New Hampshire regulators halt sale of casino

New Hampshire’s Attorney General’s Office announced on 8 November that it will not approve the sale of Andy Sanborn’s Concord Casino to a new owner, effectively shutting it down permanently.

This decision means charitable gaming will not resume at the venue, stalling Sanborn’s efforts to divest from the project. The state’s refusal to greenlight the sale comes amid mounting legal issues facing Sanborn, who has been accused of misappropriating $844,000 in Covid-19 aid intended for small businesses.

This marks a critical juncture in a nearly two-year battle between Sanborn and state regulators. The state ordered him to close his casino in December 2022 following the alleged misuse of federal funds during the pandemic.

As part of the order, Sanborn was given limited time to find a buyer for the business, with deadlines that have since been extended several times. But with the Attorney General’s latest decision, that deadline may soon close without resolution.

Sanborn’s legal team argues that the state is attempting to obstruct the sale, discouraging potential buyers from stepping in. At an 8 November hearing, Sanborn’s attorneys suggested that while there are no public allegations against the buyer, the state’s concerns about the transaction have dissuaded multiple parties from expressing interest in purchasing the casino.

Attorney Adam Katz, representing Sanborn, contended that the state’s actions appear aimed at preventing his client from selling rather than addressing any specific concerns about the buyer’s suitability. “The state is manipulating this case to keep Mr. Sanborn from a fair sale,” Katz said.

Compounding Sanborn’s struggles are felony theft charges filed against him and his casino, adding further hurdles to his plans to exit the business. Both Sanborn’s attorneys and the Attorney General’s Office declined to provide details regarding the specifics of these charges, and the licensing deliberations remain confidential.

A time for change

New Hampshire’s focus on gaming laws and practices has attracted greater scrutiny, leading some lawmakers to advocate for legislative changes that could reshape the state’s casino industry. Among other discussions, there is renewed debate about introducing slot machines to the state’s gaming halls.

Senator Tim Lang, a member of the state’s gaming committee, argued slots could provide a lucrative new revenue stream for both the state and local charities. The industry, he said, is already equipped to support similar devices like historical horse racing (HHR) machines, making the expansion simple.

In contrast to traditional slot machines, HHR machines let players place bets on past horse races using a pari-mutuel betting system. This form of wagering pits players against each other rather than against the house, with a minimum five-second delay between plays.

The relatively slower pace of HHR machines has allowed them to operate legally in the state without conflicting with existing gaming laws. If slots are introduced, they could offer a more familiar casino experience, potentially attracting new patrons and generating additional revenue.

iGaming still on the table

Alongside this conversation, interest in expanding the state’s gambling options has broadened to include iGaming. Last year, lawmakers, including Sen. Lang, considered a bill that would have legalised online poker and other forms of online-based gambling, with the intent of directing proceeds to fund community college scholarships.

While the measure failed to advance past committee, its backers remain undeterred. Senator Lang, who sponsored the initial legislation, is expected to reintroduce the bill with modifications designed to allow online poker to coexist alongside the state’s numerous charitable gaming operations.

Lang has argued that iGaming, if properly regulated, could coexist with brick-and-mortar casinos while creating new opportunities for players and generating fresh revenue for the state.

The renewed attention on Sanborn’s case has underscored the need for a comprehensive review of New Hampshire’s gaming laws, especially as more states across the US adopt online gaming and sports betting. While New Hampshire has already seen substantial revenue from sports betting, online poker and other iGaming options could add new dimensions to the state’s gaming ecosystem.

In light of Sanborn’s case and the evolving industry, New Hampshire appears to be exploring a new chapter in gaming regulation. Whether through the approval of slot machines or the eventual legalisation of online poker, the state’s gaming market could soon become more expansive and accessible.

As for Sanborn, his future in gaming remains uncertain. If the Attorney General’s stance prevails, he could face permanent exclusion from the industry, closing a chapter on one of the state’s more controversial gaming figures.