A really good day at the track or a high-stakes poker table became a little less lucrative for New Hampshire residents last week.

The state imposed a 10 percent gambling tax Wednesday, passed by lawmakers as part of the $11.5 billion budget, a budget packed with tax and fee increases.

The new tax won't apply to most winnings — unless a bettor or lottery player hits it really big.

The tax trigger varies, depending on how the money is won.

On any lottery winnings of $600 or more the state Lottery Commission will withhold 10 percent for the state, to go along with federal withholding, which is 25 percent of winnings of $5,000 or more.

Winnings on racetrack bets would only be applicable to the 10 percent withholding if the odds were 300 to 1 or greater, and were more than $5,000 in profit.

Winnings from poker and other table games only apply if the odds are 300 to 1 and the profit exceeds $30,000.

The state standards for the tax follow federal requirements for filing a W-2G form for gaming winnings, according to officials from the Department of Revenue Administration

The tax is expected to generate $5.9 million in revenue for the state in its first year and $7.9 million annually in future years, according to Rep. Marjorie Smith, D-Durham, who sponsored the legislation that includes the new tax.

Ed Callahan, president of Salem's Rockingham Park, said about $39,000 worth of winnings so far this year would meet the W-2G threshold, but he isn't sure how the money is supposed to be collected.

Initial impressions of the law left the state's racing commission believing it was responsible for collecting the tax at state racetracks and charitable gambling venues.

But that would be nearly impossible because the racing commission does not send representatives to oversee the racetracks and charitable gambling venues — and doesn't have the resources to do that, according to Sudhir Naik, the commission's deputy director.

Naik and other racing commission officials met with Department of Revenue officials on Wednesday. He said it was made clear during that meeting that the racing commission would not be responsible for collecting the tax. But, beyond that, it wasn't entirely clear how the money would be collected, he said.

"We are told that, under the language, the commission doesn't have responsibilities to collect," Naik said.

Callahan said the software for their ticket system won't be equipped to include the withholding for about two months.

The new tax is supposed to apply to New Hampshire residents who earn gambling winnings in other states. Kevin Clougherty, commissioner of the DRA, said it will be up to the individual to file those winnings with the state.

Both Smith and Clougherty acknowledged it may take a little time before the tax is properly implemented.

"There may have to be some rule making and some efforts to make sure it's known how it works," Clougherty said.

Smith said the state would make sure it is clear what all gambling venues are responsible for collecting.

"We deal in reality, not in theory," Smith said. "There will be some startup time on this. The details of how this will be administered are being worked out by the DRA and will include getting information out to everyone who has to be aware."

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