Poker Operation Given Green Light

Milford, NH -- 35% of Proceeds Go to Charity

A proposed change of use plan, turning the former IGA Supermarket at Elm Street's Granite Town Plaza into a "charitable gaming" operation, received approval from the Milford Planning Board Tuesday night. The proposal by New Hampshire Charitable Gaming would create "The River," a poker hall featuring the popular Texas hold 'em poker games and tournaments. By state law, 35% of the proceeds of all games and tournaments (less prizes) must go to charity, and Jim Rafferty, the company's president, predicts that could result in $350,000 being distributed to area non-profit groups each year.

Although charitable gaming has been legal in New Hampshire for years in forms such as Monte Carlo nights, a 2006 change in state law allows charities to hire professional organizations to run the games for them. New Hampshire Charitable Gaming is essentially a professional organization in need of a dedicated location in which gaming can occur, and in need of charities wishing to hire it. By law, any charity can hold up to 10 events per year, so what the company needs to do is line up enough charitable organizations to run an event almost every day.

Rafferty told the planning board that the charitable gaming industry is "highly regulated," with state rules and statutes governing the hours of operation and how the money is handled. The sponsoring charity must have a representative on site at all times and must sign off on reports to the state. The maximum bet at any game is $2, with tournaments allowed to charge an entry fee of up to $250, though they typically range from $20 to $250. The New Hampshire Pari-Mutuel Commission, a 7-member panel appointed by the Governor and Executive Council, oversees enforcement of the state's gaming rules and regulations.

State law allows the facility to be open from 11 am to 1 am, except on Sundays, when the opening cannot be before noon. Rafferty said the heaviest traffic would occur Thursday and Friday evenings and on weekends. Though the establishment plans to serve food and drinks (beer and wine), Rafferty indicated that would not be the primary focus. "These people are here to play poker. They don't drink a lot." The company is proposing to have 25 poker tables, each seating up to 10 people.

Rafferty indicated he has spoken with Police Chief Fred Douglas on the proposal and the company planned to have a detail officer posted at the location during peak times. Otherwise, there did not seem to be a lot of security concerns. Town Planner Sarah Marchant told the planning board Chief Douglas had no reservations about the proposal and was confident he could work out an arrangement with Mr. Rafferty – a far different situation than a proposal last year to convert the space to a bar.

Rafferty also told the planning board his operation would not likely siphon existing revenue streams away from charities. "The players are not here to give money to charity," he said, they play because they like to play poker. Typically, 75% of the revenues from a tournament go to prizes for the top 3 finishers. Of the remaining 25%, at least 35% must go to the sponsoring charity, with the operator, in this case New Hampshire Charitable Gaming, keeping the balance. Rafferty gave an example of a typical tournament, with 10 players paying a $100 entry fee, for total revenues of $1,000. $750 of that would be set aside for prizes, and then the sponsoring charity would receive 35% of the remaining $250, or about $88. Although state law allows other types of gaming – such as roulette wheels – Rafferty said his focus was on poker games.

According to company projections, the operation would employ 82 people, in what Rafferty referred to as "benefited, high-wage jobs." Dealers, for instance, would be paid minimum wage, but would make about $20 an hour when tips are included, he claimed.

Though Rafferty says he would like The River to service Milford-based charities, he does not yet have any signed up. He does have some Nashua charities signed up from previous attempts to locate a similar facility in that city. He said he has calls in with local charities. "I'd like to fill all my remaining spots with Milford charities," he told the planning board.

During a public comment period, Norm and Polly Cote, of Dearborn Street, cautioned the board about the proposal, citing concerns about security and potentially lax state oversight. "If this board accepts the proposal, you're gonna be sorry," Norm Cote said.

Before approving the proposal, the planning board added a stipulation that the approval only applied to poker games and tournaments. If any other types of games are to be added then another visit to the planning board would be required. Board member Paul Amato proposed that stipulation because he wanted to "keep it on a relatively short rope." Any future proposed changes would allow the planning board to review the facility's operation to see if the assurances made were being adhered to.

This is at least the fourth attempt in the last two years to locate a business in the former Violette's IGA supermarket. Prior attempts have included a bar and a bowling alley. Violette's closed in 1995 and the space has been vacant since then.

By Peter Bragdon

News Added: 22 September, 2007

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