RI
Rhode Island Senate Bill S0948

Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0948 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 GOVERNME NT -- VIDEO LOTTERY GAMES,
1616 TABLE GAMES AND SPOR TS WAGERING
1717 Introduced By: Senators Ruggerio, Pearson, Ciccone, Gallo, Felag, F. Lombardi, and
1818 Lombardo
1919 Date Introduced: April 27, 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. The state, through the State Lottery Division of the Department of Revenue 1
25-(the "Division"), shall implement, operate, conduct, and control iGaming, at the Twin River and 2
25+(the “Division”), shall implement, operate, conduct, and control iGaming, at the Twin River and 2
2626 the Twin River-Tiverton gaming facilities. In furtherance thereof, the Division is authorized to 3
2727 enter into agreements with the Rhode Island Affiliates of Bally's Corporation, a Delaware 4
28-corporation ("Bally's"), in connection with iGaming. This act shall be liberally construed to 5
28+corporation (“Bally’s”), in connection with iGaming. This act shall be liberally construed to 5
2929 effectuate its purposes. 6
30-SECTION 2. Definitions. 7
31-(a) In this act, capitalized terms not otherwise defined shall have the meanings given them 8
32-in § 42-61.2-1 of the General Laws as of the effective date of this act after giving effect to the 9
33-amendments thereto pursuant to Section 4 of this act. 10
34-(b) In this act: 11
35-(1) "Affiliate" means a Person who or that directly, or indirectly through one or more 12
36-intermediaries, controls, is controlled by or is under common control with a Person. 13
37-(2) "Bally's" means Bally's Corporation, a Delaware corporation. 14
38-(3) "Control" means the possession, directly or indirectly, of the power to direct or cause 15
39-the direction of the management and policies of a Person, whether through the ownership of voting 16
40-securities, by contract or otherwise. 17
41-(4) "iGaming Joint Venture" means a Delaware limited liability company to be owned in 18
30+SECTION 2. Sections 42-61.2-1, 42-61.2-4, 42-61.2-6, 42-61.2-9, 42-61.2-11, 42-61.2-14 7
31+and 42-61.2-15 of the General Laws in Chapter 42-61.2 entitled "Video Lottery Games, Table 8
32+Games and Sports Wagering" are hereby amended to read as follows: 9
33+42-61.2-1. Definitions. 10
34+For the purpose of this chapter, the following words shall mean: 11
35+(1) “2017 Budget Act” means 2017 — H 5175 Substitute A, as amended, entitled “An Act 12
36+Relating to Making Appropriations for the Support of the State for the Fiscal Year ending June 30, 13
37+2018,” which Act was signed into law by the Governor of Rhode Island on August 3, 2017. 14
38+(2) “Affiliate” means a person who or that directly, or indirectly through one or more 15
39+intermediaries, controls, is controlled by or is under common control with a Person. 16
40+(3) “Bally's” means Bally's Corporation, a Delaware corporation. 17
41+(2)(4) “Casino gaming” means any and all table and casino-style games played with cards, 18
4242
4343
44-LC002885/SUB B/2 - Page 2 of 20
45-part by IGT Global Solutions Corporation, a Delaware corporation ("IGT") or Affiliates of IGT 1
46-and by Bally's or Affiliates of Bally's and controlled by Bally's or Affiliates of Bally's. 2
47-(5) "Person" means a natural person, corporation, limited liability company, partnership 3
48-(general or limited), joint venture, estate, trust or unincorporated association; any federal, state, 4
49-county, or municipal government or any bureau, department or agency thereof; any fiduciary acting 5
50-in such capacity, on behalf of any of the foregoing; or any other legal or business entity or 6
51-organization. 7
52-SECTION 3. Authorization and Empowerment of State Lottery Division with respect to 8
53-the Rhode Island Affiliates of Bally's. Notwithstanding any provisions of the general laws of the 9
54-state or regulations adopted thereunder to the contrary, including, without limitation, the provisions 10
55-of chapter 2 of title 37, chapter 61 of title 42, and chapter 64 of title 42, the Division is hereby 11
56-authorized and empowered: 12
57-(a) To enter into a contract with the Rhode Island Affiliates of Bally's to be the exclusive 13
58-iGaming game vendor ("iGaming Game Agreement") under the terms and conditions set forth in 14
59-this act, which shall, among other matters: 15
60-(1) Provide for a term that is coterminous with the UTGR Master Contract or Twin River- 16
61-Tiverton Master Contract, whichever agreement ends first; 17
62-(2) Provide that the state's maximum obligation of the payment service provider 18
63-transactions fees associated with the Division's operation of Gaming shall be thirty-three percent 19
64-(33%); 20
65-(3) Obligate the Rhode Island Affiliates of Bally's to regularly update online slot games 21
66-offered to players in connection with the Division's operation of iGaming on schedules agreed to 22
67-by the Division; 23
68-(4) Provide the Division with the right to assess liquidated damages against Bally's or its 24
69-Rhode Island Affiliates if any iGaming games are not available to players in accordance with this 25
70-act as determined by the Division; 26
71-(5) Require the Rhode Island Affiliates of Bally's to an enter into an assignment and 27
72-assumption agreement between the Rhode Island Affiliates of Bally's and the iGaming Joint 28
73-Venture (the "iGaming Assignment and Assumption Agreement"), the terms of which shall be 29
74-subject to the review and approval of the Division; 30
75-(6) Contain such other terms and conditions as the Division and the Rhode Island Affiliates 31
76-of Bally's may agree. 32
77-(b) To consent to: 33
78-(1) The irrevocable assignment by the Rhode Island Affiliates of Bally's to the iGaming 34
44+LC002885/SUB A - Page 2 of 20
45+dice, or equipment, for money, credit, or any representative of value; including, but not limited to: 1
46+roulette, blackjack, big six, craps, poker, baccarat, paigow, any banking or percentage game, or any 2
47+other game or device included within the definition of Class III gaming as that term is defined in 3
48+Section 2703(8) of Title 25 of the United States Code and that is approved by the state through the 4
49+division of state lottery. 5
50+(3)(5) “Central communication system” means a system approved by the Division, linking 6
