New Hampshire in Contract Negotiations with DraftKings and Intralot for Sports Betting Services

  • DraftKings scored highest among retail and mobile sports betting license applicants
  • Aims to give state 50% of gross gaming revenue if it gets both retail and mobile license
  • Intralot was the best-scoring contender for lottery products
  • Lottery provider willing to contribute 19.25% of gross revenue for lottery license
man's hands holding up tablet showing sports betting app
New Hampshire is in contract negotiations with DrakftKings and Intralot over the provision of sportsbook and lottery services in the state. [Image: Shutterstock.com]

Negotiations initiated to determine suitable providers

The New Hampshire Lottery Commission is in contract negotiations with Intralot and DraftKings to provide sports betting services in the region. 

The commission released a statement on the developments on Tuesday. The DraftKings proposal got the highest score out of all the online and retail sportsbook applicants. Intralot scored the best for lottery product applicants. 

sports betting will be open for business before the current NFL season ends

As per the statement, a decision on the final awarding of these contracts will be made around November 20. Governor Chris Sununu previously said the expectations are that sports betting will be open for business before the current NFL season ends in February 2020. 

A competitive application process

13 applicants put in their name during the application process for the sportsbook contracts, which opened at the beginning of August. These included Roar Digital, a joint venture between GVC Holdings and MGM Resorts International, and Kambi. 

There were just four applicants for the lottery contract. Intralot was the only operator to be asked for a pricing model. The operator is already the provider of lottery products in Idaho, Illinois, and Washington, D.C. 

DraftKings stands out from the other mobile applicants

DraftKings’ pricing model was by far the best one received by the New Hampshire Lottery Commission. While most states set their own tax rates for sports betting, New Hampshire decided to have operators send a price proposal. 

51% of gross sports betting revenue going to the New Hampshire government if it was the sole mobile operator

The mobile-pricing model proposal from DraftKings would see 51% of gross sports betting revenue going to the New Hampshire government if it was the sole mobile operator. In comparison, Roar was offering a 20% cut.

If there are a number of online sports betting licenses handed out, DraftKings will lower its state contribution. It will drop to 21% if as many as three other vendors are chosen, and go down to 16% should up to five operators be selected. 

As per the sports betting legalization legislation, there can be a max of five mobile sports betting licenses handed out in New Hampshire. 

Retail pricing model proposals

In terms of the retail offering, DraftKings is offering to contribute 40% of gross revenues if there are up to ten retail sportsbooks. If the company successfully obtains a retail and a mobile contract, it will contribute 50% of all its sports betting revenues. Intralot would contribute 19.25% of gross gaming revenues from lottery terminal sales. 

There is not yet any indication as to where the retail sportsbooks will be located. A referendum on the matter is set to take place in the coming week.

Nine cities in the state will have a vote on whether or not they want to have retail sportsbooks in their jurisdiction. Voters in Franklin have already given the green light for a retail sportsbook in the city. There will be a similar voting process in smaller towns that will take place in spring 2020. Currently, there is a cap of ten retail sports betting locations in New Hampshire.

Potential for sports betting in New Hampshire

A small state with fewer than 1.4 million residents, New Hampshire is very close to Boston, which has over 4 million residents. Officials in New Hampshire believe a large number of Massachusetts residents will cross the border to place sports bets, as their state is yet to legalize sports betting. 

DraftKings is happy to be the standout operator in the application process. It beat off competitors such as BetAmerica and William Hill to secure both a mobile and retail contract. 

A spokesperson for the company said of the new partnership: “We look forward to soon providing sports fans in the Granite State with our best-in-class mobile and online Sportsbook product and welcoming them into our dynamic retail sportsbooks.”