D’Allesandro says video gambling effective, safe state revenue for New Hampshire

Rebecca Mahoney

Thursday, May 4, 2000 | 2:26 a.m.

CONCORD, N.H. - Supporters of expanded gambling are promoting what they say is a safe and sound solution to the education funding crisis.

At a news conference Wednesday, Sen. Lou D'Allesandro said video gambling at race tracks and two grand hotels would increase state revenues without new taxes. A Senate-passed gambling bill come before the House on Thursday.

The Manchester Demcrat called expanded gambling an ideal solution to the state's budget shortfall, caused by its new school-funding law.

"It's an effective revenue source," he said.

The Senate passed the bill last month. It would raise an estimated $198 million, cut the new state property tax from $6.60 to $6 per $1,000 of assessed value and abolish the 18 percent inheritance tax.

D'Allesandro also said video gambling would strengthen tourism and free up two other revenue sources for general spending: $40 million in tobacco settlement money and $7 million in rental car taxes.

Opponents say video gambling is the most addictive form of gambling. They say it will increase domestic violence, theft, embezzlement, child abuse and suicide, and that people who gamble most are those who can least afford it.

But D'Allesandro said the state would exercise strict control.

"We know gambling does exist. It's existed for a long time. If we have it in a strict, well-enforced fashion, it's something people like to do and can be handled," he said.

Republican Sen. Fred King of Colebrook said gambling opponents are in denial about the budget problem. An income tax or raising the state property tax to $9.50 per $1,000 might be the only other solutions, he said.

Thirty-eight states have video gambling. D'Allesandro said the New Hampshire bill is based on a Delaware law.

The Senate passed the bill even though the House said it would not consider any gambling bills until next year at the earliest. It will take a two-thirds majority Thursday for the House to consider it.