51+all Video Lottery Terminals at a licensed video lottery retailer location to provide auditing program 7
52+information and any other information determined by the Division. In addition, the central 8
53+communications system must provide all computer hardware and related software necessary for the 9
54+establishment and implementation of a comprehensive system as required by the Division. 10
55+(4)(6) “Collegiate sports or athletic event” shall not include a collegiate sports contest or 11
56+collegiate athletic event that takes place in Rhode Island or a sports contest or athletic event in 12
57+which any Rhode Island college team participates regardless of where the event takes place. 13
58+(5)(7) “Consolidated promotional points program” means, collectively, the “Initial 14
59+Promotional Points Program” and the “Supplementary Promotional Points Program” applicable to 15
60+the Lincoln gaming facility and the “Initial Promotional Points Program” and the “Supplementary 16
61+Promotional Points Program” applicable to the Tiverton gaming facility, with each of the terms 17
62+“Initial Promotional Points Program” and “Supplementary Promotional Points Program” having 18
63+the meanings given such terms in the 2017 Budget Act. 19
64+(8) “Control” means the possession, directly or indirectly, of the power to direct or cause 20
65+the direction of the management and policies of a Person, whether through the ownership of voting 21
66+securities, by contract or otherwise. 22
67+(6)(9) “Credit facilitator” means any employee of a licensed video lottery retailer approved 23
68+in writing by the Division whose responsibility is to, among other things, review applications for 24
69+credit by players, verify information on credit applications, grant, deny, and suspend credit, 25
70+establish credit limits, increase and decrease credit limits, and maintain credit files, all in 26
71+accordance with this chapter and rules and regulations approved by the Division. 27
72+(7)(10) “DBR” means the department of business regulation, division of gaming and 28
73+athletics licensing, and/or and any successor in interest thereto. 29
74+(8)(11) “Director” means the director of the Division. 30
75+(9)(12) “Division” means the state lottery division of the department of revenue and/or any 31
76+successor in interest thereto. 32
77+(10)(13) “Hosting facility” refers to the Lincoln gaming facility and the Tiverton gaming 33
78+facility. 34
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82-Joint Venture of: 1
83-(i) The right to be the exclusive iGaming game vendor providing online slot games and 2
84-online table games to the Division, such online slot games and online table games being games 3
85-owned or licensed by an owner or an Affiliate of an owner of the iGaming game vendor or games 4
86-owned or licensed by a third party, that (in either case) are licensed to the iGaming game vendor 5
87-for sublicense to the Division as authorized by the Division. 6
88-(2) The assumption by the iGaming Joint Venture of the obligations of the Rhode Island 7
89-Affiliates of Bally's under the iGaming Game Agreement pursuant to the iGaming Assignment and 8
90-Assumption Agreement, the terms of which shall be subject to the review and approval of the 9
91-Division. 10
92-(c) To enter into a contract with the Rhode Island Affiliates of Bally's to be the exclusive 11
93-iGaming platform vendor ("iGaming Platform Agreement") under the terms and conditions set 12
94-forth in this act, which shall, among other matters: 13
95-(1) Provide for a term that is coterminous with the UTGR Master Contract and Twin River 14
96-Tiverton Master Contract; 15
97-(2) Obligate Bally's to regularly update and replace the server-based gaming system for 16
98-iGaming on schedules agreed to by the Division; 17
99-(3) Provide the Division with the right to assess liquidated damages against Bally's or its 18
100-Rhode Island Affiliates if iGaming wagers are not being accepted by the iGaming server-based 19
101-gaming system in accordance with this act as determined by the Division; 20
102-(4) Obligate the Rhode Island Affiliates of Bally's to fund the Division's responsible 21
103-gambling programs to include prevention and educations services in addition to those funds 22
104-provided under § 42-61.2-14, as amended by this act; 23
105-(5) Require the Rhode Island Affiliates of Bally's to host server-based gaming systems in 24
106-connection with online sports wagering as determined by the Division in the Division's sole 25
107-discretion; 26
108-(6) Require the Rhode Island Affiliates of Bally's to pay for the costs, including, but not 27
109-limited to, professional and project management fees, incurred by the Division in connection with 28
110-implementation of the Division's operation of iGaming; 29
111-(7) Provide financial protection to the state related to the impact on traditional lottery 30
112-products as a result of iGaming whereby Bally's or the Rhode Island Affiliates of Bally's make an 31
113-annual payment to the Division in an amount equal to one hundred percent (100%) of the first one 32
114-million dollars ($1,000,000) of any shortfall and fifty percent (50%) of any shortfall between one 33
115-million dollars ($1,000,000) and two million dollars ($2,000,000) in net revenue received by the 34
81+LC002885/SUB A - Page 3 of 20
82+(14)(a) "iGaming" means casino gaming, inclusive of online slot games and online table 1
83+games as defined herein, and made available to players who have reached twenty-one (21) years of 2
84+age through the use of the Internet through computers, mobile applications on mobile devices, or 3
85+other interactive devices approved by the Division, which wagers are accepted by a server-based 4
86+gaming system located at the premises of a hosting facility. 5
87+(b) All wagers on iGaming games shall be deemed to be placed and accepted, and iGaming 6
88+games shall be deemed to be operated on the Division's behalf, at the premises of a hosting facility. 7
89+(c) Notwithstanding the foregoing, the term "iGaming" does not include the following: 8
90+(i) Sports wagering conducted under § 42-61.2-2.4; 9
91+(ii) Online sports wagering conducted under § 42-61.2-2.4 and regulated elsewhere 10
92+pursuant to the general laws, including in § 42-61.2-16; 11
93+(iii) Pari-mutuel betting on the outcome of thoroughbred or harness horse racing, or 12
