On January 14, 2024, the New Hampshire Legislature introduced Senate Bill 60-FN, an act aimed at regulating advanced deposit account wagering on horse racing. This legislation seeks to formalize and tax a practice that has been occurring without state oversight, thereby establishing a framework for revenue generation while ensuring consumer protection.

The bill proposes that licensed advanced deposit wagering operators will remit 1.25 percent of their total wagers, known as "handle," to the state. Based on estimates from the Lottery Commission, this could generate approximately $212,500 annually for the state’s lottery revenue, which is subsequently allocated to the Education Trust Fund. The projected revenue for the fiscal year 2026 is estimated at $106,250, reflecting a half-year impact due to the bill's effective date of July 1, 2025, and the licensing process extending until January 1, 2026.

Key provisions of the bill include the establishment of a revenue-sharing agreement and the continuation of operations for unlicensed operators during the transition period. This approach aims to ensure a smooth integration of existing practices into a regulated framework, addressing concerns about oversight and consumer protection.

Debate surrounding the bill has focused on its potential economic benefits versus the implications of increased regulation. Proponents argue that the bill will enhance state revenue and provide a safer betting environment for residents. Critics, however, express concerns about the impact of increased regulation on small operators and the potential for reduced competition.

The implications of Senate Bill 60-FN extend beyond immediate financial benefits. By formalizing advanced deposit wagering, the state positions itself to better monitor gambling activities, potentially reducing illegal operations and ensuring that revenues are directed towards educational funding. As discussions continue, stakeholders from various sectors, including the Lottery Commission and local betting operators, are expected to weigh in on the bill's provisions and its anticipated effects on the state's gambling landscape.

In summary, Senate Bill 60-FN represents a significant step towards regulating advanced deposit wagering in New Hampshire, with the potential for substantial economic impact and ongoing discussions about its broader implications for the state's gambling framework.