Bill Text: NH SB168 | 2025 | Regular Session | Introduced
Bill Title: Regulating online gambling and directing net proceeds to the education trust fund, the general fund, and to reimburse municipalities for elderly, disabled, blind, and deaf tax exemptions.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced) 2025-01-23 - Introduced 01/09/2025 and Referred to Ways and Means; Senate Journal 3 [SB168 Detail]
Download: New_Hampshire-2025-SB168-Introduced.html
SB 168-FN-LOCAL - AS INTRODUCED
2025 SESSION
25-0958
02/05
SENATE BILL 168-FN-LOCAL
SPONSORS: Sen. Lang, Dist 2; Sen. Innis, Dist 7; Sen. Pearl, Dist 17; Sen. Murphy, Dist 16
COMMITTEE: Ways and Means
─────────────────────────────────────────────────────────────────
ANALYSIS
This bill regulates online gambling and directs proceeds to a newly established elderly, disabled, blind, and deaf tax exemption fund for reimbursement to municipalities.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0958
02/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Elderly, Disabled, Blind, and Deaf Exemption Reimbursement Fund Established. Amend RSA 72 by inserting after section 42 the following new section:
72:42-a Elderly, Disabled, Blind, and Deaf Exemption Reimbursement Fund Established.
I. There is hereby established in the state treasury an elderly, disabled, blind, and deaf exemption reimbursement fund. The nonlapsing fund shall be kept separate and distinct and separate from all other funds and shall be continually appropriated to the department of revenue administration for the purposes of this section. The fund shall be used to reimburse municipalities for revenue not realized due to tax exemptions utilized in their communities under RSAs 72:37, 72:37-b, 72:38-b, 72:39-a, and 72:39-b. The fund shall be funded by fees collected pursuant to RSA 287-J:7.
II.(a) Not later than May 1 of every year, the department of revenue administration shall provide to the department of treasury a report of the exemptions under RSA 72:37, 72:37-b, 72:38-b, 72:39-a, and 72:39-b, as reported by municipalities on their summary inventory of valuation (MS-1) for the preceding tax year.
(b) Not later than July 31 of every year, the department of revenue administration shall pay to each municipality out of the fund the amount reported pursuant to subparagraph (a), as reimbursement.
(c) Notwithstanding subparagraph (b), if the fund does not have sufficient funds to fully pay municipalities as set forth in subparagraph (b), the department of revenue administration shall pay to each municipality a pro-rated amount of its reported exemptions, by applying the ratio of available funds to total claimed exemptions to each municipality’s reported exemptions.
(d) Not later than October 1 of every year, the department of revenue administration shall issue a report of the amounts paid to municipalities under either subparagraph (b) or (c), for use by the department in municipal rate setting.
III. The department of revenue administration is authorized to create rules under RSA 541-A to implement this section.
2 New Subparagraph; Online Gambling. Amend RSA 647:2, V by inserting after subparagraph (f) the following new subparagraph:
(g) Gambling done over an Internet connection on a website on the Internet.
3 New Chapter; Online Gaming. Amend RSA by inserting after chapter 287-I the following new chapter:
CHAPTER 287-J
ONLINE GAMING
287-J:1 Definitions. In this chapter:
I. "Authorized online gaming bettor" means an individual 18 years of age or older who is physically present in the state of New Hampshire when placing an online gaming wager with the commission or an authorized Internet gaming operator of the commission and is not a prohibited online gaming bettor.
II. "Commission" means the lottery commission.
III. "Director" means the executive director of the lottery commission or designee.
IV. “Internet gaming skin” means a distinctly branded Internet gaming platform operated by an Internet gaming operator, under a contract with a licensed gaming facility in the state of New Hampshire, which may encompass a website, mobile application, or other portal to the Internet gaming platform. The brand may be that of the Internet gaming licensee or its affiliate, the Internet gaming management vendor, the licensed gaming facility, or another brand as agreed upon by the Internet gaming licensee and its Internet gaming management vendor.
V. "Licensed gaming facility" means a casino in New Hampshire licensed to operate historic horse racing machines or table games.
VI. "Internet gaming operator" means a party or parties licensed and approved by the commission to conduct online gaming under a contract with a licensed gaming facility in the state of New Hampshire.
VII. "Online gaming wagering platform" means the combination of hardware, software, and data networks used to manage, administer, record, and/or control online gaming wagers.
VIII. "Online gaming wager" means cash or cash equivalent paid by an individual to participate in online gaming wagering.
IX. "Online gaming" means games of chance as defined by RSA 287-D:1, III and electronic gaming devices as defined by RSA 284:6-a, VI, offered on a website, mobile platform, or online gaming wagering platform.
X. “Permissible jurisdiction” means another jurisdiction from which wagers may be accepted under an interstate gaming reciprocal agreement.
XI. "Prohibited online gaming bettor" means:
(a) Any member or employee of the commission and any spouse, child, sibling, or parent residing in the same household as a member or employee of the commission.
(b) Any principal or employee of any Internet gaming operator.
