New Mexico Initiates Data Collection on Slot Machine Winners to Address SNAP Errors
Introduction to New Data Initiative
The New Mexico Health Care Authority (HCA) and the New Mexico Gaming Control Board (GCB) are collaborating to create a data-sharing agreement. This agreement will allow the GCB to access information on whether individuals receiving Supplemental Nutrition Assistance Program (SNAP) benefits have won large sums from slot machines, which could affect their eligibility for continued assistance.
Efforts to Reduce SNAP Payment Errors
This initiative is part of New Mexico’s broader effort to improve accuracy in SNAP benefit distribution by moving away from the COVID-19-era policy that permitted recipients to self-report income and household information. Niki Kozlowski, director of the Income Support Division at the HCA, acknowledges that self-attestation has led to errors in payments.
Currently, New Mexico has one of the highest SNAP payment error rates in the United States at 16.8%, ranking third after Alaska and Washington, D.C. These errors include both overpayments and underpayments to beneficiaries.
The state faces pressure to reduce this error rate to below 6% by October 2027. Failure to do so could mean repaying up to 15% of the total SNAP benefits distributed, potentially amounting to approximately $173 million, according to Legislative Finance Committee analysts.
Implications of Slot Machine Winnings on SNAP Eligibility
HCA Secretary Kari Armijo explained that winning a significant amount from slot machines—defined federally as $4,500 or more—can disqualify an individual from receiving SNAP benefits. Identifying such winnings is crucial to ensuring that only eligible recipients continue to receive aid.
Scope and Sources of Gambling Data
Michelle Pato, lead attorney for the Gaming Control Board, clarified that the data collection will focus on racetrack casinos and about 50 veterans’ and fraternal organizations licensed to operate up to 15 slot machines each, including groups like Elks Lodges and the American Legion.
Notably, tribal casinos are excluded from this data-sharing initiative since they are not governed by the federal Farm Bill provision that mandates reporting. Any data exchange involving tribal casinos would require separate negotiations with individual tribes and pueblos, and potentially revisions to tribal gaming compacts to legally authorize such sharing.
Additional Gambling-Related Developments in New Mexico
Separately, New Mexico has taken regulatory action against Kalshi, a prediction market operator. The state contends that Kalshi’s offerings resemble traditional sports betting more than allowed, joining other jurisdictions in challenging its operations.
