[mcdude]

CONCORD, N.H. (AP) -- A tight state budget combined with a faltering economy has prompted state leaders to take yet another look at expanded gambling. The House Ways and Means Committee recommended this fall that the state pass future gambling legislation by a 9-8 vote. In recent years, expanded gambling measures have been proposed almost every legislative session with little success, but antigambling groups are now worrying the need for funds will sway legislators to approve more gambling. Gambling proponents say the state can no longer continue to make large cuts in the state budget without hurting important programs. Adding slot machines at the state's existing racetrack could bring in millions, but opponents worry that expanded gambling would also bring crime and hurt the local quality of life.

Nov. 16th

New Hampshire's weakening economy is bad for business and hard on state government. But it may be good for the gambling industry, where hopes are high that a desperate need for new revenue this year will inspire legislators to allow slot machines at the state's racetracks and beyond. In the meantime, both pro- and anti-gambling forces are girding for a tough fight at the State House. "This is going to be our hardest fight ever," said Jim Rubens, a former state senator who chairs the Granite State Coalition Against Expanded Gambling. The pro-gambling case has made inroads in the House and Senate over the past year. Last spring, a slot machine bill narrowly failed in the Senate; this fall, the House Ways and Means Committee voted 9-8 to recommend a bill to expand gambling. That's a tremendous change, said Jim Demers, a lobbyist who represents Millennium Gaming, the Las Vegas-based company that wants to install slot machines at Salem's Rockingham Park, a horse and dog racetrack.
"I think the actions of the House Ways and Means Committee, which is not considered an extremely pro-gambling committee, speaks volumes to the concerns legislators have as to how to deal with the budgetary process," Demers said. "It's the state's call, but in these very challenging times, there's going to be cuts," said Rich Killion, a lobbyist for the Rock. "But there's only so far you can go before you start impacting our quality of life." Always hard, New Hampshire's budget process this year may be the most difficult in a generation. This year's budget, which ends in June, is now projected to fall short $250 million. Think-tanks have calculated that the next two-year budget could have a starting-point shortfall - assuming current services are maintained and commitments like contractual wage increases are honored - of a half-billion dollars.
Both fans and foes of casino operators say the budget climate may make the political climate ripe for expanded gambling. Plans generally involve permitting high-tech slot machines, or "video lottery terminals" at the state's four horse or greyhound racing tracks, turning them into so-called "racinos," plus potentially allowing one or more of the North Country's grand hotels a permit for slots. Gambling proponents say the state could reap $150 million a year or more from slots, some of which, they argue, is money residents are already spending in one of the other states that do allow casino-style gambling, including Maine and Connecticut. Opponents question those estimates, saying that the cost of affiliated social problems like addiction and crime would wipe out much or all of the state's take.
Pro-gambling legislators say slots are the only viable way for the state to bring in big money. Other major potential revenue streams - either an income or sales tax - are widely seen as doomed because Gov. John Lynch has always said he would veto either. Over the past four years, Lynch, a Democrat, has had a consistent, if oblique, stance on gambling: He's always said that before he can support it, he'll need evidence that it won't harm New Hampshire's quality of life. Pro-gambling forces see that as an open door.

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