Vote Smart's Synopsis:

Vote to adopt an amendment to HB 593 that authorizes gambling and gaming in New Hampshire, and reduces the business enterprise tax rate and the business profits tax rate.

Highlights:

• Establishes 3 different categories of gaming licenses and defines them as (Sec. 2):
• A category 1 gaming licensee  can operate a maximum of 150 table games and 5,000 video lottery machines;
• A category 2 gaming licensee can operate a maximum of 50 table games and 2,000 video lottery machines or;
• A category 3 gaming license is the same as a category 2 except the gaming location must be in a municipality in a community that qualifies under the federal “New Markets Tax Credit Program” in the internal revenue code.

• Authorizes the establishment of no more than 4 gaming locations across New Hampshire, including 2 category 1 gaming licenses, 1 category 2 gaming license, and 1 category 3 gaming license (Sec. 2).

• Requires all applicants submitting an application for a gaming license to pay a non-refundable application fee of $500,000 to the Lottery Commission (Sec.2).

• Requires all applicants submitting an application for a gaming license to pay $100,000 to the Attorney General to cover the costs associated with a background investigation (Sec. 2).

• Requires all “technology provider” applicants to pay an application fee of $100,000 to the Lottery Commission (Sec. 2).

• “Defines “technology provider” as any person or entity which supplies video lottery machines or table games for sale or lease to gaming licensees (Sec. 2).

• Requires all technology provider applicants to pay an application fee of $25,000 to the Attorney General, which will be used to cover the costs associated with a background investigation (Sec. 2).

• Requires all approved gaming licensees to pay the following license fees to the Lottery Commission (Sec. 2):
• $50 million initially for a Category 1 gaming license;
• $20 million initially for a Category 2 gaming license; or    
• $20 million initially for a Category 3 gaming license.

• Requires 40 percent of the net machine income from the video lottery machines to be appropriated as follows (Sec. 2):
• 35 percent is appropriated  to the state for costs of regulation and enforcement of this chapter with any remaining funds being allocated to the education trust fund to be used first to reduce the business enterprise tax from 0.75% to a minimum of 0.25%; 
• 3 percent is appropriated to the municipality where the video lottery machines are operated;
• 1 percent is appropriated to the municipalities that border the municipality where the video lottery machines are operated; and
• 1 percent is appropriated to the Department of Health and Human Services to treat gambling problems.

• Authorizes the Lottery Commissioner, after July 1, 2013, to annually establish a business profits tax rate upon the taxable business profits of every business organization that will not exceed 8.5% whereas in existing law the tax is set at 8.5% (Sec. 15).

Full Bill Text