem), Gary Azarian (R-Salem), John McDonnell (R-Chichester), Keith Murphy (R-Bedford), Wyman Shuler (R-East Kington), William Butynski (D-Hinsdale), Duffy Daugherty (R-Colebrook).

NAY: David Hess (R-Hooksett), Laurie Sanborn (R-Henniker), Norman Major (R-Plaistow), Susan Almy (D-Lebanon), Joe Osgood (R-Claremont), Mary Cooney (D-Plymouth), Laurie Harding (D-Lebanon).

 

By Aaron Sanborn – Seacoast Online

EXETER — A day after making her bid for governor official, Maggie Hassan continued to stress education and job creation as the two main focuses of her campaign.

The former Democratic N.H. Senate majority leader from Exeter brought up those two topics on multiple occasions during a brief interview Wednesday afternoon at the Loaf and Ladle.

Hassan has not yet announced a job creation plan, but said identifying job creation as a top goal, along with making New Hampshire the No. 1 work force in America, are the important first steps to turning the state’s economy around.

“We will be developing more policy proposals as the campaign proceeds, but what we do know is that the best way to attract businesses to a state is to have a work force that is well-educated and ready with the skill sets that businesses need,” she said. “What we need to do is create jobs and to be innovative, both in terms of job creation and in terms of how we run state government and the best way to approach that is to come together with people and find out what they need to create jobs.”

Hassan said, once those needs are identified, the focus then needs to be on generating funds to fill those needs and doing so within the state’s revenue structure.

That’s where being innovative in both the public and private sectors comes into play, she said.

“You do these things a step at a time. Innovation doesn’t come around because one person has a single idea; it comes from people coming together and brainstorming and figuring out what their priorities and goals are and how we can meet them,” she said. “It may take some restructuring in government, it may take continuing Gov. John Lynch’s work on modernizing certain agencies and certain services, taking advantage of computer technology and virtual communication. But at the end of the day, if you create jobs and improve the economy, we’re going to have the revenue stream.”

Hassan said the state also needs to be open to examining other possible revenue streams, such as expanded gambling.

She previously supported limited expansion of gambling at Rockingham Park as part of Senate budget negotiations in 2008, but the Senate rejected the proposal. A year later, she held an invitation-only meeting with Seacoast state representatives and Millennium Gaming to discuss expanding gambling in New Hampshire.

“With Massachusetts very likely to support gambling and building casinos, I think it’s worth taking a look at whether we should have at least one gambling location,” she said. “Because, otherwise, what’s going to happen is people will go over the border into Massachusetts and spend their money there, funding Massachusetts roads, bridges and schools with their gambling money, and then come back to New Hampshire with the same social problems gambling sometimes causes.”

Hassan noted that education goes hand-in-hand with her goals of job creation and improving the economy, and pointed to the cut in the tobacco tax and the cuts to the state’s community colleges and university systems as two things she would like to revisit if elected governor.

“Granite-Staters believe in education and they know that one of our strengths has been an educated work force,” she said.

Hassan said she is also against cutting funding to programs that help those with mental and physical disabilities, the elderly and programs that help to get people back to work.

She has pledged to veto any sales or income tax.

In responding to a question about how to unite Democrats and Republicans in the Legislature, Hassan said she has the experience to do so.

Referring to her time in the state Senate from 2004 to 2010, Hassan said there were times when she supported pieces of legislation that members of the other party objected to but still managed to work through the issues.

She said she always focused on the common ground to work with, rather than focusing on the disagreements.

“The combination of skills that you need to have is the ability to find people who have that common ground and want to solve a problem and bring them together regardless of party,” she said. “But you also have to be able to stand up to people who are being extreme or unreasonable, and throughout my career I’ve shown an ability to do both.”

Hassan also referenced her experience working with Lynch to pass the previous biennium state budget.

“That was a budget that was heavily criticized by Republicans, but in fact we came away from the budget with a surplus,” she said. “I have a record of making difficult budget decisions but fiscally discipline and prudent ones.”

Outside of her Senate experience, Hassan has served as a business lawyer for 20 years and worked as associate general counsel for Brigham and Women’s Hospital in Boston.

Hassan said she plans on running a “grass-roots” campaign that includes traveling around the state and listening to what people have to say.

 

PROVIDENCE, R.I. (WPRI) – Rhode Island lawmakers have revised legislation that would let voters decide whether to turn Twin River into a full scale casino.

According to the Providence Journal, the reworked bill adds financial relief for Rhode Island’s other video slot parlor, Newport Grand, and provides more money for companies like Providence-based GTECH, which supply gambling machines to the state.

The legislation also calls for the General Assembly to study and lay out the rules for regulating casino gambling in Rhode Island if it is approved by voters.

The Providence Journal reports that the revised bill may be added as an amendment to the House 2012 budget, which is scheduled for a vote on Friday.