NH’s Business:

SHOWERS WEDNESDAY NIGHT. WELCOME TO NEW HAMPSHIRE’S BUSINESS. I’M FRED KOCHER AGAIN. AN ECONOMY HAS QUICKLY GROWN IN NEW HAMPSHIRE SINCE 1963, WHEN NEW HAMPSHIRE’S CITIES AND TOWNS VOTED TO START A LOTTERY, WHICH BENEFITS TO NEW HAMPSHIRE SCHOOLS. THE FIRST IN THE NATION. NOW LOTTERY GAMES IN STORE, GAMES AND SPORTS BETTING IS BOOMING IN THE STATE. TAKE A LOOK AT THIS CHART JUST RECEIVED FROM THE NATIONAL LOTTERY COMMISSION. A TOTAL GROSS REVENUE. 604,373,935. THAT’S LAST YEAR 381.4 MILLION IN PRIZES, 208.9 MILLION FOR EDUCATION AND 15.1 MILLION IN EXPENSES. HERE’S THE NEW HAMPSHIRE MAP. COMMUNITIES WITH CASINOS AND GAMING IN HAMPTON, SEABROOK, SALEM, NASHUA, MANCHESTER, DOVER, ROCHESTER, BELMONT, CONWAY, KEENE AND LEBANON, A LOT OF THEM ON THE BORDER. WITH ME IN THE STUDIO IS THE EXECUTIVE DIRECTOR OF NEW HAMPSHIRE’S LOTTERY AND GAMING COMMISSION, CHARLIE MCINTYRE, WHO HAS DIRECTED THE COMMISSION SINCE 2010. WELCOME, FRED. THANKS FOR HAVING ME. NICE TO HAVE YOU HERE. MANY IN NEW HAMPSHIRE REMEMBER DOG AND HORSE RACING. YES, BUT NOW WE HAVE CASINOS. WE HAVE SPORTS BETTING. TWO ELEMENTS OF YOUR GAMING THAT ARE GROWING LIKE TOPSY. YES. THEY ARE. WHAT’S DRIVING THAT? AND IS THERE A CAP OR A LIMIT TO HOW MUCH THEY COULD GROW? WELL, CERTAINLY THE THE DRIVER IS EVERY TIME THE LEGISLATURE ALLOWS A CERTAIN TERM OR TYPE OF GAMBLING, THAT TYPE OF GAMBLING TENDS TO BE ONCE IT’S INSTILLED IN THE STATE, IT GROWS. AND SO STATE HOUSE APPROVED AND THE GOVERNOR SIGNED SPORTS BETTING. AND SO IT WENT FROM ILLEGAL MARKETS TO LEGAL MARKETS. YEAH. AND SO THERE’S ALWAYS BEEN SPORTS BETTING IN THE STATE. IT WAS JUST ILLEGAL. AND SO ONCE IT BECAME LEGAL IT GREW TO THE POINT WHERE IT IS NOW. AND IT’S A VERY LARGE SOURCE OF REVENUE FOR THE STATE, 39 MILLION A YEAR IN PROFITABILITY. IS THERE A LIMIT ON GROWTH? OF COURSE. YEAH. AND NOW WHAT YOU’RE SEEING IS SLIGHT GROWTH. YOU’RE SEEING THE NORMAL KIND OF BUSINESS GROWTH. THE MARKET CONDITIONS AFFECTING IT’S NOT THE SAME. IT WENT FROM 0 TO 30 MILLION IN A COUPLE OF YEARS. NOW YOU’RE SEEING SLIGHT LEVELS OF NORMAL GROWTH OF A BUSINESS. MOST OF THE CASINOS ARE OWNED OUT OF STATE. AS YOU KNOW, CHURCHILL DOWNS JUST TOOK A MAJORITY STAKE IN THE SALEM CASINO, FOR INSTANCE. SO YOU ARE OVERSEE AND YOU REGULATE GAMING, INCLUDING THE CASINOS. CORRECT. WHAT’S THE NUMBER ONE CHALLENGE? TO KEEP IT CLEAN AND LEGAL? THE NUMBER ONE CHALLENGE IS WHERE AND THE DIFFICULT PART, BECAUSE THE TECHNOLOGY IS EASY, RIGHT. SO THE MACHINE THE THE MANAGEMENT OF THE MACHINES