Gambling gets a boost

By TOM FAHEY State House Bureau Chief

CONCORD — Senate President Thomas Eaton said yesterday he supports passage of a bill to legalize video slot machine gambling at the state's four horse and dog-racing tracks to help fill the state's budget gap.

He said legalized slots could produce $200 million annually under a plan that Sen. Lou D'Allesandro, D-Manchester, proposed last year and is drafting again for this session. The system would be similar to Delaware's, where slots operate at racetracks.

EATON "I think we should give it serious consideration," said Eaton, R-Keene. "I think we have to take a very, very serious look at that this year." He told reporters that a tobacco tax increase was not part of his agenda for the coming legislative session.

Eaton said later that he has supported expanded gambling throughout his five-year Senate career. He said passage would be "very beneficial" to his area, which includes the Hinsdale greyhound track.

The bill won't have an easy road, Eaton said. "Any type of gaming bill is difficult," he said, adding, "This isn't my main issue or goal for this year."

He said he doesn't know how many Senate members are with him on the issue, but said there are not many options for the Legislature as it tries to fill a budget hole estimated at between $180 million and $300 million.

The bill will face a tough time in the House. Speaker of the House Douglas Scamman said he's always opposed gambling expansion and doesn't plan to change now.

He said he doesn't think the budget crisis is so severe that the state needs the kind of money video slots would produce.

D'Allesandro said his bill will allow the state's grand hotels, such as the Mount Washington Hotel, to host the video slot machines. Eaton said he prefers to hold off considering whether to allow slots in the hotels until tracks have operated the system for a while.

Voters would have to approve the placement of the machines in their communities in D'Allesandro's bill.

Eaton said he would support a system in which the state owns and operates the video slots.
He wants to see most of the money go toward education. State Police would get a supplement from the overall proceeds. Some money would go to the tracks, and to track towns, and toward gambling addiction treatment.

Eaton said he does not favor any other revenue package to help balance the state budget. He noted that sales and income taxes are off the table because Gov.-elect John Lynch has pledged to veto them.

A tobacco tax is one proposal that surfaces regularly, and is being proposed this year.
"That's not on our agenda," Eaton said.

Lynch favors a tobacco tax increase to fund a targeted education aid formula that would send extra money to the state's least wealthy school districts.

Eaton said he discussed gambling briefly with Lynch and with Scamman just before Christmas. Neither one gave him a tremendous amount of feedback, he said.

Lynch was traveling with family yesterday. He has not said he'd veto a gambling bill, but has not endorsed one either.

Lynch spokesman Pamela Walsh yesterday repeated Lynch's campaign position on gambling: "Gov.-elect Lynch would have to see convincing evidence that it could be done without harming New Hampshire's quality of life."

Scamman, R-Stratham, was clear yesterday that he opposes the idea.

"I don't support any expansion of gambling. I never have and I don't plan to now," he said. "I think it's a quality of life issue. It takes money away from other business and from families. I know you can't protect people from everything, but you don't have to put it in their backyard and tease them with it."

Scamman has said since he was elected as speaker on Dec. 1 that he doesn't think the state needs extra money.

"I plan to put my work toward balancing the budget without any new revenue," he said.
He said Lynch has said he'll bring in a balanced budget, so he doesn't think the state will face a worst-case scenario of a $300 million hole. He also doesn't think the state will have to slash basic services.

"I've worked on budgets my whole life. There is always a way to reduce the budget and still deliver services," Scamman said.