94+greyhound dog racing, including, but not limited to, pari-mutuel wagering on a race that is 13
95+"simulcast" (as defined in § 41-11-1), as regulated elsewhere pursuant to the general laws, including 14
96+in chapters 3, 3.1, 4, and 11 of title 41; 15
97+(iv) Off-track betting on racing events, as regulated elsewhere pursuant to the general laws, 16
98+including in chapter 10 of title 41; 17
99+(v) Wagering on the respective scores or points of the game of jai alai or pelota and the 18
100+sale of pari-mutuel pools related to such games, as regulated elsewhere pursuant to the general 19
101+laws, including in chapter 7 of title 41; and 20
102+(vi) Lotteries, charitable gaming, games of chance, bingo games, raffles, and pull-tab 21
103+lottery tickets, to the extent permitted and regulated pursuant to chapter 19 of title 11. 22
104+(15) "iGaming game vendor" means any entity authorized to provide online slot games and 23
105+online table games, as approved by the Division in connection with iGaming, on the Division’s 24
106+behalf in accordance with this chapter, which is: 25
107+(i) Owned in part by IGT (or by an entity controlling, controlled by or under common 26
108+control with IGT) and owned in the remaining part and controlled by (collectively) Twin River and 27
109+Twin River-Tiverton (or by an entity controlling, controlled by or under common control with Twin 28
110+River and Twin River- Tiverton), meaning that such controlling entities or entity possess, directly 29
111+or indirectly, the power to direct or cause the direction of the management and policies of the 30
112+iGaming game vendor, whether through the ownership of voting securities, by contract or 31
113+otherwise; and 32
114+(ii) Authorized by the Division to be the exclusive provider of online slot games and online 33
115+table games to the Division in accordance with this chapter, such online slot games and online table 34
116116
117117
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119-Division from traditional lottery products, including online games and instant ticket games. For 1
120-purposes of this subdivision, a shortfall in net revenue from traditional lottery products shall mean 2
121-the difference between the net revenue in traditional lottery products in any given fiscal year and 3
122-the net revenue in traditional lottery products in the most recent full fiscal year before the start of 4
123-iGaming. 5
124-(8) Contain such other terms and conditions as the Division and Bally's may agree. 6
125-(d) Nothing in this act shall be deemed to affect the authority of the Division to regulate 7
126-Bally's, Affiliates of Bally's, or the iGaming Joint Venture in connection with state-operated casino 8
127-gaming (including iGaming). 9
128-SECTION 4. Sections 42-61.2-1, 42-61.2-4, 42-61.2-6, 42-61.2-9, 42-61.2-11, 42-61.2-14 10
129-and 42-61.2-15 of the General Laws in Chapter 42-61.2 entitled "Video Lottery Games, Table 11
130-Games and Sports Wagering" are hereby amended to read as follows: 12
131-42-61.2-1. Definitions. 13
132-For the purpose of this chapter, the following words shall mean: 14
133-(1) "2017 Budget Act" means 2017 — H 5175 Substitute A, as amended, entitled "An Act 15
134-Relating to Making Appropriations for the Support of the State for the Fiscal Year ending June 30, 16
135-2018," which Act was signed into law by the Governor of Rhode Island on August 3, 2017. 17
136-(2) "Casino gaming" means any and all table and casino-style games played with cards, 18
137-dice, or equipment, for money, credit, or any representative of value; including, but not limited to: 19
138-roulette, blackjack, big six, craps, poker, baccarat, paigow, any banking or percentage game, or any 20
139-other game or device included within the definition of Class III gaming as that term is defined in 21
140-Section 2703(8) of Title 25 of the United States Code and that is approved by the state through the 22
141-division of state lottery. 23
142-(3) "Central communication system" means a system approved by the Division, linking all 24
143-Video Lottery Terminals at a licensed video lottery retailer location to provide auditing program 25
144-information and any other information determined by the Division. In addition, the central 26
145-communications system must provide all computer hardware and related software necessary for the 27
146-establishment and implementation of a comprehensive system as required by the Division. 28
147-(4) "Collegiate sports or athletic event" shall not include a collegiate sports contest or 29
148-collegiate athletic event that takes place in Rhode Island or a sports contest or athletic event in 30
149-which any Rhode Island college team participates regardless of where the event takes place. 31
150-(5) "Consolidated promotional points program" means, collectively, the "Initial 32
151-Promotional Points Program" and the "Supplementary Promotional Points Program" applicable to 33
152-the Lincoln gaming facility and the "Initial Promotional Points Program" and the "Supplementary 34
118+LC002885/SUB A - Page 4 of 20
119+games being games owned or licensed by an owner of the iGaming game vendor (or by an entity 1
120+controlling, controlled by or under common control with such entity) or games owned or licensed 2
121+by a third party, that (in either case) are licensed to the iGaming game vendor for sublicense to the 3
122+Division as authorized by the Division. 4
123+(16) “iGaming Joint Venture” means a Delaware limited liability company to be owned in 5
124+part by IGT Global Solutions Corporation, a Delaware corporation (“IGT”) or Affiliates of IGT 6
125+and by Bally’s or Affiliates of Bally’s and controlled by Bally’s or Affiliates of Bally’s. 7
126+(17) "iGaming platform vendor" means an entity that operates a hosting facility (or by an 8
127+entity controlling, controlled by or under common control with such an entity) and that is authorized 9
128+by the Division to conduct iGaming on the Division's behalf in accordance with this chapter. 10
129+(11)(18) “IGT” means IGT Global Solutions Corporation, a Delaware corporation. 11
130+(12)(19) “Licensed video lottery retailer” means a pari-mutuel licensee specifically 12
131+licensed by the Director subject to the approval of the Division to become a licensed video lottery 13
132+retailer. 14
