New Hampshire’s Disputed Charity Gaming Scene

The charitable gaming industry in New Hampshire is currently being investigated for allegations of misconduct and unethical behavior. Despite efforts to promote fairness and transparency in 2006, the industry is now facing accusations of high rents, misappropriation of funds, and unethical conduct. Former state Senator Andy Sanborn, who owns Concord Casino, is at the center of the controversy, accused of taking a larger share of gambling proceeds by imposing high initial rents on partnering charities. In response, a legislative commission has been created to address these issues and restore public trust in the industry.

The allegations against Andy Sanborn and his wife Laurie reveal a troubling picture of greed and exploitation. While the partnering nonprofits of Concord Casino received only 17.5% of the gambling proceeds, the Sanborns allegedly used the money for personal luxuries, such as buying three race cars. This disregard for the intended purpose of charitable gaming has understandably caused anger and calls for accountability.

However, the misconduct is not limited to Concord Casino. Other charitable gaming facilities in the state have charged varying rents with no clear consistency, ranging from $375 to $750 per night. This lack of uniformity raises concerns about the outdated and conflicting regulations governing the industry. Lawmakers and regulators are now questioning how these facilities have managed to keep a larger share of the proceeds that should be going to charity.

One important issue highlighted in the investigation is the state’s allowance of floating rental rates, despite laws prohibiting such practices. The Lottery Commission, responsible for overseeing charitable gaming, has allowed facilities to negotiate lower rental rates with charities, which goes against the fixed rents mandated by state law. This inconsistency has created an opportunity for operators like Sanborn to take advantage of the system and prioritize personal gain over the needs of charities.

The misappropriation of funds took a more troubling turn when it was alleged that the Sanborns fraudulently obtained $844,000 in COVID-19 relief loans meant for struggling businesses. Instead of using the funds as intended, the couple allegedly spent them on their lavish lifestyle, including buying sports cars. In response, the New Hampshire Attorney General’s Office and the Lottery Commission moved quickly to revoke Sanborn’s operating license, a decision that he is currently contesting.

The impact of these unethical practices on local charities should not be underestimated. Charitable gaming is a crucial source of funding for many nonprofits, with the industry contributing 35% of its proceeds to support important programs and services. However, the investigation has shown that many charities have received less than their required share, leaving them financially disadvantaged and unable to fulfill their missions effectively.

Despite these revelations, it is important to acknowledge that charitable gaming still plays a vital role in supporting local communities. When operated ethically and transparently, the industry has the potential to have a positive impact. To address the concerns raised by the investigation, a legislative commission has been formed. This commission, comprising representatives from the charitable gaming industry, lawmakers, and regulators, will work together to propose reforms and establish a fair and transparent system.

As the investigation continues and the commission delves deeper into the complexities of New Hampshire’s charitable gaming industry, it is essential for lawmakers and regulators to address the outdated regulations and conflicting practices that have allowed misconduct to persist. By promoting transparency, accountability, and fair distribution of funds, the state can restore public trust in charitable gaming and ensure that its intended purpose of supporting local communities is fulfilled.