This bill introduces Chapter 287-J, which authorizes and regulates video lottery terminals (VLTs) at charity gaming facilities while repealing the existing authorization for historic horse racing (HHR) effective January 1, 2028. It defines VLTs and sets forth requirements for eligible game operator employers, including the necessity of obtaining a license and ensuring that terminals are operated within the facility's enclosure. The bill mandates that each licensee submit a responsible gaming plan to the lottery commission and ensures that VLTs are tested for integrity by an independent laboratory. Additionally, it imposes civil penalties for unlicensed operation of VLTs, allowing for the forfeiture and seizure of such terminals by the commission, attorney general, and local police. The bill also clarifies that the lottery commission will not authorize new electronic gaming devices for horse racing unless specifically enacted by the general court, effectively removing references to HHR from various sections of the law.

The bill establishes a new tax structure for VLT revenues, requiring licensees to allocate 30% of total revenue to charitable organizations, problem gaming services, and the Group II retirement system, with the remainder going to the Lottery Commission. It increases the daily revenue per terminal from $230 to $300 and adjusts the revenue distribution percentages, decreasing the game operator's share from 75% to 70%, while increasing the Lottery Commission's share from 16.25% to 18% and charities' share from 8.75% to 10.5%. New allocations for problem gaming services and the New Hampshire Retirement System are also introduced. The fiscal impact is projected to significantly increase state revenue, with estimates indicating a potential increase of over $33 million by FY 2027. To implement these changes, the Lottery Commission anticipates hiring additional staff, resulting in increased expenditures, while modifications to existing criminal penalties may affect the judicial and correctional systems.

Statutes affected:
Introduced: 284:6-a, 284:31, 284:39