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The state would tax the growing charitable poker industry under a tentative deal cut by Senate and House negotiators yesterday. The deal also doubled the size of the maximum bet at such games, from $2 to $4.

The so-called poker tax, of 10 percent per chip, is expected to bring the state $2 million a year, according to state estimates. The proposed bill also steps up enforcement, providing for three new auditors and one supervisor at the Pari-Mutuel Commission to oversee the growing poker rooms, where a cut of every pot goes to charity.

Gov. John Lynch has thrown his support behind the tax as one step toward closing the expected $200 million budget deficit.

Charities would maintain their cut of the take; the state's share comes from the operators. "Charities are protected better than the state," said Paul Kelley, Pari-Mutuel Commission director.

The bill may be difficult to pass in the House, where members have historically been wary about bigger bets. House members had been cautious to increase maximum chip value, which the Senate had originally set at $5. Game operators said they'd need more valuable chips to retain profitability when the new tax comes in.

The deal was struck after Rep. Ken Hawkins was removed from the committee by House Speaker Terie Norelli. Hawkins said he predicted from the beginning that he would be taken off the committee because he would not back larger-denomination chips, new jobs or a new tax. He was already planning to fight the bill on the floor of the House.

"Our argument on the floor is going to be: This is increased gambling," said Hawkins, a Bedford Republican.

On the countering side, House members emphasized that the bill would step up state oversight of the growing poker rooms, which bring in more than $50 million a year.

"We have little to no oversight now," said Rep. William Hatch, a Gorham Democrat and one of the members of the conference committee that hammered out the bill.

The deal gives 10 percent of every chip to the state in games where chips have dollar value; in tournament games where players pay an entrance fee, the state would take 3 percent of the "rake," or house winnings. The total size of the prize pot is capped at 80 percent of the amount collected from players at such tournament games.

Written by Lauren R. Dorgan

concordmonitor.com