New Hampshire's gaming industry is on the brink of a significant transformation as lawmakers deliberate the legalization of slot machines in the state's casinos. Currently, gaming establishments operate historical horse racing (HHR) machines, which, while resembling slot machines, determine outcomes based on past horse race results rather than random number generators. This distinction not only affects gameplay but also operational costs and revenue distribution.
Senate Bill 83, introduced by Senator Tim Lang, proposes allowing casinos with HHR licenses to replace these machines with traditional slot machines. This move aims to reduce operational expenses and boost revenue for operators, charities, and the state. A recent gaming report highlighted that running HHR machines in New Hampshire incurs costs 6% to 18% higher than those associated with slot machines. The bill suggests maintaining the current speed of play to address concerns about problem gambling associated with faster-paced slot machines.
Under existing regulations, the state has capped the number of casinos with HHR licenses at 18, with a moratorium lifting in 2031.
Presently, there are 10 active casinos offering HHR, with four additional applications pending approval by the lottery commission. If the bill passes, only these licensed casinos will be permitted to introduce slot machines, granting them a seven-year advantage over potential new entrants.
The potential financial impact is substantial. By the end of fiscal year 2024, New Hampshire had nearly 2,000 active HHR terminals. The Lottery Commission anticipates this number to double to approximately 4,300 by the end of FY 2025, driven by new and expanding facilities. With the introduction of slot machines, the state estimates an additional $63.8 million in annual revenue.
However, the proposal has sparked debate. Senator Keith Murphy expressed concerns about creating an uneven playing field, emphasizing the need for an open market accessible to all qualified applicants. Critics also worry that the faster pace of slot machines could exacerbate problem gambling. To mitigate this, the bill includes provisions for a statewide self-exclusion policy, allowing individuals to ban themselves from all casinos in the state, enhancing existing measures that apply only to individual establishments.
As New Hampshire's gaming industry approaches a billion-dollar market, the introduction of slot machines represents a pivotal moment. Lawmakers must balance the potential economic benefits with the need for responsible gaming practices and equitable market access.
Historical Horse Racing (HHR) Machines are electronic gambling machines that allow players to bet on previously recorded horse races. They look and function similarly to traditional slot machines, but instead of using a random number generator (RNG) to determine outcomes (as regular slot machines do), they use archived horse race data.
How HHR Machines Work:
- Horse Race Database: The machines pull data from a vast database of past horse races.
- Anonymized Races: Players do not know which race they are betting on; only general information like jockey stats or track conditions may be available.
- Betting Options: Players can make choices like in a real horse race, selecting horses based on handicaps, or they can use an "auto-pick" feature.
- Race Outcome: The machine calculates payouts based on the actual results of the historical race, rather than random chance.
HHR machines are popular in states where traditional slot machines are restricted but horse race betting is legal. Some casinos use them to bypass gambling laws while still offering an experience similar to slots.