133+(13)(20) “Lincoln gaming facility” means the gaming and entertainment facility located at 15
134+100 Twin River Road in the town of Lincoln, Rhode Island (sometimes referred to as “Twin River” 16
135+or the “Twin River gaming facility”). 17
136+(14)(21) “Marketing Year” means the fiscal year of the state. 18
137+(15)(22) “Net table-game revenue” means win from table games minus counterfeit 19
138+currency. 20
139+(16)(23) “Net terminal income” means currency placed into a Video Lottery Terminal less 21
140+credits redeemed for cash by players. 22
141+(17)(24) “Newport Grand” means Newport Grand, LLC, a Rhode Island limited-liability 23
142+company, successor to Newport Grand Jai Alai, LLC, and each permitted successor to and assignee 24
143+of Newport Grand, LLC under the Newport Grand Master Contract, including, without limitation, 25
144+Premier (as defined in subsection (25) of this section) and/or Twin River-Tiverton (as defined in 26
145+subsection (40) of this section) provided it is a pari-mutuel licensee (as defined in this section); 27
146+provided, further, however, where the context indicates that the term is referring to the physical 28
147+facility, then it shall mean the gaming and entertainment facility located at 150 Admiral Kalbfus 29
148+Road, Newport, Rhode Island. 30
149+(18)(25) “Newport Grand Marketing Year” means each fiscal year of the state or a portion 31
150+thereof between November 23, 2010, and the termination date of the Newport Grand Master 32
151+Contract. 33
152+(19)(26) “Newport Grand Master Contract” means that certain master video lottery 34
153153
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156-Promotional Points Program" applicable to the Tiverton gaming facility, with each of the terms 1
157-"Initial Promotional Points Program" and "Supplementary Promotional Points Program" having the 2
158-meanings given such terms in the 2017 Budget Act. 3
159-(6) "Credit facilitator" means any employee of a licensed video lottery retailer approved in 4
160-writing by the Division whose responsibility is to, among other things, review applications for 5
161-credit by players, verify information on credit applications, grant, deny, and suspend credit, 6
162-establish credit limits, increase and decrease credit limits, and maintain credit files, all in 7
163-accordance with this chapter and rules and regulations approved by the Division. 8
164-(7) "DBR" means the department of business regulation, division of gaming and athletics 9
165-licensing, and/or and any successor in interest thereto. 10
166-(8) "Director" means the director of the Division. 11
167-(9) "Division" means the state lottery division of the department of revenue and/or any 12
168-successor in interest thereto. 13
169-(10) "Hosting facility" refers to the Lincoln gaming facility and the Tiverton gaming 14
170-facility. 15
171-(11)(a) "iGaming" means casino gaming, inclusive of online slot games and online table 16
172-games as defined herein, and made available to players who have reached twenty-one (21) years of 17
173-age through the use of the Internet through computers, mobile applications on mobile devices, or 18
174-other interactive devices approved by the Division, which wagers are accepted by a server-based 19
175-gaming system located at the premises of a hosting facility. 20
176-(b) All wagers on iGaming games shall be deemed to be placed and accepted, and iGaming 21
177-games shall be deemed to be operated on the Division's behalf, at the premises of a hosting facility. 22
178-(c) Notwithstanding the foregoing, the term "iGaming" does not include the following: 23
179-(i) Sports wagering conducted under § 42-61.2-2.4; 24
180-(ii) Online sports wagering conducted under § 42-61.2-2.4 and regulated elsewhere 25
181-pursuant to the general laws, including in § 42-61.2-16; 26
182-(iii) Pari-mutuel betting on the outcome of thoroughbred or harness horse racing, or 27
183-greyhound dog racing, including, but not limited to, pari-mutuel wagering on a race that is 28
184-"simulcast" (as defined in § 41-11-1), as regulated elsewhere pursuant to the general laws, including 29
185-in chapters 3, 3.1, 4, and 11 of title 41; 30
186-(iv) Off-track betting on racing events, as regulated elsewhere pursuant to the general laws, 31
187-including in chapter 10 of title 41; 32
188-(v) Wagering on the respective scores or points of the game of jai alai or pelota and the 33
189-sale of pari-mutuel pools related to such games, as regulated elsewhere pursuant to the general 34
155+LC002885/SUB A - Page 5 of 20
156+terminal contract made as of November 23, 2005, by and between the division of lotteries of the 1
157+Rhode Island department of administration and Newport Grand, as amended and extended from 2
158+time to time as authorized therein and/or as such Newport Grand Master Contract may be assigned 3
159+as permitted therein. 4
160+(20)(27) “Online gaming account” means an account opened by a patron that such patron 5
161+shall use for the deposit and withdrawal of funds used for online sports wagering, or iGaming. An 6
162+online gaming account may be used for both online sports wagering conducted under § 42-61.2-7
163+2.4 and iGaming, only if the patron is over twenty-one (21) years of age. A patron under the age of 8
164+twenty-one (21) is prohibited from having or using an online gaming account for iGaming. 9
165+(28) "Online slot game" means an online slot-machine-like game authorized by the 10
166+Division within the scope of the term iGaming. Online slot games include, but are not limited to, 11
167+online games involving digital versions of spinning reels or pay lines, and may include: 12
168+(i) An auto play feature; 13
169+(ii) An adjustable bet feature; 14
170+(iii) A random number generator to determine the game outcome; and 15
171+(iv) Games that can be played infinitely, using a nondepleting prize pool, offer prizes that 16
172+are all available with every play, and have odds that remain the same with every play. 17
173+(29) "Online slot gaming revenue" means: 18
174+(i) The total of cash or cash equivalents received from the operation of online slot games 19
175+minus the total of: 20
176+(A) Cash or cash equivalents paid to players as a result of the operation of online slot 21
177+games; 22
178+(B) Marketing expenses related to online slot games as agreed to by the Division, the 23