(c) Any contractor of the commission or its Internet gaming operators when such contract relates to the conduct of online gaming wagering.
(d) Any contractor or employee of an entity that conducts online gaming wagering in another jurisdiction when the bettor possesses confidential nonpublic information as a result of his or her contract or employment relating to the wager being placed.
(e) Any individual placing a wager as an Internet gaming operator of or proxy for a prohibited online gaming bettor.
(f) Any person under the age of 18.
287-J:2 Commission. The commission is authorized to approve licenses for online gaming to no more than 6 and no less than 3 online gaming wagering platforms in the state for the purposes of accepting and paying wagers by authorized online gaming bettors within the state or other authorized jurisdiction pursuant to this chapter.
287-J:3 Online Gaming Operators. Each online gaming operator must contract with a licensed gaming facility within the state of New Hampshire, via an Internet gaming skin as defined in this chapter, to conduct Internet gaming.
287-J:4 Approved Contracts. Any contract between facilities and an Internet gaming operator shall be subject to approval by the commission, and based on the state receiving a percentage of revenue from online gaming activities within the state. All Internet gaming operators shall be subject to criminal and financial background checks as prescribed by the commission.
287-J:5 Online Gaming Wagering Authorized; Wagers. With respect to online gaming wagers, gaming facilities, either independently, or through its an online gaming platform, shall provide:
I. Age verification measures to be undertaken to block access to and prevent online gaming wagers by persons under the age of 18 years.
II. Identity verification through secure online databases or by in-person examination of photo identification at licensed gaming facilities.
III. Geographic restrictions to ensure that online gaming wagers must be initiated and received within the geographic borders of the state of New Hampshire, or a permissible jurisdiction, and shall not be intentionally routed outside of the state. The incidental intermediate routing of a mobile online gaming wager shall not determine the location or locations in which such a wager is initiated, received, or otherwise made.
IV. Wager limits for daily, weekly, and monthly amounts consistent with the best practices in addressing problem gambling.
V. A voluntary self-exclusion program for players to self-exclude themselves from online gaming wagering for set periods of time.
VI. Security mechanisms to ensure the confidentiality of wagering and personal and financial information except as otherwise authorized by this chapter.
287-J:6 Online Gaming Wagering Supervision. The commission shall create a division of online gaming wagering which shall be responsible for ensuring compliance with the requirements of this chapter and any rules adopted by the commission in accordance with the authorities granted under this chapter. In addition, the division, under the direction of the director and commission, shall ensure that the commission's Internet gaming operators comply with the following obligations:
I. Each Internet gaming operator engaged in online gaming wagering shall submit a security and internal control report for the division's review and approval prior to conducting any online gaming wagering within the state and every year thereafter. This report shall address all aspects of security and controls including physical security, personnel security, and computer systems security including:
(a) Employment background checks and policies.
(b) Automated and manual risk management procedures.
(c) Procedures for identifying and reporting fraud and suspicious conduct.
(d) Any and all monitoring systems utilized by the Internet gaming operators to report and receive information on suspicious betting activities.
(e) Systems and procedures to prevent prohibited online gaming bettors from placing wagers.
(f) Description of anti-money laundering compliance standards.
(g) Descriptions of all integrated third-party systems or components and the security procedures relating to those systems.
II. For each wagering computer system used to conduct online gaming wagering, including all mobile online gaming wagering platforms within the state, the Internet gaming operator providing such system shall provide a detailed computer system security report to be approved by the commission prior to the acceptance of wagers and each year thereafter. The report shall address the issues set forth in the security and internal control report along with the following:
(a) Documented system security testing performed by a licensed third-party contractor approved by the commission.
(b) A description of all software applications that comprise the system.
(c) A procedure for third-party auditing of financial transactions received by the system.
(d) A description of all types of wagers supported by the system.
(e) Unique identification and verification systems for wagers.
(f) A list of data recorded relating to each wager.
(g) System redundancy to ensure recording of wagers during a system outage.
(h) A mechanism to provide read only access to the commission to the back office system for the purposes of reviewing and auditing wagering activities.
(i) Integration with an independent control system to ensure integrity of system wagering information.
(j) Capabilities for freezing or suspending wagering across the platform.
(k) Any other issue identified by the division upon review of the proposed gaming system.
III. Each Internet gaming operator engaged in online gaming wagering shall submit rules for each online game for the division's review and approval prior to conducting any online gaming wagering within the state and every year thereafter. These house rules shall include at a minimum:
(a) The method for calculation and payment of winning wagers.
(b) Treatment of errors.
(c) Method of contacting the Internet gaming operators for questions or complaints.
(d) The policies and procedures in place for limiting or banning a player from the online gaming wagering platform.
(e) The method and location for posting and publishing the rules for each online game.
IV. Each Internet gaming operator engaged in online gaming wagering shall submit accounting controls for the division's review and approval prior to conducting any online gaming wagering within the state and every year thereafter. These accounting controls shall include at a minimum:
(a) A process for documenting and verifying beginning of day cash balance.
(b) The establishment of a segregated account related to New Hampshire online gaming wagering activities.
