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Rhode Island Senate Bill S0003

Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0003 Compare Versions

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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO LOTTERY GAMES,
1616 TABLE GAMES AND SPOR TS WAGERING
1717 Introduced By: Senators Ruggerio, Goodwin, Felag, Gallo, Murray, Ciccone, Miller, and
1818 Raptakis
1919 Date Introduced: January 10, 2023
2020 Referred To: Senate Special Legislation and Veterans Affairs
2121
2222
2323 It is enacted by the General Assembly as follows:
2424 SECTION 1. Section 42-61.2-1 of the General Laws in Chapter 42-61.2 entitled "Video 1
2525 Lottery Games, Table Games and Sports Wagering" is hereby amended to read as follows: 2
2626 42-61.2-1. Definitions. 3
2727 For the purpose of this chapter, the following words shall mean: 4
2828 (1) “2017 Budget Act” means 2017 — H 5175 Substitute A, as amended, entitled “An Act 5
2929 Relating to Making Appropriations for the Support of the State for the Fiscal Year ending June 30, 6
3030 2018,” which Act was signed into law by the Governor of Rhode Island on August 3, 2017. 7
3131 (2) “Casino gaming” means any and all table and casino-style games played with cards, 8
3232 dice, or equipment, for money, credit, or any representative of value; including, but not limited to: 9
3333 roulette, blackjack, big six, craps, poker, baccarat, paigow, any banking or percentage game, or any 10
3434 other game or device included within the definition of Class III gaming as that term is defined in 11
3535 Section 2703(8) of Title 25 of the United States Code and that is approved by the state through the 12
3636 division of state lottery. 13
3737 (3) “Central communication system” means a system approved by the Division, linking all 14
3838 Video Lottery Terminals at a licensed video lottery retailer location to provide auditing program 15
3939 information and any other information determined by the Division. In addition, the central 16
4040 communications system must provide all computer hardware and related software necessary for the 17
4141 establishment and implementation of a comprehensive system as required by the Division. 18
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4545 (4) “Collegiate sports or athletic event” means a sporting event offered or sponsored by or 1
4646 played in connection with, a public or private institution that offers educational services beyond 2
4747 the secondary level, but shall not include a collegiate sports contest or collegiate athletic event that 3
4848 takes place in Rhode Island or a sports contest or athletic event in which any Rhode Island college 4
4949 team participates regardless of where the event takes place unless such contest or event is part of a 5
5050 collegiate tournament. 6
5151 (5) “Collegiate tournament” means a series of collegiate sports or athletic events involving 7
5252 four (4) or more collegiate teams that make up a single unit of competition. 8
5353 (5)(6) “Consolidated promotional points program” means, collectively, the “Initial 9
5454 Promotional Points Program” and the “Supplementary Promotional Points Program” applicable to 10
5555 the Lincoln gaming facility and the “Initial Promotional Points Program” and the “Supplementary 11
5656 Promotional Points Program” applicable to the Tiverton gaming facility, with each of the terms 12
5757 “Initial Promotional Points Program” and “Supplementary Promotional Points Program” having 13
5858 the meanings given such terms in the 2017 Budget Act. 14
5959 (6)(7) “Credit facilitator” means any employee of a licensed video lottery retailer approved 15
6060 in writing by the Division whose responsibility is to, among other things, review applications for 16
6161 credit by players, verify information on credit applications, grant, deny, and suspend credit, 17
6262 establish credit limits, increase and decrease credit limits, and maintain credit files, all in 18
6363 accordance with this chapter and rules and regulations approved by the Division. 19
6464 (7)(8) “DBR” means the department of business regulation, division of gaming and 20
6565 athletics licensing, and/or any successor in interest thereto. 21
6666 (8)(9) “Director” means the director of the Division. 22
6767 (9)(10) “Division” means the state lottery division of the department of revenue and/or any 23
6868 successor in interest thereto. 24
6969 (10)(11) “Hosting facility” refers to the Lincoln gaming facility and the Tiverton gaming 25
7070 facility. 26
7171 (11)(12) “IGT” means IGT Global Solutions Corporation, a Delaware corporation. 27
7272 (12)(13) “Licensed video lottery retailer” means a pari-mutuel licensee specifically 28
7373 licensed by the Director subject to the approval of the Division to become a licensed video lottery 29
7474 retailer. 30
7575 (13)(14) “Lincoln gaming facility” means the gaming and entertainment facility located at 31
7676 100 Twin River Road in the town of Lincoln, Rhode Island (sometimes referred to as “Twin River” 32
7777 or the “Twin River gaming facility”). 33