179+iGaming game vendor, and the iGaming platform vendor, as approved by the Division; and 24
180+(C) Any federal excise taxes (if applicable). 25
181+(ii) The term online slot gaming revenue does not include any of the following: 26
182+(A) Counterfeit cash; 27
183+(B) Coins or currency of other countries received as a result of the operation of online slot 28
184+games, except to the extent that the coins or currency are readily convertible to cash; 29
185+(C) Cash taken in a fraudulent act perpetrated against the iGaming platform vendor or 30
186+iGaming game vendor for which the iGaming platform vendor or iGaming game vendor is not 31
187+reimbursed; 32
188+(D) Free play provided by the iGaming platform vendor or iGaming game vendor as 33
189+authorized by the Division to a player and subsequently "won back" by the iGaming platform 34
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193-laws, including in chapter 7 of title 41; and 1
194-(vi) Lotteries, charitable gaming, games of chance, bingo games, raffles, and pull-tab 2
195-lottery tickets, to the extent permitted and regulated pursuant to chapter 19 of title 11. 3
196-(12) "iGaming game vendor" means any entity authorized to provide online slot games and 4
197-online table games, as approved by the Division in connection with iGaming, on the Division's 5
198-behalf in accordance with this chapter, such online slot games and online table games being games 6
199-owned or licensed by the iGaming game vendor (or by an entity controlling, controlled by or under 7
200-common control with such entity) or games owned or licensed by a third party, that (in either case) 8
201-are licensed to the iGaming game vendor for sublicense to the Division as authorized by the 9
202-Division. 10
203-(13) "iGaming platform vendor" means an entity that operates a hosting facility (or by an 11
204-entity controlling, controlled by or under common control with such an entity) and that is authorized 12
205-by the Division to conduct iGaming on the Division's behalf in accordance with this chapter. 13
206-(11)(14) "IGT" means IGT Global Solutions Corporation, a Delaware corporation. 14
207-(12)(15) "Licensed video lottery retailer" means a pari-mutuel licensee specifically 15
208-licensed by the Director subject to the approval of the Division to become a licensed video lottery 16
209-retailer. 17
210-(13)(16) "Lincoln gaming facility" means the gaming and entertainment facility located at 18
211-100 Twin River Road in the town of Lincoln, Rhode Island (sometimes referred to as "Twin River" 19
212-or the "Twin River gaming facility"). 20
213-(14)(17) "Marketing Year" means the fiscal year of the state. 21
214-(15)(18) "Net table-game revenue" means win from table games minus counterfeit 22
215-currency. 23
216-(16)(19) "Net terminal income" means currency placed into a Video Lottery Terminal less 24
217-credits redeemed for cash by players. 25
218-(17)(20) "Newport Grand" means Newport Grand, LLC, a Rhode Island limited-liability 26
219-company, successor to Newport Grand Jai Alai, LLC, and each permitted successor to and assignee 27
220-of Newport Grand, LLC under the Newport Grand Master Contract, including, without limitation, 28
221-Premier (as defined in subsection (25) of this section) and/or Twin River-Tiverton (as defined in 29
222-subsection (40) of this section) provided it is a pari-mutuel licensee (as defined in this section); 30
223-provided, further, however, where the context indicates that the term is referring to the physical 31
224-facility, then it shall mean the gaming and entertainment facility located at 150 Admiral Kalbfus 32
225-Road, Newport, Rhode Island. 33
226-(18)(21) "Newport Grand Marketing Year" means each fiscal year of the state or a portion 34
192+LC002885/SUB A - Page 6 of 20
193+vendor or iGaming game vendor, for which the iGaming platform vendor or iGaming game vendor 1
194+can demonstrate that it or its affiliate has not been reimbursed in cash. 2
195+(30) "Online table game" means a casino-style table game authorized by the Division 3
196+within the scope of the term iGaming, where such, games are conducted by one or more live persons 4
197+and made available to players through use of the Internet through computers, mobile applications 5
198+on mobile devices, or other interactive devices approved by the Division, which wagers are 6
199+accepted by a server-based gaming system located at the premises of a hosting facility and played 7
200+with the digital representation of cards, dice or equipment. 8
201+(31) "Online table gaming revenue" means: 9
202+(i) The total of cash or cash equivalents received from the operation of online table games 10
203+minus the total of: 11
204+(A) Cash or cash equivalents paid to players as a result of the operation of online table 12
205+games; 13
206+(B) Marketing expenses related to online table games as agreed to by the Division and the 14
207+iGaming platform vendor, as approved by the Division; and 15
208+(C) Any federal excise taxes (if applicable). 16
209+(ii) The term does not include any of the following: 17
210+(A) Counterfeit cash; 18
211+(B) Coins or currency of other countries received as a result of the operation of online table 19
212+games, except to the extent that the coins or currency are readily convertible to cash; 20
213+(C) Cash taken in a fraudulent act perpetrated against the iGaming platform vendor or 21
214+iGaming game vendor for which the iGaming platform vendor or iGaming game vendor is not 22
215+reimbursed; 23
216+(D) Free play provided by the iGaming platform vendor or iGaming game vendor as 24
217+authorized by the Division to a player and subsequently "won back" by the iGaming platform 25
218+vendor or iGaming game vendor, for which the iGaming platform vendor or iGaming game vendor 26
219+can demonstrate that it or its affiliate has not been reimbursed in cash. 27
220+(21)(32) “Online sports wagering” means engaging in the act of sports wagering by the 28
221+placing of wagers on sporting events or a combination of sporting events, or on the individual 29
222+performance statistics of athletes in a sporting event or a combination of sporting events, over the 30
223+internet through computers, mobile applications on mobile devices or other interactive devices 31
