The New Mexico Health Care Authority (HCA) and the New Mexico Gaming Control Board (GCB) are in the early stages of establishing a data-sharing agreement. Under it, the Gaming Control Board would be able to determine whether recipients of the Supplemental Nutrition Assistance Program (SNAP) have collected substantial winnings from slot machines, which could result in them losing these benefits.
State Preparing a New Data Sharing Agreement
The collection of gambling data is part of a broader effort by the state to move away from the COVID-19-era practice of allowing SNAP recipients to self-attest to their income and household size. According to Niki Kozlowski, director of the New Mexico Health Care Authority’s Income Support Division, the practice has contributed to payment errors.
State officials are working to reduce those errors and avoid a potentially significant federal penalty. New Mexico’s SNAP payment error rate, defined as overpayments or underpayments to recipients, stands at 16.8%, the third-highest in the nation. According to the latest US Department of Agriculture data, this places the state just behind Alaska and Washington, D.C.
If the state fails to reduce its error rate below 6% by October 2027, it could be required to repay up to 15% of its statewide SNAP benefits. Analysts with the Legislative Finance Committee estimate that the penalty could total about $173 million.
HCA Secretary Kari Armijo told members of the Legislative Finance Committee during a hearing in mid-June that a substantial slot machine win could render a SNAP recipient ineligible for benefits. Such a win is defined under federal regulations as $4,500 or more.
Where Will the GCB Source Data From?
Michelle Pato, the Gaming Control Board’s lead attorney, said that the data collection will be limited to racetrack casinos and roughly 50 veterans’ and fraternal organizations, such as Elks Lodges and American Legion. These are authorized to operate up to 15 slot machines.
Tribal casinos will not be included in the data-sharing agreement because they are not subject to the federal Farm Bill provision governing the reporting requirement. Kozlowski said the organization would need to negotiate separate data-sharing agreements with each New Mexico tribe and pueblo that operates a casino. Doing so could also require reopening the state’s tribal gaming compacts to authorize such agreements legally.
In other gambling-related news from New Mexico, the state has recently targeted Kalshi, becoming yet another jurisdiction to do so, claiming that the prediction markets operator is offering products too similar to traditional sports betting.