Aug. 25—CONCORD — Fueled by massive jackpots and the growing popularity of sports betting, the New Hampshire Lottery last year shattered all-time records in sales and net income, which supports state aid to public schools.
Total lottery sales were $518 million for the ending last June 30, an increase of $126 million or 32% from the previous high the state hit a year ago.
Net profits from all lottery games were $142 million, up $36.5 million or 34% from the previous high of $106 million.
"We have become the model for other states around the country," Gov. Chris Sununu said during an interview Wednesday.
Lottery Executive Director Charles McIntyre said that during the COVID-19 pandemic many people were drawn to lottery games and sports betting as other a forms of entertainment shut down.
McIntyre said much of the growth in the state's new lottery offerings was driven by a shift of dollars from other forms of gambling.
"A lot of what we have done is really repatriated dollars from gambling that was already in the system. When we created Keno, we were really capturing revenue that had been played at games in Massachusetts," McIntyre said.
"When you think about it, so much of sports betting revenue really is bets that had been placed on the illegal black market and also betting in off-shore accounts."
This past budget year was the first full one for sports betting, which the state launched on Dec. 30, 2019.
Legislative budget writers expected it would bring in $10 million of profit. Net income was $18 million, with more profit potential as many professional and college sports seasons return to normal schedules, McIntyre said.
"At one point early on during the pandemic, the biggest source of sports betting we were getting was on soccer games in Africa and table tennis tournaments," McIntyre said.
Third-most bets per capita
The total value of sports bets placed here was $520 million last year. DraftKings, the state's exclusive vendor for sports betting, pays the state a percentage based on the type of wager.
New Hampshire had the third-most sports bets per capita among states that offer wagering, behind Rhode Island and Delaware, McIntyre said.
About 85% of sport bets came from the 56,000 people who have created New Hampshire betting accounts online.
The rest are made in person at the state's two sports book outlets in Seabrook and Manchester.
Some industry analysts questioned New Hampshire's decision to give all the sports betting business to DraftKings.
McIntyre said these results confirm the state made the right call.
"The single-vendor model allowed us to limit the amount of advertising we do in the state. If you look at states like Pennsylvania and New Jersey, there are literally ads running 24/7 as companies compete against one another, all chasing a finite dollar," McIntyre said.
"We think we've got a system that's responsible and produces maximum revenue."
DraftKings created a corporate office in Nashua with 20 employees.
According to the lottery's own estimate, about half of sports bets are made by Massachusetts residents coming across the border.
"You wouldn't believe the volume we see from people coming into the parking lots at the state liquor store and the Pheasant Lane Mall in Nashua right near the Mass. line," McIntyre said.
Three more sports books
The lottery is in the midst of negotiations to increase the number of sports book locations — one more on the Seacoast, another in the Nashua area and a third also along the Massachusetts border, McIntyre said.
The Massachusetts Legislature in 2021 has seriously considered legalizing sports betting but has yet to find consensus among more than 15 different bills.
McIntyre said he's confident much of New Hampshire's income from northern Massachusetts residents will hold.
"If you're north of the Route 128 corridor, would you rather drive to Boston or to Nashua or Seabrook to place a bet?" McIntyre said. "Don't forget, you're also paying an income tax if you win a future sports bet in the Bay State, but of course, not here."
Sununu said there will be intense pressure in Massachusetts for lawmakers to limit sports betting locations to the expensive casinos in Everett and Springfield, which have dealt with massive drops in revenue during the pandemic.
"We really did hit the timing right when we went with sports betting, and I think we learned from the mistakes or practices that other states had taken," Sununu said.
"Sure, at the end of the day, all states may ultimately go with sports betting, but we believe we've got a winning formula here."
Jackpots from Powerball and Mega Millions together reached a combined $1.58 billion last January.
As a result, Mega Millions sales were up 54% and Powerball sales were up 36%. Those two games bring in the biggest profits of all lottery offerings, McIntyre said.
"We've got 1,200 terminals across the state and at the height of those big drawings, we will do $20,000 to $30,000 a minute," McIntyre said. "It's only limited by how fast people can punch in those keys."
Earlier this week, Powerball added a Monday drawing to its Wednesday and Saturday games.
McIntyre said the lottery continues to receive applications for more bars and restaurants to offer Keno, as well as inquiries from officials in some cities and towns where voters previously turned down the game.
Total Keno sales in New Hampshire were up 65% from last year.
klandrigan@unionleader.com
