Gambling has been a popular form of entertainment throughout history, and with the rise of technology, it has become more accessible than ever. In recent years, there has been a significant growth in online gambling, with many states legalizing and regulating this industry. One such state is New Hampshire, which has seen a steady increase in its online gambling revenue.
In this comprehensive guide, we will delve into the world of online gambling in New Hampshire, exploring its regulations, revenue, and future prospects. We will also look at the different types of online gambling available in the state, as well as the current market situation and projected growth. So let’s dive in and get a better understanding of New Hampshire’s online gambling scene.
History of Online Gambling in New Hampshire
To understand the current state of online gambling in New Hampshire, we need to first look at its history. The Granite State has had a long and complicated relationship with gambling, with strict laws prohibiting most forms of it. However, in recent years, the state has loosened its stance on gambling, leading to an increase in revenue.
Early Regulations and Restrictions
New Hampshire’s first state lottery was established in 1963, making it the first state to offer a legal lottery since the 1890s. However, the state lottery faced numerous challenges, including lawsuits and voter disapproval. As a result, the lottery was suspended in 1974 but was reinstated in 1987 after a successful vote by the residents.
In the early 1990s, the state also allowed for charitable gambling, such as bingo and raffles, to be conducted by licensed organizations. However, all other forms of gambling remained illegal, including casinos and sports betting. The state even went as far as passing a law in 2006 that specifically prohibited online gambling.
Changes in Legislation
In 2017, New Hampshire made a significant change in its stance on gambling with the passage of HB 562. This bill was aimed at legalizing online lottery sales, making New Hampshire the fifth state to do so. The bill also created a commission to study the potential effects of legalizing online sports betting in the state.
The following year, the United States Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA), which had prohibited states from offering sports betting. This ruling opened up the possibility for states to legalize and regulate sports betting within their borders. In July 2019, New Hampshire passed HB 480, legalizing both land-based and online sports betting in the state.
Recent Developments
In August 2020, New Hampshire saw another significant change in its gambling laws with the introduction of HB 1633. This bill legalized online casino gambling in the state, making it the second state after Pennsylvania to have an online casino market without any land-based casinos.
Under this new law, the state lottery was given the authority to oversee and regulate online casino gambling, with licenses being issued to qualified operators. This move was met with some pushback, with opponents arguing that online gambling would lead to increased problem gambling and have a negative impact on the community.
Types of Online Gambling in New Hampshire
New Hampshire offers a variety of online gambling options, ranging from traditional games like lottery and bingo to newer additions like sports betting and online casinos. Let’s take a closer look at each type of online gambling available in the state.
Lottery
The New Hampshire Lottery has been in operation since 1964 and offers a variety of games, including scratch cards, draw games, and keno. In 2017, the state legalized online lottery sales, allowing players to purchase tickets for Powerball, Mega Millions, and other games through the official lottery website or mobile app.
The revenue from the lottery goes towards funding education, with over $2.3 billion contributed to the state’s education system since its inception. In 2020, the New Hampshire Lottery set a new record for sales, generating $385 million in revenue.
Charitable Gaming
Charitable gambling, such as bingo and raffles, has been legal in New Hampshire since the 1990s. These games are regulated by the Racing and Charitable Gaming Commission and are offered by licensed organizations, with proceeds going towards charitable causes.
In recent years, the state has also allowed for electronic versions of these games, such as electronic pull-tab machines, to be included in charitable gaming events. This move has helped increase revenue for both the charities and the state, with over $4.5 million generated in 2019.
Sports Betting
Following the repeal of PASPA in 2018, New Hampshire legalized sports betting through HB 480 in 2019. The state offers both land-based and online sports betting, with the latter being available through the official state lottery website.
Currently, only mobile sports betting is allowed, with no retail sportsbooks in operation. However, there have been talks of establishing physical sportsbooks in the future. In the first six months of operation, New Hampshire’s sports betting market generated over $12 million in revenue.
Online Casinos
Online casino gambling was legalized in New Hampshire in August 2020, making it the second state after Pennsylvania to have an online casino market without any land-based casinos. The state lottery is responsible for regulating and overseeing this market, with three operators currently offering online casino games.
The games available include slots, table games, and poker, with more titles expected to be added in the future. Despite some opposition, online casinos in New Hampshire have already generated over $6 million in revenue in its first few months of operation.
Market Situation and Projected Growth
New Hampshire’s online gambling market is still in its early stages, but it has already shown significant growth potential. With the legalization of online sports betting and casinos, the state has opened up more opportunities for revenue.
According to a report by the American Gaming Association, New Hampshire’s total gaming revenue in 2020 was $226 million, with $48 million coming from the lottery and $12 million from sports betting. However, with the addition of online casino gambling, this number is expected to increase significantly.
The influx of revenue from online gambling has also been beneficial to the state’s economy, creating jobs and increasing tax revenue. The New Hampshire Lottery alone employs over 100 people, and with more operators entering the market, this number is expected to grow.
In terms of projected growth, experts predict that New Hampshire’s online gambling revenue could reach $50 million by 2022, with even higher numbers in the future. This growth will largely be driven by the increasing popularity of online gambling, as well as the potential for new types of games to be introduced in the state.
Regulations and Licensing
New Hampshire’s online gambling market is regulated by the state’s Racing and Charitable Gaming Commission, which oversees all forms of legal gambling in the state. The commission is responsible for issuing licenses to operators, ensuring compliance with regulations, and enforcing penalties for any violations.
Currently, only three operators have been approved for online gambling in New Hampshire – DraftKings, BetMGM, and Rush Street Interactive. These operators were selected through a competitive bidding process, with the state lottery choosing them based on their proposed revenue share and other factors.
To operate in the state, these operators must pay a $250,000 licensing fee and adhere to strict regulations set by the commission. These regulations include responsible gambling measures, such as age verification and self-exclusion options, to ensure the safety and well-being of players.
Impact on the Community
While the legalization of online gambling in New Hampshire has brought in much-needed revenue for the state, it has also raised concerns about its impact on the community. Opponents of online gambling argue that it can lead to increased problem gambling and have a negative effect on vulnerable individuals.
To address these concerns, New Hampshire has implemented several responsible gambling measures, such as age verification and self-exclusion options. The state also has a Problem Gambling Services program that provides resources and support for those who may be struggling with gambling addiction.
Furthermore, a portion of the revenue from gambling goes towards funding education and charitable causes, benefiting the community in other ways. For example, the lottery has contributed over $2.3 billion to the state’s education system, while charitable gaming has supported numerous nonprofit organizations.
Future Outlook
The future of online gambling in New Hampshire looks promising, with potential for growth and expansion in the market. The state is constantly looking at ways to improve its regulations and attract more operators, which could lead to an increase in revenue and job opportunities.
In addition, with advancements in technology, we could see new types of online gambling emerge in the state, providing even more options for players. It’s also possible that physical sportsbooks and casinos may be established in the future, further adding to the state’s revenue.
Conclusion
In conclusion, New Hampshire’s online gambling market is still in its infancy but has shown significant growth potential. With the legalization of online sports betting and casinos, the state has opened up more opportunities for revenue and economic growth.
While there are concerns about the impact of gambling on the community, New Hampshire has implemented strict regulations and responsible gambling measures to mitigate these risks. With proper oversight and regulation, online gambling can continue to benefit the state while also ensuring the safety and well-being of its residents.
