Salem track: Poker tax will hurt charities Lynch, GOP candidate on opposite sides

SALEM — The host of the largest poker room in the state says if the New Hampshire Senate passes a 10 percent tax on Texas Hold 'Em tournaments, it will cut into the money now raised for charities and nonprofits.

It could also drive out Texas Hold 'Em players who now come to the state's tracks, said Ed Callahan, general manager of Rockingham Park in Salem.

Tomorrow, the Senate Ways and Means Committee is expected to consider the bill, which was amended last week to include the 10 percent tax.

Gov. John Lynch said he supports the bill.

"He thinks it makes sense," said Colin Manning, the governor's press secretary. "There's such fees for bingo and Lucky 7."

Sen. Joe Kenney, R-Wakefield, who is running for governor, said Lynch's support for the bill is an endorsement of a new tax.

"If you want to present it as a 1 or 2 percent fee to cover costs (to the state), that's justifiable," Kenney said. "When you increase it to 10 percent, it's a tax. It's that simple."

Sen. Robert Odell, R-Lempster, proposed the 10 percent tax. He could not be reached for comment.

Supporters of the proposal say it could mean an estimated $5 million to $10 million for state coffers. Some of that money would be used to hire employees for the Pari-Mutuel Commission, which oversees the card games. The state spends approximately $300,000 a year investigating gambling-related concerns.

Sen. Mike Downing, R-Salem, said the tax would only hurt charities and do little to help state budget deficits.

"I don't think it's a good idea, taxing charitable games," Downing said. "There's 35 organizations or so in Salem that made over $1.3 million last year. If you're going to start taking money from them, who is going to make it up?"

In 2008, charities are expected to reap about $3 million from poker games at Rockingham Park, according to Callahan.

Rockingham Park makes $2,000 a day renting 15,000 to 20,000 square feet for New Hampshire's largest poker room. It's the only cut in the profits the racetrack sees from the poker games, Callahan said.

Aside from the profits, the card games bring hundreds of people to the Salem racetrack who might not otherwise come. Once they're there, some of them might bet on horse races, play bingo or buy food, according to Callahan.

He said 82.6 percent of the money raised from charity poker games goes into prizes. The remaining 17.4 percent goes to the charity. But the charity winds up with just 35 percent of that 17.4 percent, he said, with the rest going to the cost of putting on the game.

"The state can get the money, but then there isn't 10 cents left to buy a chair or pay for a dealer or sweep the floor," Callahan said.

He said he isn't opposed to having poker companies help pay for enforcement costs. He said when the charity bingo law was amended a couple of years ago to include poker games, it originally proposed a 1 percent tax to help with oversight. He said he would be open to a smaller fee, but 10 percent is too much.

Sen. Robert Letourneau, R-Derry, a gambling opponent, said he has yet to review the bill, but said he doesn't have a problem taxing poker games. But he would oppose adding personnel to the Pari-Mutuel Commission.

News Added: 28 April, 2008

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