Odds On Racing - Harness Racing

Approval of Slots Still a Gamble
Legislation to benefit Rockingham Park

March 29, 2010

A push to allow slot machines at six venues, including Rockingham Park in Salem, cleared a major hurdle last week, but still faces an uphill battle.

Senate Bill 489, sponsored by Lou D'Allesandro, D-Manchester, was approved 14-10 by the Senate on Wednesday. It has been passed on to the House, which has been notoriously tough on gambling legislation.

State representatives from Southern New Hampshire said although the House may be taking a closer look at slots, there are still many members who don't want to consider expanded gambling.

"There will be more House reps convinced this year that we are desperate and we don't want to make more cuts, but I don't think it will be enough," Rep. Bob Elliott R-Salem said. "And I'm very disappointed it won't."

Rep. Roger Wells, R-Hampstead, said he believes some members are warming up to gambling as a way to avoid tax increases or budget cuts. But there are many who will never change their minds on gambling, he said.

"My position is: If you are against expanded gambling, then that means you are OK with cuts to the budget," Wells said.

The House begins discussion on the bill with a hearing Tuesday.

Beyond the House lies an even bigger obstacle — a skeptical governor. Gov. John Lynch has been hesitant to take a position on expanded gambling in the Granite State, but has voiced strong opposition to this bill.

"One of his concerns from the beginning has been proliferation," said Colin Manning, Lynch's spokesman. "Last year, there was legislation for five locations, and the bill this year expands it to six."

The bill calls for slot machines to be allowed at Rockingham Park, Seabrook Greyhound Track, Green Meadow Golf Club in Hudson, The Lodge at Belmont, and two unidentified locations in the North Country. In all, it would allow for 17,000 slot terminals.

Lynch also doesn't like the lack of regulatory oversight in the bill, and wants to wait until a gaming study commission he created last year completes its work, Manning said. It is scheduled to issue a final report in May.

"He thinks everyone should have a look at that report," Manning said. "They (the commission members) have put in a lot of work over the last year."

But for Rockingham Park, the clock is ticking, according to President and General Manager Ed Callahan.

Revenue at the park has been steadily dwindling since the early 1990s, and its aging stables are on the verge of collapse. Earlier this month, live racing was canceled for 2010.

In its heyday, the park employed more than 600 people, and it has brought in more than $330 million in tax and regulatory fees for state coffers since 1933.

Last year, the park only generated $2.7 million for the state, and it now employs only about 220, Callahan said.

Callahan said the state doesn't owe the park anything; he just wants a chance to change its product with the times.

"It's like not allowing a computer company to use new technology," he said.

Supporters of the gambling legislation paint D'Allesandro's legislation as a bill of economic recovery — for the state, the region and The Rock.

If slots are allowed in the state, Millennium Gaming promises a $450 million renovation of the park, and a return to thoroughbred horse racing.

The bill would create nearly 3,600 construction jobs in New Hampshire, including almost 2,000 at Rockingham Park, according to the Las Vegas-based gaming company's projections. More than 1,000 permanent jobs would be created, Millennium spokesman Rich Killion said.

"There's a need for the revenue, evident need for the jobs now," Killion said.

The state would reap the benefits of a 35 percent tax on gambling revenue and collect $220 million in initial licensing fees. A recent amendment to the bill calls for the first $50 million to go toward the state Department of Health and Human Services.

But Jim Rubens, director of the Granite State Coalition Against Expanded Gambling, said it will take time for those licensing fees to come in, and the money won't resolve current budget deficits.

He also criticized the bill for allowing too many machines and too many locations.

"They've gone way over the top," Rubens said. "It's insane."

He added that discussions in the House would be a challenge.

"Its going to be a tough fight in the House to keep representatives from drinking the free money Kool-Aid," Rubens said.