7878 (14)(15) “Marketing Year” means the fiscal year of the state. 34
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8282 (15)(16) “Net table-game revenue” means win from table games minus counterfeit 1
8383 currency. 2
8484 (16)(17) “Net terminal income” means currency placed into a Video Lottery Terminal less 3
8585 credits redeemed for cash by players. 4
8686 (17)(18) “Newport Grand” means Newport Grand, LLC, a Rhode Island limited-liability 5
8787 company, successor to Newport Grand Jai Alai, LLC, and each permitted successor to and assignee 6
8888 of Newport Grand, LLC under the Newport Grand Master Contract, including, without limitation, 7
8989 Premier (as defined in subsection (25) of this section) and/or Twin River-Tiverton (as defined in 8
9090 subsection (40) of this section) provided it is a pari-mutuel licensee (as defined in this section); 9
9191 provided, further, however, where the context indicates that the term is referring to the physical 10
9292 facility, then it shall mean the gaming and entertainment facility located at 150 Admiral Kalbfus 11
9393 Road, Newport, Rhode Island. 12
9494 (18)(19) “Newport Grand Marketing Year” means each fiscal year of the state or a portion 13
9595 thereof between November 23, 2010, and the termination date of the Newport Grand Master 14
9696 Contract. 15
9797 (19)(20) “Newport Grand Master Contract” means that certain master video lottery 16
9898 terminal contract made as of November 23, 2005, by and between the division of lotteries of the 17
9999 Rhode Island department of administration and Newport Grand, as amended and extended from 18
100100 time to time as authorized therein and/or as such Newport Grand Master Contract may be assigned 19
101101 as permitted therein. 20
102102 (20)(21) “Online gaming account” means an account opened by a patron that such patron 21
103103 shall use for the deposit and withdrawal of funds used for online sports wagering. 22
104104 (21)(22) “Online sports wagering” means engaging in the act of sports wagering by the 23
105105 placing of wagers on sporting events or a combination of sporting events, or on the individual 24
106106 performance statistics of athletes in a sporting event or a combination of sporting events, over the 25
107107 internet through computers, mobile applications on mobile devices or other interactive devices 26
108108 approved by the Division, which wagers are accepted by a server-based gaming system located at 27
109109 the premises of a hosting facility authorized to accept sports wagers and administer payoffs of 28
110110 winning sports wagers; all such wagers shall be deemed to be placed and accepted at the premises 29
111111 of a hosting facility. 30
112112 (22)(23) “Online sports-wagering revenue” means: 31
113113 (i) The total of cash or cash equivalents received from online sports wagering minus the 32
114114 total of: 33
115115 (I) Cash or cash equivalents paid to players as a result of online sports wagering; 34
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119119 (II) Marketing expenses related to online sports wagering as agreed to by the Division, the 1
120120 sports-wagering vendor, and the host facilities, as approved by the Division; and 2
121121 (III) Any federal excise taxes (if applicable). 3
122122 (ii) The term does not include any of the following: 4
123123 (I) Counterfeit cash. 5
124124 (II) Coins or currency of other countries received as a result of online sports wagering, 6
125125 except to the extent that the coins or currency are readily convertible to cash. 7
126126 (III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports-wagering 8
127127 vendor for which the hosting facility or sports-wagering vendor is not reimbursed. 9
128128 (IV) Free play provided by the hosting facility or sports-wagering vendor as authorized by 10
129129 the Division to a player and subsequently “won back” by the hosting facility or sports-wagering 11
130130 vendor, for which the hosting facility or sports-wagering vendor can demonstrate that it or its 12
131131 affiliate has not been reimbursed in cash. 13
132132 (23)(24) “Pari-mutuel licensee” means: 14
133133 (i) An entity licensed pursuant to § 41-3.1-3; and/or 15
134134 (ii) An entity licensed pursuant to § 41-7-3. 16
135135 (24)(25) “Payoff,” when used in connection with sports wagering, means cash or cash 17
136136 equivalents paid to a player as a result of the player’s winning a sports wager. A “payoff” is a type 18
137137 of “prize,” as the term “prize” is used in chapters 61, 61.2, and 61.3 of this title. 19
138138 (25)(26) “Premier” means Premier Entertainment II, LLC and/or its successor in interest 20
139139 by reason of the acquisition of the stock, membership interests, or substantially all of the assets of 21
140140 such entity. 22
141141 (26)(27) “Prior marketing year,” means, with respect to a marketing year, the most recent 23
142142 previous marketing year during which the Division operated a majority of the authorized video 24
143143 lottery games at each of the Lincoln gaming facility and the Tiverton gaming facility for at least 25
