Committee Summary for House Finance Division II (02/21/2025)

Bill/Time	Type	Title	Sponsor
Unclear 00:01:58.840 - 12:30:24 PM	General Working Session	Unclear
HB2 00:16:59.240 - 12:45:25 PM	General Working Session	relative to state fees, funds, revenues, and expenditures.	Weyler, Kenneth(R)[A-]2025

Unclear: Charlie McIntyre, Director of the New Hampshire Lottery Information Only00:01:58.840 - 12:30:24 PM; Charlie McIntyre, the Director of the New Hampshire Lottery, presented a brief overview of the lottery budget, highlighting the revenues versus expenses, and the revenues by product. He explained the operations of the lottery, emphasizing its business-like structure with various divisions such as sales, marketing, security, finance, compliance, and investigations and enforcement. McIntyre noted the significant growth in net profitability to the state's education trust fund, which had tripled from $62 million in FY 2011 to $207 million in FY 24. He discussed the impact of Powerball jackpots on revenue and the lottery's status as the number one jurisdiction for Powerball sales per capita. McIntyre also mentioned the lottery's budget requests for security system upgrades and ADA compliance improvements, highlighting the need due to outdated infrastructure and security concerns.
Unclear: Representative Papovich Information Only00:08:36.279 - 12:37:02 PM; Representative Papovich inquired about the nature of the revenue figures presented, specifically asking if they represented gross or net revenue. McIntyre clarified that the figures were gross revenue for most products but net for others like iLottery and sports betting before expenses. Papovich requested a breakdown of profits per game, to which McIntyre referred to page 42 of their annual report available online.
Unclear: Unnamed Representative Information Only00:16:59.240 - 12:45:25 PM; An unnamed representative questioned the steep increase in operating expenses from 2022 to 2025, expressing concern over the budget in light of the state's tight financial situation. McIntyre explained the increases were due to a negotiated collective bargaining agreement, the addition of employees to handle the expansion of charitable gambling rooms with historic horse racing, increased advertising to support revenue growth, and significant IT expenses for implementing a Salesforce application. He emphasized that the lottery has never fully spent its allocated budget, as unspent funds return to profit for the education trust fund.
HB2: Unnamed Representative Information Only00:16:59.240 - 12:45:25 PM; The representative emphasized the importance of understanding the true needs of agencies and ensuring that budgets reflect these needs without punishing agencies for not spending their full allocations. They highlighted that any unspent dollars would ultimately benefit the education trust fund, which, while not part of the general fund, serves important purposes. The representative also acknowledged the challenges of managing budgets in a time when additional gaming operations are expected to come online, expressing a need for careful management and regulation of these new rooms.
HB2: Unnamed Representative Information Only00:27:09.320 - 12:55:35 PM; The representative discussed the challenges of budget management, particularly with the upcoming biennium, where new gaming operations like slots are expected to be introduced. They expressed concerns about the budget gaps, specifically mentioning the significant difference in revenue estimates between the Governor's projections and those of the Ways and Means Committee. They also questioned how these gaps could be reconciled, seeking insight into the process and the potential impacts on the budget.
HB2: Unnamed Representative Information Only00:28:42.360 - 12:57:08 PM; The representative provided detailed insights into the revenue estimation process, highlighting the conservative approach taken early in the year. They noted the impact of unexpected factors such as the launch of sports betting in Massachusetts and the profitability of historic horse racing machines, which exceeded initial estimates. They explained the rationale behind the revenue figures in the Governor's budget, emphasizing the need for caution in revenue projections due to unpredictable variables.
HB2: Unnamed Representative Information Only00:30:15.240 - 12:58:41 PM; The representative sought clarification on the differences between the revenue estimates used by the Ways and Means Committee and those in the Governor's budget. They pointed out the timing of these estimates and how they were based on data from the Christmas period, which is crucial for forecasting. They expressed a preference for conservative estimates to avoid over-promising and under-delivering, which could lead to difficult budgetary discussions later.
HB2: Unnamed Representative Information Only00:35:44.599 - 1:04:10 PM; The representative discussed the transition from historic horse racing machines to video terminal slot machines (VTS), clarifying that the change would not be visually significant but would improve player engagement and revenue. They anticipated an increase in both the number of players and the frequency of play, especially from residents of neighboring states, due to the location of gaming facilities near state borders.
HB2: Unnamed Representative Information Only00:38:02.800 - 1:06:28 PM; The representative questioned the public's perception of the transition from historic horse racing to slot machines, noting potential resistance if the change was perceived as a significant policy shift. They sought clarification on the financial implications of this transition, particularly the projected revenue increases and how they would be distributed between the state and other entities.
HB2: Unnamed Representative Information Only00:44:16.480 - 1:12:42 PM; The representative inquired about the seasonal patterns of revenue, particularly during the summer when tourism peaks. They were interested in understanding if there was a noticeable increase in revenue during these periods and how the state's gaming facilities cater to out-of-state visitors. The discussion highlighted the strategic placement of gaming facilities near state borders to attract non-residents.
HB2: Unnamed Representative Information Only00:45:50.240 - 1:14:16 PM; The representative asked about the willingness of current historic horse racing operators to transition to VTS machines, given the recent investments in their current equipment. They were informed that most operators were enthusiastic about the change, and the conversion cost, while significant, was manageable and would not result in a loss of investment.
HB2: Unnamed Representative Information Only00:46:37.079 - 1:15:03 PM; The representative sought to understand the process for introducing new gaming products like VTS, specifically whether the Lottery Commission could implement such changes independently or if legislative approval was required. They were informed that legislative action would be necessary for such a policy change, and the matter was currently under consideration in various bills, including HB2.
HB2: Unnamed Representative Information Only00:48:09.920 - 1:16:35 PM; The representative discussed the legislative process for the VTS bill, noting that it was contained within multiple pieces of legislation, including HB2 and HB728. They clarified that the Ways and Means Committee would review and decide on the policy aspects of the bill, and any changes to the budget would be considered after the policy was set.
HB2: Unnamed Representative Information Only00:49:42.880 - 1:18:08 PM; The representative confirmed that the current revenue projections in HB2 were consistent with the legal language in the bill, but noted that potential changes by the House could affect future projections. They also mentioned the need for additional positions if the VTS bill were to pass, which would be reflected in future fiscal notes.
HB2: Unnamed Representative Information Only00:50:28.200 - 1:18:54 PM; The representative inquired about the proportion of internet-based gaming revenue, specifically sports betting and iLottery. They were informed that a significant portion of sports betting revenue comes from mobile internet, while iLottery is entirely internet-based. They also discussed the technology used to monitor and enforce geographic restrictions on gaming activities.
HB2: Unnamed Representative Information Only00:55:51.039 - 1:24:17 PM; The representative highlighted the benefits of regulated gaming, such as ensuring legal recourse and providing resources for those with gambling addiction issues. They discussed the measures in place to protect consumers, including self-exclusion lists and monitoring by call centers for signs of problematic gambling behavior.
HB2: Unnamed Representative Information Only00:57:30.160 - 1:25:56 PM; The representative addressed an increase in the authorization for purchasing scratch tickets from $6 million to $15 million, as proposed in the trailer bill. They explained that this change was necessary due to increased scratch ticket sales and did not impact the budget directly. They also confirmed that HB2 contained language authorizing video gaming.