CONCORD — The New Hampshire Lottery is asking the Executive Council and Gov. Chris Sununu on Monday to endorse long-term contracts with exclusive vendors for sports betting after negotiations yielded some key changes.
Fantasy sports betting giant DraftKings and computer technology leader Intralot won the initial competition to provide sports-betting services in New Hampshire, with initial bets coming as soon as January.
The two were chosen from among 13 competitors.
DraftKings, through its Crown Gaming name, scored highest in the mobile and retail competitions while Intralot edged out DraftKings and three other bidders for the sports-betting business that will be done on lottery terminals.
The proposed contract with DraftKings would be for six years, with two contract extensions permitted of two years each.
Intralot has already been a technology vendor with the lottery; this agreement would merely amend the existing contract that runs through 2025, lottery officials said.
The state law Sununu signed last spring legalizing sports betting allowed for multiple “agents” to serve as vendors for the program.
But Lottery Executive Director Charles McIntyre said DraftKings made such a lucrative offer to the state as the exclusive vendor that the selection committee decided it couldn’t refuse it.
“The selection committee made this determination based on DraftKings superior mobile application, first-class sports betting platform, its strong market brand and player base in New Hampshire, overall commitment to the New Hampshire market and evidence of success in both the retail and mobile implementations in other states,” McIntyre told the council.
“Additionally, DraftKings price proposal as a sole provider of the mobile and retail channel delivered more than three (3) times the percentage of revenue to the state than would be derived from a multiple agent market.”
To be the exclusive mobile provider, DraftKings said it would give the state 51 percent of its gross gaming revenues. If the state were to choose three vendors, DraftKings would lower that share to 21 percent.
For the retail business, DraftKings said it would give the state 40 percent of gross revenue for up to 10 retail sports books.
Intralot will provide New Hampshire with 19.25 percent of its gross revenue from sales at lottery terminals across the state.
But the proposed contract does have some caveats to that exclusive relationship with DraftKings.
For example, it requires the state to spend each year at least $250,000 of lottery dollars to promote and market the game.
In addition, it allows DraftKings to spend up to 15 percent of gross gaming money on promotional deals such as free tickets, rebates or bonuses paid to frequent betters. These so-called “promotional payments” would not be counted in the pool of gross gaming revenue that the state receives its money from.
The four-person selection committee that negotiated the contracts — which total more than 300 pages — was made up of lottery officials, Executive Director McIntyre, Online Games Manager Katie Brown, Data and Product Manager Jay Lu and Chief Compliance Officer John Conforti.
The law also breaks down sports betting into three tiers: pre-game bets on a single event; in-game wagers; and all other types of bets, such as a wager on whether the quarterback will run for a touchdown.
Mobile outlets can provide all three. Brick-and-mortar sportsbooks will not be allowed to offer in-game betting, while the lottery outlets will not offer single-game or in-game betting options.
You must be physically inside the state to place a sports bet with this program.
Players can bet on any professional or collegiate game available to them but cannot bet on college games involving New Hampshire teams.
Voters in five cities earlier this month approved becoming the site for sports books: Manchester, Berlin, Claremont, Laconia and Rochester.
Franklin voters approved the games in their city last October.
Voters in towns can consider their own warrant articles to become part of these games at their next town meetings in March.
State lottery officials have said they want to get the games up and running in New Hampshire in time for the NFL playoffs in January.