All eyes focused on Salem but Central N.H. interests want say on what happens on the gambling front as well

CONCORD — With the Legislature once again likely in 2013 to consider an initiative to introduce casino gambling, the New Hampshire Motor Speedway is intent on ensuring that the Lakes Region has a place at the table while the Lakes Region Casino in Belmont and Funspot at The Weirs fear the barrier to entry may be insurmountable..

Throughout her campaign Democratic Governor-elect Maggie Hassan expressed support for awarding a license for one casino through a competitive bidding process. With Massachusetts preparing to license as many as three casinos and a slots parlor, she believes New Hampshire should counter by permitting a facility that would capture revenue migrating already to Connecticut and eventually to Massachusetts. Moreover, with Democrats holding a majority in the House of Representatives and 11 of 24 seats in the Senate, Hassan looks to casino gambling as a revenue stream for at least restoring funding for higher education and other services that Republican majorities reduced in the current biennium.

When introducing video gambling first caught the fancy of lawmakers the four racetracks strung along the southern border from Hinsdale to Seabrook presented themselves as the optimal venues. But, opposition to rescuing failing racetracks and enriching their owners quickly led to a preference for opening franchises to competitive bidding bidding process. At the same time, concern about the proliferation of gambling venues and pressure from regions, especially the North County, for a piece of the action prompted plans to distribute a limited number of franchises on a geographic basis.

In 2010 a bill, adopted by the Senate but rejected by the House, would have authorized casino gambling at a golf resort and convention center in the southern tier and at two venues in the North Country. And in March a bill authorizing two casinos at least 100 miles part failed to carry the House.

Hassan has sometimes suggested a casino should be located along the southern border of the state and at other times said that the site should be the outcome of transparent, competitive bidding process. She has also spoken of "high-end" operation, echoing recent legislation that has required a minimal investment of $10-million.

If, as Hassan has said, only one franchise will be granted, Millennium Gaming, Inc. of Las Vegas, which owns nearly a dozen casino resorts, would appear to have the inside track. Since 2005, the company has held an option to purchase the Rockingham Park racetrack in Salem, where it has offered to pay an initial licensing fee of $50-million and invest $450-million in constructing a facility if the state authorizes video gambling. Furthermore, Millennium will enjoy the support of Senator Chuck Morse (R-Salem), the likely chairman of the Senate Finance Committee.

But Jerry Gappens of the speedway in Loudon said, "We have a very strong interest in participating in the conversation."

Two years ago NHMS, whose parent company Speedway Motorspots, Inc. of Charlotte, North Carolina has assets of more than $2-billion, presented a proposal for a casino and hotel complex representing an initial investment of some $30-million. "I understand Millennium is working with a greater sense of urgency," he said, "but it is premature to say it is the only spot. We are looking for a fair process."

Gappens pointed to Maine, where in addition to the casino in Bangor another gambling venue opened in Oxford in June. He said that revenue is running 45-percent ahead of projections and the facility is already expanding. "New Hampshire could do two upfront," he remarked.

A study prepared for the original proposal presented by NHMS projected gross revenues from gambling of $45-million in the first year from 750 video lottery terminals and 24 tables for traditional games. Construction of the facility would generate approximately 350 jobs while its operation would require 320 full-time employees. Gappens foresaw a gambling venue at NHMS "spurring development of the Route 106 corridor."

Rick Newman, general manager of the Lakes Region Casino in Belmont who has been engaged in the gambling debate for nearly two decades, said that Millennium represented stiff competition in a bidding contest.

But, Newman questioned whether a casino on Massachusetts border would compete with the planned casino at Suffolk Downs in East Boston. He said that Foxwoods has proven that a venue in a remote location can succeed and suggested that a casino resort in scenic surroundings further north might fare better. He noted that proceeds from gambling represent a diminishing share of the total revenue of casino complexes, which also offer entertainment, shopping and hospitality and regularly host conventions. The Center for Gaming Research of the University of Nevada Las Vegas reports that among casinos on the Strip, gambling's share of gross revenues has shrunk from 59-percent to 38-percent since 1984.

The role of the Lakes Region Casino in a competitive bidding process, Newman said, would depend on the initial licensing fee and investment required by the legislation, noting that Millennium has set a high bar. Meanwhile. he expressed concern for the future of charity gambling, which supports some 1,000 jobs, 65 of them at Belmont, and generates about $14-million in receipts across the state. He said he would seek to ensure that any legislation to permit casino gambling includes protections for charity gambling.

At Funspot in Laconia, Bob Lawton, who sought to add slot machines to his offerings in the past, also expected the initial costs of submitting a qualifying bid would be prohibitive. "Twenty years ago lots of different outfits could apply," he said. "Now its limited to the big gambling interests. It's unfair competition," he continued. "Gambling in New Hampshire should be handled by New Hampshire people so the money stays here."

Lawton shared Newman's fears for charity gambling. "We've had charity bingo for 16 years, seven nights a week, nine games a week," he said, explaining that Funspot rents the space and collects a fee from each player. "It's not huge for us, but it's okay. But, the charities — the Boys and Girls Club, St. Joseph's, Holy Trinity and so on — have made millions."

While locating a casino at Rockingham Park enjoys significant bipartisan support from lawmakers, there is no groundswell of support for expanded gambling in the Lakes Region. In the Senate, Republicans Jeb Bradley of Wolfeboro and Jeanie Forrester of Meredith have opposed gambling in the past.

"I've never supported it," Forrester said. "It is not right for the state. I will listen, she continued, "but I haven't heard anything that would convince me it would be a good thing for New Hampshire or the Lakes Region."

Newly elected Democrat Andrew Hosmer of Laconia said he expected some sort of gambling bill to succeed this year.

"If it's done right with strict oversight, I don't think it will dilute the New Hampshire brand and it will give us an influx of cash." While remarking "if there is any place that needs an economic boost, it's the Lakes Region," he said that he would want to hear from his constituents, particularly the local business owners who would be most affected by the opening of a casino, before supporting an effort to locate a casino in the region.