New Hampshire is on the brink of a significant change in its charitable gaming landscape, which may reshape the way nonprofits benefit from casino operations. The state’s unique regulatory framework has long mandated that a substantial portion of casino revenues be allocated to charitable organizations. A recent bill, which has successfully passed the state Senate, aims to adjust the existing rules governing the number of days a charity can be designated as a beneficiary at casinos. This proposed change has sparked discussions about the role of smaller nonprofits in the gaming sector and how the legislation can create a more equitable environment for charitable organizations in New Hampshire.
Currently, under New Hampshire law, charities can be the beneficiary of casino activities for up to ten days each year. However, Senate Bill 542, spearheaded by state Senator Tim Lang (R-Sanbornton) and supported by a mix of Republican and Democratic cosponsors, seeks to reduce this limit to seven days. This adjustment is seen as a method to broaden participation among the state’s many nonprofits, especially those that do not have the same visibility as larger organizations like Make-A-Wish or Big Brothers Big Sisters.
New Hampshire’s charitable gaming law dates back to 1977 when it was first enacted to enable casinos to contribute to community welfare. The law stipulates that every casino must partner with two qualified nonprofits each day, with these charities sharing 35% of the daily gross gaming revenue (GGR). This requirement has fostered a unique relationship between casinos and charitable organizations, ensuring that gaming activities benefit the local community. However, many of the state’s 14 charitable casinos often favor the same established beneficiaries month after month, leaving smaller nonprofits struggling to gain access to these vital funds.
Supporters of SB542 argue that by reducing the number of days a charity can be associated with a casino, the bill would open the door for over 400 additional nonprofits to participate in the gaming market, creating a more diverse and equitable distribution of funds. As casinos in New Hampshire have been able to direct substantial amounts of revenue—over $60 million in 2025—to charitable causes through games of chance and historical horse racing machines (HHR), the potential for increased funding for smaller organizations is significant.
In terms of context, it’s important to understand how New Hampshire’s charitable gaming revenue is generated. The state has recently expanded its gaming options with the introduction of video lottery terminals (VLTs), which began operating just last fall. These machines are designed to provide a faster gaming experience, completing spins approximately five seconds quicker than HHR machines. This increase in efficiency has the potential to enhance revenue generation not only for the casinos but also for the charities they support.
The 2025 overhaul of the charitable gaming law was a pivotal moment for the state, as it adjusted the financial framework governing casino operations. In exchange for the privilege of offering VLTs, casinos agreed to a higher gross gaming tax rate, which increased from 25% to 31%. Consequently, casinos now retain 31.25% of their gross gaming revenue, a reduction from the previous 40%. Despite this adjustment, charities have retained their 35% allocation from gaming revenues, maintaining their critical financial support for various causes throughout New Hampshire.
The New Hampshire Gaming Commission plays a significant role in overseeing these operations, collecting 2.5% of the gross gaming revenue for regulatory costs. The remaining 0.25% goes to the Governor’s Commission on Addiction, Treatment, and Prevention, underscoring the state’s commitment to addressing potential gambling-related issues. Additionally, the state’s only online sportsbook, DraftKings, shares 51% of its gross revenue with the state, with a large portion dedicated to funding public education grants for school districts.
As the bill progresses to the House of Representatives, it is under review by the Ways and Means Committee. The discussions surrounding SB542 highlight the delicate balance between supporting charitable organizations while ensuring that the casinos maintain a sustainable business model. If passed, this legislation could not only transform the landscape of charitable gaming in New Hampshire but also serve as a model for other states grappling with similar issues.
The implications of this bill extend beyond mere numbers; they reflect a broader trend of how states are reevaluating their gaming regulations to better serve their communities. As more states look to expand their gaming markets, the lessons learned from New Hampshire’s approach to charitable gaming could offer valuable insights. By prioritizing smaller nonprofits and creating a more inclusive environment for charitable participation, New Hampshire may set a precedent for how gaming revenues can be leveraged for community benefit.
In conclusion, the proposed amendments to New Hampshire’s charitable gaming law signify a thoughtful approach towards balancing the interests of casinos and charitable organizations. By reducing the maximum number of days a charity can benefit from casino revenues, the state aims to foster a more equitable distribution of funds among nonprofits, ensuring that all organizations have a fair chance to participate in the gaming market. As the legislative process unfolds, stakeholders from both the gaming and nonprofit sectors will be watching closely, hoping for a resolution that enhances the benefits of charitable gaming for all involved. For those interested in keeping up with latest updates on this topic and the evolving landscape of gambling in New Hampshire, it’s an exciting time to stay engaged.