Sanborn appeals gaming licence revocation

In an anticipated move, Concord Casino owner Andy Sanborn has officially filed an appeal against the revocation of his New Hampshire gaming license, marking the latest development in a complex legal saga.

As reported by the Concord Monitor on December 16, Sanborn’s appeal was lodged with the Merrimack County Superior Court. His legal team had previously signaled their intention to challenge the state’s license denial following its disapproval of a potential sale in late November.

The prospective buyer, whose identity remains undisclosed, was engaged in negotiations for several months, prompting the state to extend previous deadlines. Both the New Hampshire Lottery Commission and the Attorney General’s Office conducted thorough suitability reviews concerning the buyer. Initially, the state’s rejection was attributed to concerns regarding the buyer, but subsequent clarifications pointed to complications surrounding the structure of the sale itself. Sanborn’s attorneys argue that the buyer collaborated with state officials to address these issues, yet their efforts were ultimately unsuccessful.

Sanborn’s appeal asserts that the state engaged in “intimidation tactics” against potential buyers, allegedly delaying the process to exhaust the revocation deadline. These claims are particularly concerning given Sanborn’s precarious legal standing; under state law, individuals or entities with felony convictions cannot hold a gaming license for ten years. The appeal contends that state officials indicated to prospective buyers that they could face criminal liability, effectively jeopardizing the sale.

This month, discussions reportedly took place between Bettor Investments Inc. and Full House Resorts regarding the gaming license, although it remains unclear if either entity was the buyer whose proposal was ultimately rejected.

Escalating Legal Dispute

This appeal represents the culmination of a protracted conflict that has unfolded over the past year, beginning with the Attorney General John Formella’s August declaration of Sanborn as unsuitable for licensure. Sanborn faces allegations of misappropriating $844,000 (£660,846/€803,192) in pandemic relief funds intended for the casino; however, he has not yet been formally charged in this matter.

While Formella’s office initially sought complete revocation of Sanborn’s gaming license, the request fell short. Nonetheless, Concord Casino was closed in December 2022, setting a sale deadline for June 2024. This deadline was subsequently pushed back twice, but by late November, all extensions had expired. Sanborn’s gaming license, a critical asset to the business’s value, has now been revoked for a minimum of two years.

A pivotal moment in this ongoing saga occurred in mid-October, when Sanborn was arrested on new fraud charges. These charges relate to allegations that he misrepresented the casino’s gross receipts to obtain additional relief funds, casting doubt on whether his legal troubles would transfer to any potential buyers. This uncertainty has been cited as a significant factor contributing to the collapse of negotiations.

Sanborn and his legal team assert that the state has relentlessly obstructed efforts to facilitate a sale, claiming this to be a form of retribution following the initial non-revocation of his license. Conversely, state officials argue that Sanborn has exploited numerous deadline extensions to maximize his profit, undermining the regulatory process intended to penalize him for his actions.

As the legal battle continues, industry stakeholders will closely watch its developments, particularly regarding the implications for gaming regulation and oversight in New Hampshire and beyond. Issues surrounding licensing, buyer suitability, and the integrity of financial operations remain central to the ongoing discourse. This case exemplifies the intricate dynamics at play in the gambling industry, where legal and operational intricacies can profoundly impact the landscape.