144144 360 days (or 361 days in the case there are 366 days in such marketing year). For the avoidance of 26
145145 doubt, because the Division will not have operated a majority of the authorized video lottery games 27
146146 at the Lincoln gaming facility and at the Tiverton gaming facility for at least 361 days during the 28
147147 marketing year expiring on June 30, 2020, the prior marketing year with respect to the marketing 29
148148 year expiring on June 30, 2021, shall be the marketing year expiring on June 30, 2019. 30
149149 (27)(28) “Promotional points” has the meaning given such term in the 2017 Budget Act. 31
150150 (28)(29) “Rake” means a set fee or percentage of cash and chips representing cash wagered 32
151151 in the playing of a nonbanking table game assessed by a table games retailer for providing the 33
152152 services of a dealer, gaming table, or location, to allow the play of any nonbanking table game. 34
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156156 (29)(30) “Server-based gaming system” means all hardware, software, and 1
157157 communications devices that comprise a system utilized for the purpose of offering an electronic 2
158158 platform used in connection with the process of placing and accepting sports wagers. 3
159159 (30)(31) “Sporting event” means any professional sport or athletic event, any Olympic or 4
160160 international sports competition event, and any collegiate sport or athletic event, and any other 5
161161 event authorized by the division or any portion thereof, including, but not limited to, the individual 6
162162 performance statistics of athletes in a sports event or combination of sports events, except “sporting 7
163163 event” shall not include a : 8
164164 (i) The individual performance statistics of athletes in a collegiate sports or athletic event 9
165165 which is part of a collegiate tournament: 10
166166 (A) Takes place in Rhode Island; or 11
167167 (B) In which any Rhode Island college team participates regardless of where the event 12
168168 takes place; or 13
169169 (ii) Any other prohibited sporting event as determined by the division. 14
170170 (31)(32) “Sports wagering” means the business of accepting wagers on sporting events or 15
171171 a combination of sporting events, or on the individual performance statistics of athletes in a sporting 16
172172 event or combination of sporting events, by any system or method of wagering. The term includes, 17
173173 but is not limited to, exchange wagering, parlays, over-under, moneyline, pools, and straight bets, 18
174174 and the term includes the placement of such bets and wagers. However, the term does not include, 19
175175 without limitation, the following: 20
176176 (i) Lotteries, including video lottery games and other types of casino gaming operated by 21
177177 the state, through the Division, as of June 22, 2018. 22
178178 (ii) Pari-mutuel betting on the outcome of thoroughbred or harness horse racing, or 23
179179 greyhound dog racing, including but not limited to, pari-mutuel wagering on a race that is 24
180180 “simulcast” (as defined in § 41-11-1), as regulated elsewhere pursuant to the general laws, 25
181181 including in chapters 3, 3.1, 4, and 11 of title 41. 26
182182 (iii) Off-track betting on racing events, as regulated elsewhere pursuant to the general laws, 27
183183 including in chapter 10 of title 41. 28
184184 (iv) Wagering on the respective scores or points of the game of jai alai or pelota and the 29
185185 sale of pari-mutuel pools related to such games, as regulated elsewhere pursuant to the general 30
186186 laws, including in chapter 7 of title 41. 31
187187 (v) Lotteries, charitable gaming, games of chance, bingo games, raffles, and pull-tab lottery 32
188188 tickets, to the extent permitted and regulated pursuant to chapter 19 of title 11. 33
189189 (32)(33) “Sports-wagering device” means any mechanical, electrical, or computerized 34
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193193 contrivance, terminal, machine, or other device, apparatus, equipment, or supplies approved by the 1
194194 Division and used to conduct sports wagering. 2
195195 (33)(34) “Sports-wagering revenue” means: 3
196196 (i) The total of cash or cash equivalents received from sports wagering minus the total of: 4
197197 (I) Cash or cash equivalents paid to players as a result of sports wagering; 5
198198 (II) The annual flat fee to the host communities as defined by § 42-61.2-5(c); 6
199199 (III) Marketing expenses related to sports wagering as agreed to by the Division, the sports-7
200200 wagering vendor, and the host facilities, as approved by the Division; and 8
201201 (IV) Any federal excise taxes (if applicable). 9
202202 (ii) The term does not include any of the following: 10
203203 (I) Counterfeit cash. 11
204204 (II) Coins or currency of other countries received as a result of sports wagering, except to 12
205205 the extent that the coins or currency are readily convertible to cash. 13
206206 (III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports-wagering 14
