The owner of a charitable casino in New Hampshire is said to have underpaid nonprofits.
The embattled co-owner of New Hampshire's Concord Casino seems to be holding a larger share of the profits than the other twelve charity casinos in the state, as per a recent news report.
Andy Sanborn, casino owner and former New Hampshire senator from Bedford, didn't set aside the same percentage of profits for nonprofits as the other charity casinos in the state, according to New Hampshire Public Radio (NHPR).
Traditionally, charity casinos are required to hand over 35% of their earnings to New Hampshire nonprofits. NHPR's investigation, however, found that Concord Casino, owned by Sanborn, only contributed 17.5% of its earnings.
This disparity in distributions stems from the time when organizations hosting gaming events were allowed to charge fees called "rents." These are basically the fair rental value of the property for any use. The rent depends on the casino's overhead, which includes staffing, space leasing, supplies, and utilities.
Sanborn charges a daily rent of $750, while Nashua's Gate City Casino charges $250 per day, NHPR reported.
Despite the differing rent rates, the New Hampshire Lottery Commission approved Concord Casino's contribution percentage.
A lottery spokesperson told NHPR that no sanctions have been imposed on the casino because reducing revenue for the promoted charities would likely lead to remediation.
License Threatened
Sanborn's license to operate the Concord Casino is now at risk. Recent state and federal investigations have disclosed that Sanborn allegedly misappropriated a portion of the $844,000 in COVID relief loans he received to purchase sports cars, including two Porsche 987 Caymans for personal use and a Ferrari F430 as a gift for his wife.
Sanborn obtained the federal loan by providing allegedly false information on his application, omitting any mention of the casino. However, these loans were not meant for casinos, as per reports from the Concord Monitor.
New Hampshire Attorney General John M. Formella said both state and federal inquiries may lead to charges and administrative action.
In response to these accusations, Sanborn said, "Like many other businesses and organizations, we applied for federal relief to address the operational difficulties posed by the COVID-19 pandemic. We made sure to follow all application requirements and standards. While I strongly dispute the Commission's statements, I welcome the upcoming investigation, as I'm confident that our actions were completely transparent and in line with the law."
Earlier this month, Sanborn's wife, state Rep. Laurie Sanborn, R., stepped down as chair of the state committee on charitable casinos due to the controversy.
What's Next for Concord Casino
Concord Casino currently operates within The Draft Sports Bar and Grill in Concord. Sanborn has plans to open a second 43,000-square-foot charity casino elsewhere in Concord. The city's Planning Board approved the property in June, but it is currently embroiled in a legal conflict.
Former New Hampshire Representative Pat Abrami of Stratham commented on the situation, saying that the existing gaming regulations governing charity casinos should be examined. He is part of the commission, formerly headed by Laurie Sanborn, in charge of reviewing these regulations.
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Source: www.casino.org
