New Hampshire gaming halls with historic horse racing licenses could soon swap their machines for slot machines, securing a seven-year head start over competitors in the state’s expanding casino market.

Senate Bill 83 seeks to legalize slot machines, which at least from a player’s perspective aren’t all that different from historic horse racing machines. The real distinction comes down to how they function behind the scenes and what it costs to operate them.

Sen. Tim Lang, the bill’s prime sponsor, said it follows the recommendations laid out by last year’s study committee on charitable gaming. He was part of that group himself.

“We reduce the operational costs while at the same time we’ll be increasing revenue both for the operator, charity and the state,” said Lang, a Republican representing portions of the Lakes Region, at Wednesday’s hearing in the State House.

A recent gaming report found that running historic horse racing machines (HHR) in New Hampshire costs 6% to 18% more than operating slot machines.

Currently, lawmakers have capped the number of casinos with HHR licenses at 18, with the moratorium set to lift in 2031. This means that should New Hampshire legalize slot machines, only those holding an HHR license will be able to add slots, while others will have to wait until the moratorium ends.

There are currently 10 active casinos offering HHR, with four additional applications pending approval by the lottery commission.

By the end of fiscal year 2024, New Hampshire had almost 2,000 active HHR terminals. The Lottery Commission expects that number to nearly double to around 4,300 by the end of FY 2025, driven by new and expanding facilities.

Once those new slots are up and running, the state estimates an extra $63.8 million in annual revenue.

If the bill passes, only casinos with an HHR license will be allowed to introduce slot machines. HHR machines have proven to be far more profitable for casino operators than traditional table games like poker or blackjack. In the fiscal year 2024, casinos made $128.9 million from HHR machines, compared to $40.4 million from other games of chance, like poker, blackjack and others.

Sen. Keith Murphy, a Manchester Republican, said that he is not here to make the current “license holders extremely wealthy people.”

“I want to be clear that this bill is intended to open a market for as many applicants as they wish to apply or otherwise qualified,” said Murphy.

Slot machines rely on simpler, less costly technology and algorithms as players compete against machines that generate random numbers. HHR machines are more complex. The machine has to tap into a vast database of past horse races, requiring advanced programming.

With slot machines running at a quicker pace than HHR machines, critics fear it may encourage problem gambling.

Wrapped into SB83 is a provision to implement a statewide self-exclusion policy for gambling. 

Currently, if someone wants to avoid gambling, they can request to be placed on an exclusion list at a casino. However, this only applies to that particular casino, allowing individuals to still visit other casinos in the same city or state and continue gambling.

Other states have adopted a more comprehensive approach, implementing a statewide self-exclusion policy. This means that once a person is placed on the exclusion list at one casino, they are automatically excluded from all casinos across the state, creating a more effective safeguard for those seeking to avoid gambling altogether.

Sruthi Gopalakrishnan can be reached at sgopalakrishnan@cmonitor.com.