The Concord Casino, a charitable gaming venue owned by former state senator Andy Sanborn, is up for sale after being ordered by state officials to close down and find a new buyer. The casino, which was accused of fraudulently obtaining and misusing federal COVID relief funds, has been suspended from operating for at least six months. The sale of the casino could attract interest from national gaming operators, who have been expanding their presence in New Hampshire’s historic horse racing market.
Concord Casino Ordered to Sell After Fraud Allegations
The Concord Casino, located inside The Draft Sports Bar and Grill in Concord, was one of the 14 venues in New Hampshire that had a license to offer historic horse racing (HHR) machines, a game that resembles slot machines but is based on the outcome of past horse races. HHR machines have been a lucrative source of revenue for casino owners, charities, and the state since they were legalized in 2021.
However, the casino’s future was jeopardized when its owner, Andy Sanborn, a former Republican state senator, and his wife, state Rep. Laurie Sanborn, were accused of improperly applying for and spending money from a federal COVID relief loan. The Sanborns allegedly used some of the $844K loan on a Ferrari and two Porsche race cars that were earmarked for personal use. Other funds were spent on what was described as rent. The Sanborns failed to say in the loan application they owned a casino. Casinos were not eligible for COVID relief loans.
The New Hampshire Lottery Commission, which oversees the gaming industry, recommended revoking the casino’s license indefinitely. However, a hearing officer from the Department of Safety issued a less severe ruling in December 2023, ordering the casino to close on Monday and not reopen for at least six months under a new owner. If Sanborn fails to sell the casino, he will lose his license for two years. The new buyer must also be approved by the Lottery Commission before the sale is finalized.
Sanborn has not commented on the ruling, but his lawyer has challenged the allegations and the investigation. Sanborn has 15 days to appeal the decision to the Lottery Commission.
New Hampshire’s Gaming Market Attracts National Operators
The sale of the Concord Casino could spark a bidding war among national gaming operators, who have been buying and investing in New Hampshire’s casinos in recent years. The state has capped the number of HHR licenses at 14 until July 2024, but lawmakers are considering extending that limit by seven years or indefinitely, under competing Senate bills. Both bills would also allow up to 19 licenses to accommodate the five companies that have HHR license applications pending.
In the last 14 months, Chicago gaming entrepreneur Greg Carlin has bought two New Hampshire casinos, Ocean Gaming Casino in Hampton and a second casino in Rochester, and is spending $25 million to refurbish and expand them. Carlin said he was attracted by the HHR law, which allows casino owners to keep 75% of the revenue from the machines, compared to 55% from table games. In December 2023, HHR machines generated $8.8 million for casino owners, versus $2.15 million from table games.
Other national gaming companies that have entered or expanded in New Hampshire’s gaming market include Churchill Downs, Delaware North, and Penn National Gaming. These companies have the financial resources and expertise to operate and market HHR machines, which can cost $20,000 each. They have also taken over the existing charitable gaming model, which requires casinos to donate 35% of their revenue to local nonprofits.
Some local casino owners have welcomed the influx of national operators, saying they have improved the quality and reputation of the industry. Others have expressed concern about the loss of local control and the potential impact on the charities that rely on gaming revenue.
Concord Casino’s Second Location Remains in Limbo
While the fate of the Concord Casino at The Draft Sports Bar and Grill is uncertain, the Sanborns are also in the process of opening a second casino location in Concord, at the former site of the Steeplegate Mall. The city approved the plan for a large-scale casino gambling site in June 2023, as part of a redevelopment project for the mall.
The second casino location, which would also offer HHR machines, is expected to create 200 jobs and generate $3 million in annual revenue for the city and the state. However, it is unclear whether the legal troubles of the Sanborns will affect the progress of the project, or whether they will have to sell or transfer their license to another operator.
The second casino location is also facing opposition from some residents and community groups, who have raised concerns about the social and environmental impacts of gambling, such as addiction, crime, traffic, and noise. They have also questioned the transparency and accountability of the charitable gaming model, and the role of the Lottery Commission in regulating the industry.
