Lynch vows to veto gambling bills

Hoping to squelch efforts to expand gambling, Gov. John Lynch promised yesterday to veto bills that would legalize video slots in New Hampshire.

The Democratic governor told Republican legislative leaders the state does not have an adequate regulatory structure in place. He also reiterated past concerns about the possible effects on New Hampshire's quality of life and that there would be no way to limit the number of casinos approved in the future.

He also said he was concerned about the potential influence gambling lobbyists and industry officials would have on the state.

"If New Hampshire was to allow expanded gambling, this one industry could come to represent a significant portion of the state revenues, potentially wielding outsized control over policy debates," he said.

Lynch said just because Massachusetts is close to a deal allowing casinos does not mean New Hampshire should also.

"After a great deal of thought and consideration, I have determined that the risks to New Hampshire from expanded gambling are simply too high, and for that reason I will veto any legislation allowing casinos or (racetrack casinos) in our state," Lynch wrote Senate President Peter Bragdon and House Speaker Bill O'Brien.

The House appears ready to abandon its longstanding opposition to casinos. A House committee is recommending legalizing two casinos. Some of the state's profit would be used to lower business taxes. Supporters estimate the state's share could be as much as $200 million a year.

The proposal calls for the Lottery Commission to grant two $50 million licenses two years apart for casinos that would offer slot machines and table games. Each casino could install 5,000 video slot machines.

The Senate has passed bills to legalize gambling in the past, but not the House. The House and Senate will vote on gambling bills early next year.

A Senate committee last week indicated it wants to keep its options open on legalizing four casinos with a maximum of 10,000 video slot machines. It is recommending that the full Senate vote to study the bill, but indicated that recommendation could change depending on what the House does.

The Senate bill would not use the state's profits to cut taxes. Like the House bill, two $50 million licenses would be granted, each qualifying for 3,500 video slots. A third license for $30 million would entitle the licensee to operate 2,000 machines and a fourth license for $15 million would allow operation of 1,000 machines. Licenses to operate table games would cost another $10 million. The Lottery Commission would have general oversight of the casinos.

Millennium Gaming Inc. of Las Vegas proposes to building at Rockingham Park race track in Salem if lawmakers allow it. Millennium proposes investing $450 million in the project. Green Meadow Golf Club in Hudson also has said it would like a license for a proposed resort.

"I think it makes sense to continue moving forward with the legislation and hopefully by the time it reaches the governor's desk, he will be more comfortable and recognize the positive impact it will have on the people of New Hampshire," said Millennium spokesman Jim Demers.

House Republican Leader D.J. Bettencourt of Salem said Lynch offered no solution on how to "mitigate the substantial loss of our lottery revenue to Massachusetts through inaction in New Hampshire.

"I am disappointed that Gov. Lynch has chosen to take this path and watch our citizens' money go to Massachusetts instead of keeping it here and attracting revenue from citizens from other states that could be used to create jobs here," he said.

State Sen. Lou D'Allesandro, a Manchester Democrat and sponsor of the Senate's gambling bill, said not legalizing casinos will be a missed opportunity to create jobs.

"I do believe it's an opportunity missed and we've been missing it for the last decade," he said.

Others have expressed interest in building casinos further north, away from the Massachusetts border. (next page »)