Two connected items came before the committee: HP 1409 would amend VLT revenue distribution to deposit 100% of net state VLT receipts into the Education Trust Fund, which the sponsor said conforms statute with the constitutional language that directs lottery net revenue to education; the sponsor cited an estimated transfer of roughly $93.9 million from the General Fund to the Education Trust Fund in FY27 under the change.

Separately, Rep. Dale Swanson introduced HB 1559 to increase the portion of gross VLT revenue dedicated to the Addiction Treatment and Prevention Fund from 0.25% to 1%. Swanson framed the increase as a modest shift to aid problem‑gaming services and addiction treatment providers. He and other witnesses emphasized that gambling can produce addiction harms and that treatment and prevention services need dependable funding.

Lottery and charity‑gaming testimony: Valerie King of the New Hampshire Lottery explained that operators are required to adopt responsible‑gaming plans and that the Lottery does not fund operators' advertising. Charity‑gaming representatives urged caution about changing allocations so soon after VLT implementation, saying the industry is still ramping up and that statutory formulas interact across distributions; one operator group pointed out that increasing the allocation to the addiction fund would require adjusting other distributions.

Committee questions and next steps: Members pressed on constitutional questions (HP 1409), the predictability of education funding, and whether raising the addiction allocation now is premature because VLT revenue streams are still ramping. DRA had not provided a fiscal note for some allocation proposals during the hearing; members asked DRA and Lottery for further analysis on revenue magnitudes and downstream effects before amendments are considered.