Special Bd. of Aldermen — 08/06/2019 Page 3
Alderman Klee
So | want to clarify that | made that statement that | thought it needed a second Board of Aldermen approval and
that may not be the case. | have two more other questions actually. One was the question was the amount
collected by the State, I’ve gone through everything and | remember the discussion in the State House. What
percentage or what fee, | know there is a fee for the licensing requirements and so on. But what is the fee that
the State will be taking from these organizations.
Mr. Mcintyre
So that is to be negotiated. The terms are under the RSA is to be the most beneficial financially to the State.
They submit first the technical aspects and then we negotiate financials and then that is approved by the
Governor Council. It is estimated for the purposes of budgeting that the second year of the budget will be $10
million dollars additional which goes to the Education Trust Fund which is by the terms of the Constitution, all of
our money goes. If we had a budget, | have to talk in terms of if we have a budget because the terms of the
budget which does not exist, the second year is an additional $10 million dollars which is sent to the cities and
towns by the formula for adequacy of which | think we are 18% of adequacy grants. So that gets bumped up
$10 million and that gets spread out by the formula, which we have nothing to do with.
Alderman Klee
Just one more question. This one is kind of more of a broad one and | may put you on the spot a little. Could
you explain the mobile sports wagering portion of this? And how that would affect ...
Mr. Mcintyre
Certainly this may come as a shock to you, but folks now use their phone to bid on sports. | say this as a former
organized crime prosecutor, who spent a lot of times when phones were bookmakers and the like capturing
wagering. So it was suggested to the Legislature at the time that the Bill was being debated that if mobile
wasn't part of it we would never recapture that which is an illegal market. Which is most of what we are trying to
do is not create a new gambling market. It’s more a transfer from an illegal market to a legal market and all the
consumer protections that come with it, right? Better as a complaint with a bet, they thought they won and they
didn’t win, what do they do now if it’s illegal? Call the Police? They are not going to enforce an illegal bet, but
versus now when you can come complain to me directly and if you don’t get satisfaction you can call the
Governor's Office.
So that’s why mobile was part of the Legislation. It is certainly the way folks wager currently by and large.
There is obviously no physical sports books. And really when the physical sports books which the Resolution
you folks are debating tonight is to create an entertainment environment as well. The Governor has impressed
upon me very directly that he wants sort of first class, high end, very nice facilities. This is not to be like the old
style R&V’s or if you know New York, off track betting was linoleum floors and the crappy lighting. No these are
all going to be very nice facilities across the State. So that’s the difference if that answers your question
Alderman.
