Nonprofits urge committee to reject caps, revenue shift in gaming bills; commission chair calls for more study

Hundreds of nonprofit leaders and community organizations told the House Ways and Means Committee on Tuesday they oppose bills that would cap charitable-gaming payouts or divert historic horse racing revenue to the state’s Education Trust Fund.

"These funds are critical to the Webster House. They help us provide the highest level of care for our residents," Michelle O’Malley, chief executive officer of Webster House Children’s Home, said during public testimony opposing HB 531, a bill that would cap annual charitable-gaming distributions to any single charity.

Former state representative and former chair of the charitable gaming commission Pat Abrami, who led a year-and-a-half commission that produced 25 recommendations on gaming, told the panel the commission recommended further study of how charities are selected and how revenue is distributed. "The commission agreed that these issues needed further study," Abrami said, and he urged lawmakers to allow the newly created commission to complete that work before changing the law.

Why it matters: opponents said charitable-gaming proceeds are a large and stable revenue stream for a wide range of nonprofits—homeless shelters, developmental-disability providers, youth sports groups, the arts and volunteer-run community services—and that capping or redirecting the money would effectively tax the nonprofit sector and reduce services relied on by people across the state.

What witnesses said: United Way of Greater Nashua President Mike Appleberg called HB 588, which would redirect a portion of historic-horse-racing revenue into the Education Trust Fund, "in effect a tax on the nonprofit sector," saying testimony and fiscal estimates show the bills would move roughly $12.5 million to $18.6 million from charities to the state. Several organizations described programs that depend on the revenue—Granite State Independent Living said proceeds fund transportation and home modifications for people with disabilities; the Nashua Soup Kitchen and Shelter said charitable gaming made up nearly $100,000 of last year’s revenue and was essential to providing beds and meals.

Pat Abrami and others emphasized the program’s history and structure. Abrami said when historic horse racing (HHR) was added beginning in May 2022 the intent included expanding the number of charities that could benefit, and he warned that several proposals before the committee would reduce the number of participating charities and cut longstanding revenue streams. He said the commission’s survey showed roughly 800 charities currently benefit from charitable gaming and argued that changing the rules now would disadvantage and harm many organizations that planned programming based on the existing model.

Supporters of change argued the rapid growth of gaming revenues has created unequal outcomes among charities and that a temporary cap could "buy time" while lawmakers and a joint commission develop a fairer allocation system. Representative Ames, who introduced HB 531, said the limit was meant as a pause for study and not a judgment that particular charities are undeserving.

Committee questions and concerns focused on the mechanics and consequences of proposed changes: whether separate statutory treatment for table games and HHR could produce unintended effects; how any redirected funds would be administered; whether a cap would be applied to combined gaming receipts or to each statutory category; and the effect on charities that depend on a single major allocation each year.

What was not decided: the session recorded lengthy testimony but no committee votes on HB 531, HB 588, or HB 591. Several witnesses urged the committee to allow the new charitable gaming commission or a legislative work group to finish study and recommendations before statutory changes are adopted.

Ending note: Testimony spanned homelessness providers, disability service agencies, youth sports and arts groups, and small grassroots charities; many said they rely on charitable-gaming proceeds to close budget gaps and provide services otherwise unavailable in the state budget.