IS ACTUALLY QUITE EASY THOUGH YOU CAN TRACK THOSE ALMOST IN REAL TIME. KNOW IF THERE’S BEEN AN ISSUE. IT’S WHERE PEOPLE IN MONEY ARE IN THE SAME PLACE TOGETHER AND WHERE INDIVIDUAL HAS OPPORTUNITY TO COMMIT AN OFFENSE OR A VIOLATION. THOSE ARE ALWAYS THE DIFFICULT PARTS, BECAUSE AND THAT’S TRUE OF ANY PART OF OUR BUSINESS, IS WHERE PEOPLE AND MONEY ARE IN THE SAME PLACE TOGETHER. AND SO REGULATING THAT’S DIFFICULT. AND CERTAINLY THE OPERATORS, THE CASINO OPERATORS AND THE STATE HAVE THE SAME OBJECTIVE IN THAT REGARD BECAUSE IT’S BOTH OF OUR BUNNIES AND THAT. SO THAT’S THE THAT’S THE SINGLE CHALLENGE. WHAT’S THE NEWEST DEVELOPMENT? WELL, THE NEWEST DEVELOPMENT IS THE STATE HOUSE APPROVED VIDEO LOTTERY TERMINALS. PREVIOUSLY WE HAD A MACHINE CALLED A HISTORIC HORSE RACING, RIGHT VLT THEY LOOK SIMILAR, BUT THEY BEHAVE DIFFERENTLY. IT’S FAR MORE POPULAR TO THE PLAYERS. AND ALL OF THE CASINOS ARE NOW CONVERTING, OR MOST OF THEM ARE CONVERTING FROM HISTORIC HORSE RACING TO VLTS. IT’S IT’S FUNDING TO NONPROFIT. IT’S GOING TO GO UP. IT’S GOING TO INCREASE. THE QUESTION. I THINK OUR LAST CHECK, I THINK OUR CURRENT RUN RATE IS AROUND $6 MILLION A MONTH. THAT GOES TO CHARITY. SO IN THE AGGREGATE FOR YEARS, 70 SOME ODD MILLION DOLLARS, WHICH IS REAL MONEY. WHAT’S THE OVERALL OUTLOOK FOR GAMING IN THIS STATE GOING THE NEXT FEW YEARS? IT WILL CONTINUE TO GROW. ALL OF THE ROOMS WILL BUILD OUT. THERE’LL BE NORMAL MARKET CONDITIONS. THEY’LL ALL WANT TO COMPETE WITH EACH OTHER, HAVE THE BEST EXPERIENCE BECAUSE REALLY, CUSTOMERS LIKE THE EXPERIENCE. THEY LIKE HAVING A NICE CARPET. THEY LIKE HAVING A NICE TABLE, NICE CHAIRS, THE ABILITY TO HAVE FOOD AND BEVERAGES THAT’S ACTUALLY TASTY. AND YOU KNOW, EXACTLY, EXACTLY. HERE’S A STATEMENT THAT YOU’LL BE FAMILIAR WITH. SPECTRUM BELIEVES IT IS NOW INCUMBENT UPON THE STATE OF NEW HAMPSHIRE TO THOROUGHLY ASSESS THE FUNDING, SCOPE, AND EFFICACY OF PROBLEM GAMBLING. RESPONSIBLE GAMING PROGRAMS FROM A 360 DEGREE PERSPECTIVE. ARE WE ARE WE HANDLING PROBLEM GAMING ADEQUATELY? CERTAINLY, THE NEWEST TRY IS TO CONVERT PROBLEM GAMBLING INTO THE GOVERNOR’S COMMISSION ON ADDICTIONS TREATMENT AND SENDING THE FUNDING THERE AND MAKING IT A REALLY HOLISTIC APPROACH TO A PERSON WITH ISSUES THAT MAY HAVE ISSUES WITH ALCOHOL AND GAMBLING AS WELL. CHARLIE MCINTYRE, EXECUTIVE DIRECTOR OF THE NEW HAMPSHIRE LOTTERY AND GAMING COMMISSION. THANK YOU. NICE TO HAVE YOU HERE. GREAT BEING HERE. THANK YOU. AND IF YOU MISSED PART OF THIS BRIEFING ON NEW HAMPSHIRE’S LOTTERY AND GAMIN