Lottery director raises revenue guidance; conference committee OKs staff for video-lottery rollout

The Committee of Conference on HB 1 and HB 2 heard updated revenue guidance from Charlie McIntyre, director of the New Hampshire Lottery, who said the agency has raised its near‑term revenue outlook and plans additional staffing tied to the possible introduction of video lottery terminals (VLTs).

McIntyre told the committee, “We anticipate $200,000,000 of return to, each year of the biennium,” and cited stronger scratch‑ticket sales and sports betting performance as reasons for the revised guidance. He said the lottery has raised its current fiscal‑year outlook and the outlook for the next two years based on better than expected sales across products.

Why it matters: The lottery’s revenue forecast flows into the budget conference’s discussions about how much the state can appropriate for general and education purposes. The committee also addressed operational changes that would be necessary if VLTs are added to the market, including positions at the lottery commission and a dedicated funding stream for responsible‑gaming programs.

Most important facts

- Revenue guidance: McIntyre described improved scratch‑ticket sales, stronger sports‑betting receipts than anticipated, and other product gains as reasons for raising guidance. He told the committee the agency now projects $200 million a year in returns under the assumptions presented to the committee.

- VLTs and machine counts: McIntyre said New Hampshire’s marketplace has capacity for thousands more machines and that the state had not reached saturation; he estimated a potential statewide maximum in the study he cited of roughly 6,800 machines. He also explained operators have financial incentives to convert historical horse racing (HHR) machines to VLTs because traditional VLTs “perform better” and have more manufacturers and competitive offerings.

- Per‑machine revenue assumptions: The committee discussed a range of per‑day revenue assumptions McIntyre provided for HHR and slot machines; in committee discussion staff cited adjusted per‑day averages moved from earlier estimates (for example, HHR daily revenue assumptions were adjusted from $2.30 to $2.45 in a modeling step described to the committee; slot assumptions were adjusted from $3.30 to $3.45 in the same discussion).

- Tax rate and responsible gaming: Committee members described differences between House and Senate proposals on the tax split and uses. The Senate’s draft budget set a 31.25% gross‑receipts tax rate on the relevant machines and explicitly reserved a quarter‑point of that rate for responsible‑gaming activity; the remainder would be split between charities and the state under the Senate plan discussed in committee.

- Administrative staffing: The committee agreed to the Senate position to add three positions in the Lottery Commission for VLT administration. Committee minutes show the panel voted to “exceed” (adopt) the Senate language adding those positions; committee staff said lottery operational costs would be funded from lottery revenue (other funds) and not by new general‑fund appropriations.

Selected quotes

- “I have the privilege of being the director of the New Hampshire Lottery,” Charlie McIntyre said when he began his presentation to the committee.

- On the revenue outlook, McIntyre said, “We anticipate $200,000,000 of return to, each year of the biennium.”

- On why operators might convert HHR machines to VLTs, McIntyre said, “For those reasons, yes, it would benefit the operators. And also they tend to be sort of, keep up with the Joneses folks. So if an operator on 1 facility converts entirely, you can be sure the next closest will as well because they have to keep up.”

What the committee did next

The committee voted to accept the Senate change adding three lottery positions to administer VLTs and discussed using a quarter‑point of the proposed VLT tax rate for responsible‑gaming activities. Committee staff said the lottery is a self‑funded agency and that operational costs would be covered from lottery receipts rather than general fund dollars.

Looking ahead

Committee members asked the lottery to supply written modeling and per‑machine assumptions so lawmakers can test revenue sensitivity to machine counts, operator conversion timing, and per‑day yield. Staff warned revenue estimates can change with national or regional market shocks such as fuel prices or shifts in cross‑border demand.