207207 vendor for which the hosting facility or sports-wagering vendor is not reimbursed. 15
208208 (IV) Free play provided by the hosting facility or sports-wagering vendor as authorized by 16
209209 the Division to a patron and subsequently “won back” by the hosting facility or sports-wagering 17
210210 vendor, for which the hosting facility or sports-wagering vendor can demonstrate that it or its 18
211211 affiliate has not been reimbursed in cash. 19
212212 (34)(35) “Sports-wagering vendor” means any entity authorized by the Division to operate 20
213213 sports betting on the Division’s behalf in accordance with this chapter. 21
214214 (35)(36) “Table game” or “Table gaming” means that type of casino gaming in which table 22
215215 games are played for cash or chips representing cash, or any other representation of value that has 23
216216 been approved by the Division, using cards, dice, or equipment and conducted by one or more live 24
217217 persons. 25
218218 (36)(37) “Table-game retailer” means a retailer authorized to conduct table gaming 26
219219 pursuant to § 42-61.2-2.1 or § 42-61.2-2.3. 27
220220 (37)(38) “Technology provider” means any individual, partnership, corporation, or 28
221221 association that designs, manufactures, installs, maintains, distributes, or supplies Video Lottery 29
222222 Terminals or associated equipment for the sale or use in this state. 30
223223 (38)(39) “Tiverton gaming facility” means the gaming and entertainment facility located 31
224224 at the intersection of William S. Canning Boulevard and Stafford Road in the town of Tiverton, 32
225225 Rhode Island (sometimes referred to as “Twin River-Tiverton”). 33
226226 (39)(40) “Twin River” (sometimes referred to as “UTGR”) means UTGR, Inc., a Delaware 34
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230230 corporation, and each permitted successor to and assignee of UTGR, Inc.; provided, however, 1
231231 where the context indicates that the term is referring to a physical facility, then “Twin River” shall 2
232232 mean the Lincoln gaming facility. 3
233233 (40)(41) “Twin River-Tiverton” means Twin River-Tiverton, LLC and/or its successor in 4
234234 interest by reason of the acquisition of the stock, membership interests, or substantially all of the 5
235235 assets of such entity; provided, however, where the context indicates that the term is referring to a 6
236236 physical facility, then “Twin River-Tiverton” shall mean the Tiverton gaming facility. 7
237237 (41)(42) “Twin River-Tiverton Marketing Year” has the same meaning as Marketing Year 8
238238 (as defined in subsection (14) of this section). 9
239239 (42)(43) “Twin River-Tiverton Master Contract” has the same meaning as Newport Grand 10
240240 Master Contract (as defined in subsection (19) of this section). 11
241241 (43)(44) “UTGR Master Contract” means that certain master video lottery terminal 12
242242 contract made as of July 1, 2005, by and between the division of lotteries of the Rhode Island 13
243243 department of administration (now the division of lotteries of the Rhode Island department of 14
244244 revenue) and Twin River, as amended and extended from time to time as authorized therein and/or 15
245245 as such UTGR Master Contract may be assigned as permitted therein. 16
246246 (44)(45) “Video Lottery Agreement” means that certain Video Lottery Central Computer 17
247247 System Agreement dated as of December 20, 2001, by and between IGT and the Division, as 18
248248 amended, extended, assigned, and assumed from time to time. 19
249249 (45)(46) “Video lottery games” means lottery games played on Video Lottery Terminals 20
250250 controlled by the Division. 21
251251 (46)(47) “Video lottery terminal” means any electronic computerized video game machine 22
252252 that, upon the insertion of cash or any other representation of value that has been approved by the 23
253253 Division, is available to play a video game authorized by the Division, and that uses a video display 24
254254 and microprocessors in which, by chance, the player may receive free games or credits that can be 25
255255 redeemed for cash. The term does not include a machine that directly dispenses coins, cash, or 26
256256 tokens. 27
257257 (47)(48) “VLT Agreement” means that certain Video Lottery Terminal Technology 28
258258 Provider License Agreement dated as of September 28, 2000, by and between IGT and the Division, 29
259259 as amended, extended, assigned, and assumed from time to time. 30
260260 SECTION 2. This act shall take effect upon passage. 31
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267267 EXPLANATION
268268 BY THE LEGISLATIVE COUNCIL
269269 OF
270270 A N A C T
271271 RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO LOTTERY GAMES,
272272 TABLE GAMES AND SPOR TS WAGERING
273273 ***
274274 This act would amend the definitions of "collegiate sports or athletic event" and "sporting 1
275275 event" within the chapter on "video lottery games, table games and sports wagering". 2
276276 This act would take effect upon passage. 3
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