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CONCORD, N.H. — A legislative push by New Hampshire Democrats to redirect millions in charitable gaming revenue to the state’s coffers is facing mounting backlash from Republican lawmakers, business leaders, and nonprofit organizations across the state.
House Bills 531-FN and 588-FN, currently under review in the Ways and Means Committee, would significantly alter how revenue from historic horse racing (HHR) and games of chance is distributed. HB 531-FN would cap annual charitable gaming allocations at $50,000 per nonprofit, with any excess going to the state’s Lottery Commission. HB 588-FN would eliminate charities’ share of HHR revenue entirely, diverting it to the Education Trust Fund instead.
Critics argue these changes would devastate nonprofit funding while shifting more financial power to the state government.
“I am saddened, but not surprised, to see Democrats pushing legislation that takes money away from charities across the Granite State,” said Rep. Cyril Aures (R-Chichester). “HB 531-FN and HB 588-FN would throw over 800 New Hampshire charities under the bus. Instead, Democrats are taking their money to deposit it into the state’s pocketbook.”
Impact on Nonprofits
The legislation has drawn sharp opposition from organizations that rely on charitable gaming to sustain their programs.
The Aviation Museum of New Hampshire, which operates youth STEM programs including a high school airplane-building initiative, warned that HB 531 and HB 588 would threaten critical educational opportunities.
“A reduction in charitable gaming funds as anticipated by HB531 and HB588 would directly impact our programs intended to introduce youth to opportunities in STEM fields and particularly in aviation,” said Ray Chadwick, President of the Museum’s Board of Directors.
“The Aviation Museum and the high school students we assist are counting on a continuation of the charitable gaming revenue as currently structured.”
The Greater Nashua Chamber of Commerce, which represents over 450 businesses and 25% nonprofit organizations, also condemned the legislation, calling it a misrepresentation of the original intent of gaming funds.
“While funding education is undoubtedly important, the critical work and essential services provided by our nonprofits are equally vital to our communities,” wrote Wendy Hunt, Chamber President & CEO.
“Charitable gaming serves as a crucial financial resource for many of these organizations, and limiting the amount they can earn would significantly hinder their ability to carry out their missions.”
The Workforce Housing Coalition of the Greater Seacoast, which helps advocate for affordable housing solutions, warned that HB 588 could pose “insurmountable challenges” for its work in addressing New Hampshire’s housing crisis.
“This bill jeopardizes the future of our critically important efforts to promote workforce housing solutions in Greater Seacoast communities,” wrote Emily Ham, the coalition’s executive director.
“Affordable housing for our workforce has long been a critical issue in our state, particularly in the Seacoast region, where rising rents and limited housing supply have made it increasingly difficult for members of our workforce to find a place to call home.”bill (10)
A Direct Blow to Charitable Giving
Under current law, charitable gaming revenues help fund a wide range of causes, from education scholarships to community assistance programs. The Samantha C. Smith Foundation, which provides scholarships to students entering trade and medical fields, warned that cutting nonprofit funding would eliminate support for some of New Hampshire’s most vulnerable populations.
“Why would you want to disrupt a good thing by passing SB 104?” wrote Daniel A. Smith, President of the Foundation.
“SB 104 would allow for the unchecked proliferation of gaming in every home across New Hampshire, stuffing the pockets of out-of-state entities that run online gaming… at the expense of the New Hampshire non-profit community.”
Republican Response
Republican lawmakers have characterized the legislation as an example of excessive state control over private charitable efforts.
“Democrats constantly complain that charities do not have enough funding to cover their costs, yet here they are trying to take that funding away,” Aures said.
With HB 531-FN projected to redirect $18.6 million annually and HB 588-FN removing another $12.5 million from charities, conservatives warn that the move represents a broader effort to expand government control at the expense of private philanthropy.
“The Democratic principle of simply throwing more and more money into the state’s pocketbook does not solve any issues,” Aures added. “Charities are meant to help the people of New Hampshire. Rather than impede their work by taking their money away, we should be supporting their efforts to keep New Hampshire the best place to live, work, and raise a family.”
Next Steps
Both bills are scheduled for further committee hearings, with bipartisan debate expected to intensify. While supporters argue the changes are necessary to increase funding for public education, opponents maintain that the legislation would undermine decades of charitable gaming support that has helped sustain New Hampshire’s nonprofit sector.
As the fight over HB 531-FN and HB 588-FN continues, nonprofit leaders, business organizations, and community advocates are gearing up to urge lawmakers to reject the proposals and preserve the state’s charitable gaming structure.
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