The 173-144 voted showed house lawmakers remain skeptical of casino gambling.
This bill envisioned up to 5000 slot machines and 150 table games at one location, was touted as the product of study and hard-won experience.
Jaffrey Democrat Richard Ames was its lead sponsor.
"We took what we learned and make a New Hampshire plan."
But critics said the plan, which beefed up the regulations included in the proposal the House rejected last year, ceded too much power to a gambling authority.
They also argued that casino revenue wouldn’t meet estimates, and once here gambling would proliferate.
Mary Jane Wallner is a Democrat from Concord.
"Once we open the door to slot machines and casino gambling we will never be able to turn back."
A bill to authorize two casinos is still pending in the state senate.
In a statement, Governor Maggie Hassan said without a casino New Hampshire will soon feel the impact of lost revenue and increased social costs stemming from as yet unbuilt casinos in Massachusetts.