224+approved by the Division, which wagers are accepted by a server-based gaming system located at 32
225+the premises of a hosting facility authorized to accept sports wagers and administer payoffs of 33
226+winning sports wagers; all such wagers shall be deemed to be placed and accepted at the premises 34
227227
228228
229-LC002885/SUB B/2 - Page 7 of 20
230-thereof between November 23, 2010, and the termination date of the Newport Grand Master 1
231-Contract. 2
232-(19)(22) "Newport Grand Master Contract" means that certain master video lottery 3
233-terminal contract made as of November 23, 2005, by and between the division of lotteries of the 4
234-Rhode Island department of administration and Newport Grand, as amended and extended from 5
235-time to time as authorized therein and/or as such Newport Grand Master Contract may be assigned 6
236-as permitted therein. 7
237-(20)(23) "Online gaming account" means an account opened by a patron that such patron 8
238-shall use for the deposit and withdrawal of funds used for online sports wagering, iGaming, or both. 9
239-An online gaming account may be used for both online sports wagering conducted under § 42-61.2-10
240-2.4 and iGaming, only if the patron is over twenty-one (21) years of age. A patron under the age of 11
241-twenty-one (21) is prohibited from having or using an online gaming account for iGaming. 12
242-(24) "Online slot game" means an online slot-machine-like game authorized by the 13
243-Division within the scope of the term iGaming. Online slot games include, but are not limited to, 14
244-online games involving digital versions of spinning reels or pay lines, and may include: 15
245-(i) An auto play feature; 16
246-(ii) An adjustable bet feature; 17
247-(iii) A random number generator to determine the game outcome; and 18
248-(iv) Games that can be played infinitely, using a nondepleting prize pool, offer prizes that 19
249-are all available with every play, and have odds that remain the same with every play. 20
250-(25) "Online slot gaming revenue" means: 21
251-(i) The total of cash or cash equivalents received from the operation of online slot games 22
252-minus the total of: 23
253-(A) Cash or cash equivalents paid to players as a result of the operation of online slot 24
254-games; 25
255-(B) Marketing expenses related to online slot games as agreed to by the Division, the 26
256-iGaming game vendor, and the iGaming platform vendor, as approved by the Division; and 27
257-(C) Any federal excise taxes (if applicable). 28
258-(ii) The term does not include any of the following: 29
259-(A) Counterfeit cash; 30
260-(B) Coins or currency of other countries received as a result of the operation of online slot 31
261-games, except to the extent that the coins or currency are readily convertible to cash; 32
262-(C) Cash taken in a fraudulent act perpetrated against the iGaming platform vendor or 33
263-iGaming game vendor, for which the iGaming platform vendor or iGaming game vendor is not 34
229+LC002885/SUB A - Page 7 of 20
230+of a such hosting facility. 1
231+(22)(33) “Online sports-wagering revenue” means: 2
232+(i) The total of cash or cash equivalents received from online sports wagering minus the 3
233+total of: 4
234+(I) Cash or cash equivalents paid to players as a result of online sports wagering; 5
235+(II) Marketing expenses related to online sports wagering as agreed to by the Division, the 6
236+sports-wagering vendor, and the host facilities, as approved by the Division; and 7
237+(III) Any federal excise taxes (if applicable). 8
238+(ii) The term does not include any of the following: 9
239+(I) Counterfeit cash. 10
240+(II) Coins or currency of other countries received as a result of online sports wagering, 11
241+except to the extent that the coins or currency are readily convertible to cash. 12
242+(III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports-wagering 13
243+vendor for which the hosting facility or sports-wagering vendor is not reimbursed. 14
244+(IV) Free play provided by the hosting facility or sports-wagering vendor as authorized by 15
245+the Division to a player and subsequently “won back” by the hosting facility or sports-wagering 16
246+vendor, for which the hosting facility or sports-wagering vendor can demonstrate that it or its 17
247+affiliate has not been reimbursed in cash. 18
248+(23)(34) “Pari-mutuel licensee” means: 19
249+(i) An entity licensed pursuant to § 41-3.1-3; and/or and 20
250+(ii) An entity licensed pursuant to § 41-7-3. 21
251+(24)(35) “Payoff,” when used in connection with sports wagering, means cash or cash 22
252+equivalents paid to a player as a result of the player’s winning a sports wager. A “payoff” is a type 23
253+of “prize,” as the term “prize” is used in chapters 61, 61.2, and 61.3 of this title. 24
254+(36) “Person” means a natural person, corporation, limited liability company, partnership 25
255+(general or limited), joint venture, estate, trust or unincorporated association; any federal, state, 26
256+county, or municipal government or any bureau, department or agency thereof; any fiduciary acting 27
257+in such capacity, on behalf of any of the foregoing; or any other legal or business entity or 28
258+organization. 29
259+(25)(37) “Premier” means Premier Entertainment II, LLC and/or and its successor in 30
260+interest by reason of the acquisition of the stock, membership interests, or substantially all of the 31
261+assets of such entity. 32
262+(26)(38) “Prior marketing year,” means, with respect to a marketing year, the most recent 33
263+previous marketing year during which the Division operated a majority of the authorized video 34
264264
265265
266-LC002885/SUB B/2 - Page 8 of 20
267-reimbursed; 1
268-(D) Free play provided by the iGaming platform vendor or iGaming game vendor as 2
269-authorized by the Division to a player and subsequently "won back" by the iGaming platform 3
270-vendor or iGaming game vendor, for which the iGaming platform vendor or iGaming game vendor 4
271-can demonstrate that it or its affiliate has not been reimbursed in cash. 5
272-(21)(26) "Online sports wagering" means engaging in the act of sports wagering by the 6
273-placing of wagers on sporting events or a combination of sporting events, or on the individual 7
274-performance statistics of athletes in a sporting event or a combination of sporting events, over the 8
