New Hampshire opt-out law prompts eight municipal casino bans

Eight New Hampshire municipalities are moving to block casinos from being opened within their borders by taking advantage of a new state law that gives communities the power to opt out of hosting gambling establishments.

The municipalities of Henniker, Candia, Bedford, Barrington, Hancock, New London, and Littleton have approved measures barring new casinos within town limits. The city of Portsmouth also adopted a ban within three months of House Bill 737 being signed into law by the governor.

Conway is expected to hold a similar vote this week.

The measure applies only to future casino proposals. Under the law, communities that vote to opt out cannot be selected for new gaming establishments, but projects already operating or already in development remain protected under a grandfather provision.

Existing projects remain protected

That provision is relevant in Littleton, where a casino proposal backed by an out-of-state operator has been under development for at least three years. In February, a developer operating through GSG Littleton Propco LLC purchased property in town for a planned gaming venue, according to state and local records.

State Rep. Bill Boyd, a Merrimack Republican who sponsored the casino opt-out bill, said Littleton’s local vote would not affect the project because it predates the town’s action.

Under the law as written, only new casino sites are restricted in municipalities that adopt an opt-out vote.

Local authority at the center of debate

The law took effect last year and gives towns and cities the authority to decide whether casinos can be located within their borders. This provision differs from the existing municipal authority to opt out of Keno, the state-run lottery game.

Boyd, who also sponsored legislation authorizing social districts in municipalities last year, said both laws were intended to give communities more control over what is allowed within their boundaries.

“I’m not surprised, but I’m very happy with the immediate engagement because it tells me that people are paying attention to local control and how they want their communities to look,” Boyd said, as reported by the Concord Monitor.

Amy Manzelli, president of the board of Granite Staters for Responsible Gaming, said residents have welcomed the ability to weigh in on what types of establishments are allowed locally.

“In New Hampshire, there’s a pretty deep and passionate vein of local control,” she said.

Industry growth draws municipal scrutiny

When gaming establishments were first legalized in New Hampshire, they were envisioned as smaller, locally owned operations. Since then, gaming halls have developed into larger venues that include restaurants and live entertainment.

Industry experts project New Hampshire’s gaming market could reach $1.1 billion within three years.

Manzelli said some communities are concerned about how larger gambling venues could affect local infrastructure, including traffic and emergency services.

“New Hampshire doesn’t really have a great mechanism for making sure municipalities have a way of dealing with those impacts,” she said. “As the gaming industry evolved, the laws were written for your classic ‘Mom and Pop’ type bingo night, very small-scale establishments.”

Boyd said casino operators still have other options across the state.

“Even if towns like Littleton don’t want you, you’ve got 260-some odd cities and towns that exist in the state of New Hampshire. I would think they (casinos) could find a community that would say, ‘we really want you to come to our community,’ and they will welcome them with open arms and work with their local system to make the facility happen,” Boyd said.