Lebanon
The council voted, 7-2, against a measure that would have left voters to decide the fate of New Hampshire’s newest gambling game, effectively killing its chances of expanding to Lebanon.
Councilors Karen Liot Hill and Bruce Bronner voted for the ballot measure, arguing voters should have a say in the matter.
Mayor Sue Prentiss and Assistant Mayor Tim McNamara were joined by councilors Clifton Below, Erling Heistad, Sarah Welsch, Jim Winny and Shane Smith in voting it down.
“We’re elected to be leaders and hopefully we can stand up and be leaders and representatives to those people we were elected by,” Heistad said shortly before the vote.
Lebanon is now the second New Hampshire community that has declined to place keno on its ballot, following the city of Portsmouth.
So far, 11 towns and cities across New Hampshire have voted on the issue, with seven — including Claremont — choosing to offer keno.
“I feel it’s a setup from the legislature. It’s an easy way out to say, ‘Let’s get some money from something that’s voluntary,’ ” said Below, a former Democratic state senator.
Money from the game is earmarked to fund full-day kindergarten programs in New Hampshire, under a law signed last year. Officials estimate $8.4 million in first-year revenue from keno will go toward an education trust fund for the school programs.
The state currently provides about $1,800 per kindergarten student to school districts, but proceeds from keno are expected to increase that to $2,900 in 2019. As the game brings in more money, the state predicts payments will gradually rise to a total of $3,561 per student.
But Below and other councilors expressed concern that keno could cause trouble for problem gamblers, while offering few resources to help.
The law that enables keno calls for 1 percent of its proceeds to be spent to support “research, prevention, intervention and treatment services for problem gamblers.” The state Lottery Commission also donates $25,000 annually to the New Hampshire Council on Problem Gambling.
Below said those efforts likely won’t be enough for those in need of services. He recalled working on legislation that would have earmarked 5 percent of the state’s liquor proceeds for treatment of alcohol addiction.
It passed, Below said, adding the state dedicated those funds to treatment only once.
His opposition to the game was bolstered by Welsch, who shared her own story of addiction to eBay, an online auction site.
She started casually bidding on the site in October, but quickly developed a pattern of aggressively competing on and checking the site.
“Why would I throw $1,000 away in the space of five weeks? Because I got addicted to winning,” Welsch said. “I have a highly addictive personality who got caught up in winning the gambling that is eBay underneath the purchases.”
Either a Town Meeting vote or city ballot question is required before a community can begin offering keno, under the state law that established the game. Communities don’t have to offer keno to receive education funding, however.
Liot Hill said she personally is opposed to expanded gambling but argued the people of Lebanon should be allowed to weigh in.
“It’s not for me to decide on their behalf,” she said. “Let us respect the democratic process laid out by the New Hampshire legislature and send this to voters in March.”
Liot Hill also took aim at lawmakers, who she blamed for putting the council in a difficult position.
“Voters should not be asked to choose between two vulnerable groups,” she said, referencing a choice between potential addicts and kindergartners.
Bronner also said he wanted to give residents a choice “in spite of the fact that this is a shameful stick and carrot approach to getting gambling into the state.”
Councilors all said they were overwhelmed with calls and emails opposing keno, but at least one group spoke in favor of allowing it on the ballot.
Members of the American Legion Post 22 have said their organization might be open to offering the game and using the proceeds for the club’s charity efforts.
“Let the people decide if they want it,” said Peter St. Pierre, the club’s manager. “We believe it’s a win-win for the community and the kids.”
Lebanon currently has 12 establishments that could offer keno, which can only be played in restaurants and bars with a liquor license, the Lottery’s executive director, Charlie McIntyre, said in October.
Participating businesses pay a $500 annual licensing fee and in turn are allowed to keep 8 percent of the proceeds.
However, lottery officials believe only a handful of locations would be open to participation in the city, which is enough to meet the potential demand from neighboring Vermonters.
While the City Council’s decision on Wednesday cut off one avenue for a keno question to be included on the ballot, residents do have another avenue.
Five percent of registered voters in Lebanon can submit a petition requesting a keno question, McIntyre said on Wednesday. However, that option hasn’t yet been used in other communities.
Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.