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Gambling pays out for NH nonprofits

By Staff | Jun 20, 2010

The state’s blooming legalized gambling industry has given rise to a business niche: companies that manage charitable gaming.

The New Hampshire Racing and Charitable Gaming Commission reports there are 17 sites licensed for “games of chance” in New Hampshire at venues that include Rockingham Park, Seabrook Greyhound Racing and The Lodge at Belmont.

In 2009, people placed $36.5 million dollars’ worth of bets on various games at these establishments, which offer poker tournaments and cash games, plus casino-type games of chance, such as roulette and blackjack.

The one thing that differentiates charitable gaming venues from casinos is the absence of slot machines and a $4 cap on how much can be bet on cash games.

Of that $36.5 million, the largest portion – $23.3 million – goes back to players as prize money. Participating charities received $4.5 million and the state netted $1.5 million in taxes, according to the Charitable Gaming Commission.

The gaming companies earned a gross profit close to $7.2 million before operational costs such as employee compensation, rent, utilities and equipment expense.

The River Card Room in Milford is a charitable gaming hall in its third year of operation. It employs about 33 people.

Owned and operated by New Hampshire Charitable Gaming, The River is a locally owned business independent from any out-of-state casino operators.

The business is open seven days a week, and features Texas Hold ’Em poker tournaments and casino-style table games. A portion of the daily proceeds goes to the day’s sponsoring charity.

Besides offering a night out for casual gamblers and tournaments to challenge serious poker players, The River Card Room has had a substantial impact on the fortunes of 30 local nonprofit charities in Greater Nashua. The projected five-year outlook for charity fundraising from this venue is $1.75 million.

Stacy Desrosiers, The River Card Room’s marketing and human-resources director, estimates the business funneled $350,000 to charities in 2009.

One charity that benefits is the Nashua Children’s Home, which received more than $10,000 last year.

The Nashua Children’s Home is a residential and educational facility that provides services to children ages 7-18 who are referred by child-protection agencies and the New Hampshire Probate Department.

It has recently started a transitional program for kids who have turned 18 and have “aged out” of the system.

“These kids are at high risk for homelessness and involvement in criminal activity, and for many, we are their only source of assistance,” said David Villiotti, the home’s executive director.

“We rely on public funding for 90 percent of our revenue, and 10 percent comes through private fundraising, such as The River Card Room.

“The proceeds we receive from charitable gaming takes a lot of pressure off of us.”

The Rev. Dr. “Odie” Odierna, pastor of the Church of the Good Shepherd in Nashua – another nonprofit sponsored at The River Card Room – concurs.

“Charitable contributions have deteriorated over the last three years due to the economy, so the reliable revenue from charitable gaming is very important for funding our programs,” he said.

Odierna is treasurer of the Nashua Pastoral Care Center, which helps families at risk of homelessness with the basic necessities, such as rent, utilities, food, transportation and medicine.

The Pastoral Care Center also sponsors charitable gaming for 10 days each year.

The charities receive 35 percent of the house take for each day of sponsorship, although they must cover costs from that.

The state rakes in a healthy amount of tax revenues from the charitable gaming rooms; anywhere from 3 percent to 10 percent of every dollar spent is supposed to go directly to the state.

Odierna said he thinks some of those tax revenues should be allocated to the health and human services agencies that have had to deal with severe funding cuts over the last two years.

“A little gambling is no more sinful than moderate drinking, and we do not consider either a sin,” Odierna said. “We do permit alcohol to be served at church functions.

“The church also has investments in the stock market, which can be likened to a casino.”

He dismisses the stereotype of all gambling being linked to organized crime.

“We have done all the due diligence investigating management at New Hampshire Charitable Gaming, and it is a legitimate, non-corrupt business with people of integrity as its leaders,” he said.

River Card Room General Manager Jeff Reddington estimates the card room draws about 100 regular customers, as well as guests looking for a night out.

About 80 percent of the patrons are men, but officials said there are women regulars, too, and all ages are represented, from 18 up to 90.

Betting is limited to a maximum of $4 per bet at the cash games tables and roulette wheel.

“You can have several hours of fun here for the equivalent of a night out to dinner and a movie or a concert,” Reddington said. “Plus, there’s always the possibility you’ll win some money.

“And a portion of what you spend goes to a good cause.”

Reddington is ambivalent about the state Legislature’s rejection of the expanded casino bill.

“It is both personally and professionally disappointing for me, but it’s probably good for The River because larger casinos would have drawn business away from us,” he said.

The River’s owner, New Hampshire Charitable Gaming, had plans to build a casino in the Berlin area if the bill had passed. The company says the casino would have created 150 full-time jobs during its initial phase, with 500 jobs of varying types over the long term.

Although this year’s proposals for expanded gambling are all but dead, there is still the possibility of casinos being built in New Hampshire because gambling is still seen as a revenue generator and budget fix for the state’s deficits.

Even though the proposed legislation mandated that casinos set aside a fixed area specifically for nonprofit charitable gaming, the lure of high stakes and slot machines is likely to siphon off charitable gaming customers.

Jim Rubens, executive committee chairman of the Coalition Against Expanded Gambling, believes there is a big difference between charitable gaming and expanded casino gambling.

“Charitable gaming is mostly cards, which is a social experience that takes some skill and which has bet limits,” he said. “Slot machines are built to mesmerize and addict players, and can bankrupt people.”

He is adamant about the threat to charitable gaming from casinos.

“The charitable gaming companies are being lied to by Las Vegas interests, which is where the money will go from expanded casino gambling,” he said. “If casinos and slots come to New Hampshire, charitable gaming will be wiped out.”

Although the casino is on hold, Reddington says, The River has plans for further growth.

“We are going to add some table games for more variety and we will be introducing new poker tournament formats.”

Kay Fitzpatrick is a freelance writer who lives in Townsend, Mass. She can be reached at k.fitz@lycos.com.