275-internet through computers, mobile applications on mobile devices or other interactive devices 9
276-approved by the Division, which wagers are accepted by a server-based gaming system located at 10
277-the premises of a hosting facility authorized to accept sports wagers and administer payoffs of 11
278-winning sports wagers; all such wagers shall be deemed to be placed and accepted at the premises 12
279-of a such hosting facility. 13
280-(22)(27) "Online sports-wagering revenue" means: 14
281-(i) The total of cash or cash equivalents received from online sports wagering minus the 15
282-total of: 16
283-(I) Cash or cash equivalents paid to players as a result of online sports wagering; 17
284-(II) Marketing expenses related to online sports wagering as agreed to by the Division, the 18
285-sports-wagering vendor, and the host facilities, as approved by the Division; and 19
286-(III) Any federal excise taxes (if applicable). 20
287-(ii) The term does not include any of the following: 21
288-(I) Counterfeit cash. 22
289-(II) Coins or currency of other countries received as a result of online sports wagering, 23
290-except to the extent that the coins or currency are readily convertible to cash. 24
291-(III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports-wagering 25
292-vendor for which the hosting facility or sports-wagering vendor is not reimbursed. 26
293-(IV) Free play provided by the hosting facility or sports-wagering vendor as authorized by 27
294-the Division to a player and subsequently "won back" by the hosting facility or sports-wagering 28
295-vendor, for which the hosting facility or sports-wagering vendor can demonstrate that it or its 29
296-affiliate has not been reimbursed in cash. 30
297-(28) "Online table game" means a casino-style table game authorized by the Division 31
298-within the scope of the term iGaming, where such games are conducted by one or more live persons 32
299-and made available to players through use of the Internet through computers, mobile applications 33
300-on mobile devices, or other interactive devices approved by the Division, which wagers are 34
266+LC002885/SUB A - Page 8 of 20
267+lottery games at each of the Lincoln gaming facility and the Tiverton gaming facility for at least 1
268+360 days (or 361 days in the case there are 366 days in such marketing year). For the avoidance of 2
269+doubt, because the Division will not have operated a majority of the authorized video lottery games 3
270+at the Lincoln gaming facility and at the Tiverton gaming facility for at least 361 days during the 4
271+marketing year expiring on June 30, 2020, the prior marketing year with respect to the marketing 5
272+year expiring on June 30, 2021, shall be the marketing year expiring on June 30, 2019. 6
273+(27)(39) “Promotional points” has the meaning given such term in the 2017 Budget Act. 7
274+(28)(40) “Rake” means a set fee or percentage of cash and chips representing cash wagered 8
275+in the playing of a nonbanking table game assessed by a table games retailer for providing the 9
276+services of a dealer, gaming table, or location, to allow the play of any nonbanking table game. 10
277+(29)(41) “Server-based gaming system” means all hardware, software, and 11
278+communications devices that comprise a system utilized for the purpose of offering an electronic 12
279+platform used in connection with the process of placing and accepting sports wagers and/or 13
280+iGaming wagers (as applicable). 14
281+(30)(42) “Sporting event” means any professional sport or athletic event, any Olympic or 15
282+international sports competition event, and any collegiate sport or athletic event, or any portion 16
283+thereof, including, but not limited to, the individual performance statistics of athletes in a sports 17
284+event or combination of sports events, except “sporting event” shall not include a prohibited 18
285+sporting event. 19
286+(31)(43) “Sports wagering” means the business of accepting wagers on sporting events or 20
287+a combination of sporting events, or on the individual performance statistics of athletes in a sporting 21
288+event or combination of sporting events, by any system or method of wagering. The term includes, 22
289+but is not limited to, exchange wagering, parlays, over-under, moneyline, pools, and straight bets, 23
290+and the term includes the placement of such bets and wagers. However, the term does not include, 24
291+without limitation, the following: 25
292+(i) Lotteries, including video lottery games and other types of casino gaming operated by 26
293+the state, through the Division, as of June 22, 2018. 27
294+(ii) Pari-mutuel betting on the outcome of thoroughbred or harness horse racing, or 28
295+greyhound dog racing, including but not limited to, pari-mutuel wagering on a race that is 29
296+“simulcast” (as defined in § 41-11-1), as regulated elsewhere pursuant to the general laws, 30
297+including in chapters 3, 3.1, 4, and 11 of title 41. 31
298+(iii) Off-track betting on racing events, as regulated elsewhere pursuant to the general laws, 32
299+including in chapter 10 of title 41. 33
300+(iv) Wagering on the respective scores or points of the game of jai alai or pelota and the 34
301301
302302
303-LC002885/SUB B/2 - Page 9 of 20
304-accepted by a server-based gaming system located at the premises of a hosting facility and played 1
305-with the digital representation of cards, dice or equipment 2
306-(29) "Online table gaming revenue" means: 3
307-(i) The total of cash or cash equivalents received from the operation of online table games 4
308-minus the total of: 5
309-(A) Cash or cash equivalents paid to players as a result of the operation of online table 6
310-games; 7
311-(B) Marketing expenses related to online table games as agreed to by the Division and the 8
312-iGaming platform vendor, as approved by the Division; and 9
313-(C) Any federal excise taxes (if applicable). 10
314-(ii) The term does not include any of the following: 11
315-(A) Counterfeit cash; 12
316-(B) Coins or currency of other countries received as a result of the operation of online table 13
317-games, except to the extent that the coins or currency are readily convertible to cash; 14
318-(C) Cash taken in a fraudulent act perpetrated against the iGaming platform vendor or 15