V. Each Internet gaming operator shall submit a responsible gaming plan for the division's review and approval prior to conducting any online gaming wagering within the state and every year thereafter. This plan should include identification of posting and materials related to problem gaming, resources to be made available to bettors expressing concerns about problem gaming, house imposed player limits, and self-exclusion programs.
VI. Each Internet gaming operator shall maintain a cash reserve available to pay wagers as determined by the commission.
VII. Each Internet gaming operator shall not accept any wager on any online game unless it has received approval from the commission to conduct that type of online game.
VIII. Wagers made under this section shall be made with:
(a) Cash.
(b) Cash equivalent.
(c) PayPal.
(d) Debit card.
(e) ACH.
(f) Promotional funds.
(g) Any other means approved by the executive director.
287-J:7 Revenue Share.
I. Each licensee under this chapter shall collect a sum equal to 45 percent of gross online gaming revenue for distribution under paragraph II.
II. The total amount collected by the licensee under paragraph I shall be paid to the commission and distributed as follows:
(a) Twenty-five percent to the special fund established under RSA 284:21-j for use as provided in that section.
(b) Twenty-five percent to the elderly, disabled, blind, and deaf exemption reimbursement fund established pursuant to RSA 72:42-a.
(c) Fifty percent to the general fund.
287-J:8 Limitations on Online Gaming Wagers. Each Internet gaming operator is prohibited from the following activities:
I. Accepting or making payment relating to online gaming wagers made by prohibited online gaming bettors.
II. Accepting online gaming wagers from persons who are physically outside of the state of New Hampshire at the time of the online gaming wager.
III. Accepting online gaming wagers from persons outside of the state of New Hampshire not in compliance with RSA 287-J:9.
287-J:9 Acceptance of Out-of-State Wagers. Notwithstanding any other provision of law to the contrary, wagers may be accepted pursuant to this chapter from persons who are not physically present in the state of New Hampshire if the commission has determined that:
I. Accepting the wagers is not inconsistent with federal law or the laws of New Hampshire; or
II. The wagering is conducted pursuant to a reciprocal agreement to which the state of New Hampshire is a party that is not inconsistent with federal law.
287-J:10 Financial Reports. The commission may seek financial and compliance reports from its Internet gaming operators periodically and may conduct audits of these reports to ensure that the state receives the agreed upon revenue sharing proceeds.
287-J:11 Compliance Reviews. The commission shall retain oversight of its Internet gaming operators to ensure that all online gaming wagering activities are conducted in accordance with this chapter and any rules adopted by the commission.
287-J:12 Rulemaking. The commission shall adopt rules, pursuant to RSA 541-A, relative to the operation, conduct, location, and oversight of online gaming wagering. The commission may enact emergency rules, pursuant to RSA 541-A:18, which will take effect upon approval.
287-J:13 Prohibition on Authorization of Internet Gaming Operators Operating in Terror States and Illegal Markets.
I. Prior to the authorization of an Internet gaming operator under this section, the commission shall conduct a comprehensive investigation of the prospective Internet gaming operator to determine whether the Internet gaming operator or any of its affiliates, including entities under common control, is knowingly:
(a) Accepting revenue, directly or indirectly, derived from any jurisdiction sanctioned by the Office of Foreign Assets Control (OFAC) of the United States Treasury; or
(b) Accepting or assisting, directly or indirectly, in the acceptance of online wagers or consideration related to online wagering from any country in which such online gaming is prohibited or illegal.
II. The commission shall not authorize an Internet gaming operator under this section if the commission determines that the Internet gaming operator or any of its affiliates, including entities under common control, is knowingly:
(a) Accepting revenue, directly or indirectly, derived from any jurisdiction sanctioned by the Office of Foreign Assets Control (OFAC) of the United States Treasury Department; or
(b) Accepting or assisting, directly or indirectly, in the acceptance of online wagers or other consideration related to online wagering from any country in which such online gaming is prohibited or illegal.
III. If at any time during authorization the commission determines that the Internet gaming operator or any of its affiliates, including entities under common control, is knowingly:
(a) Accepting revenue, directly or indirectly, derived from any jurisdiction sanctioned by the Office of Foreign Assets Control (OFAC) of the United States Treasury Department; or
(b) Accepting or assisting, directly or indirectly, in the acceptance of online wagers or other consideration related to online wagering from any country in which such online gaming is prohibited or illegal, the commission shall impose discipline up to and including revocation of the license held by the Internet gaming operator.
4 New Subparagraph; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (399) the following new subparagraph:
(400) Moneys deposited in the elderly, disabled, blind, and deaf exemption reimbursement fund as established in RSA 72:42-a.
5 Effective Date. This act shall take effect January 1, 2026.
25-0958
1/20/25
SB 168-FN-LOCAL- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT:
The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from the Lottery Commission and Department of Revenue Administration. The entities were contacted on 1/20/25 for a fiscal note worksheet. When completed, the fiscal note will be forwarded to the Senate Clerk's Office.
AGENCIES CONTACTED:
Lottery Commission and Department of Revenue Administration