319-iGaming game vendor for which the iGaming platform vendor or iGaming game vendor is not 16
320-reimbursed; 17
321-(D) Free play provided by the iGaming platform vendor or iGaming game vendor as 18
322-authorized by the Division to a player and subsequently "won back" by the iGaming platform 19
323-vendor or iGaming game vendor, for which the iGaming platform vendor or iGaming game vendor 20
324-can demonstrate that it or its affiliate has not been reimbursed in cash. 21
325-(23)(30) "Pari-mutuel licensee" means: 22
326-(i) An entity licensed pursuant to § 41-3.1-3; and/or and 23
327-(ii) An entity licensed pursuant to § 41-7-3. 24
328-(24)(31) "Payoff," when used in connection with sports wagering, means cash or cash 25
329-equivalents paid to a player as a result of the player's winning a sports wager. A "payoff" is a type 26
330-of "prize," as the term "prize" is used in chapters 61, 61.2, and 61.3 of this title. 27
331-(25)(32) "Premier" means Premier Entertainment II, LLC and/or and its successor in 28
332-interest by reason of the acquisition of the stock, membership interests, or substantially all of the 29
333-assets of such entity. 30
334-(26)(33) "Prior marketing year," means, with respect to a marketing year, the most recent 31
335-previous marketing year during which the Division operated a majority of the authorized video 32
336-lottery games at each of the Lincoln gaming facility and the Tiverton gaming facility for at least 33
337-360 days (or 361 days in the case there are 366 days in such marketing year). For the avoidance of 34
303+LC002885/SUB A - Page 9 of 20
304+sale of pari-mutuel pools related to such games, as regulated elsewhere pursuant to the general 1
305+laws, including in chapter 7 of title 41. 2
306+(v) Lotteries, charitable gaming, games of chance, bingo games, raffles, and pull-tab lottery 3
307+tickets, to the extent permitted and regulated pursuant to chapter 19 of title 11. 4
308+(vi) iGaming (as defined in this section). 5
309+(32)(44) “Sports-wagering device” means any mechanical, electrical, or computerized 6
310+contrivance, terminal, machine, or other device, apparatus, equipment, or supplies approved by the 7
311+Division and used to conduct sports wagering. 8
312+(33)(45) “Sports-wagering revenue” means: 9
313+(i) The total of cash or cash equivalents received from sports wagering minus the total of: 10
314+(I) Cash or cash equivalents paid to players as a result of sports wagering; 11
315+(II) The annual flat fee to the host communities as defined by § 42-61.2-5(c); 12
316+(III) Marketing expenses related to sports wagering as agreed to by the Division, the sports-13
317+wagering vendor, and the host facilities, as approved by the Division; and 14
318+(IV) Any federal excise taxes (if applicable). 15
319+(ii) The term does not include any of the following: 16
320+(I) Counterfeit cash. 17
321+(II) Coins or currency of other countries received as a result of sports wagering, except to 18
322+the extent that the coins or currency are readily convertible to cash. 19
323+(III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports-wagering 20
324+vendor for which the hosting facility or sports-wagering vendor is not reimbursed. 21
325+(IV) Free play provided by the hosting facility or sports-wagering vendor as authorized by 22
326+the Division to a patron and subsequently “won back” by the hosting facility or sports-wagering 23
327+vendor, for which the hosting facility or sports-wagering vendor can demonstrate that it or its 24
328+affiliate has not been reimbursed in cash. 25
329+(34)(46) “Sports-wagering vendor” means any entity authorized by the Division to operate 26
330+sports betting on the Division’s behalf in accordance with this chapter. 27
331+(35)(47) “Table game” or “Table gaming” means that type of casino gaming in which table 28
332+games are played for cash or chips representing cash, or any other representation of value that has 29
333+been approved by the Division, using cards, dice, or equipment and conducted by one or more live 30
334+persons. 31
335+(36)(48) “Table-game retailer” means a retailer authorized to conduct table gaming 32
336+pursuant to § 42-61.2-2.1 or § 42-61.2-2.3. 33
337+(37)(49) “Technology provider” means any individual, partnership, corporation, or 34
338338
339339
340-LC002885/SUB B/2 - Page 10 of 20
341-doubt, because the Division will not have operated a majority of the authorized video lottery games 1
342-at the Lincoln gaming facility and at the Tiverton gaming facility for at least 361 days during the 2
343-marketing year expiring on June 30, 2020, the prior marketing year with respect to the marketing 3
344-year expiring on June 30, 2021, shall be the marketing year expiring on June 30, 2019. 4
345-(27)(34) "Promotional points" has the meaning given such term in the 2017 Budget Act. 5
346-(28)(35) "Rake" means a set fee or percentage of cash and chips representing cash wagered 6
347-in the playing of a nonbanking table game assessed by a table games retailer for providing the 7
348-services of a dealer, gaming table, or location, to allow the play of any nonbanking table game. 8
349-(29)(36) "Server-based gaming system" means all hardware, software, and 9
350-communications devices that comprise a system utilized for the purpose of offering an electronic 10
351-platform used in connection with the process of placing and accepting sports wagers and/or 11
352-iGaming wagers (as applicable). 12
353-(30)(37) "Sporting event" means any professional sport or athletic event, any Olympic or 13
354-international sports competition event, and any collegiate sport or athletic event, or any portion 14
355-thereof, including, but not limited to, the individual performance statistics of athletes in a sports 15
356-event or combination of sports events, except "sporting event" shall not include a prohibited 16
357-sporting event. 17
358-(31)(38) "Sports wagering" means the business of accepting wagers on sporting events or 18
359-a combination of sporting events, or on the individual performance statistics of athletes in a sporting 19
360-event or combination of sporting events, by any system or method of wagering. The term includes, 20
361-but is not limited to, exchange wagering, parlays, over-under, moneyline, pools, and straight bets, 21
362-and the term includes the placement of such bets and wagers. However, the term does not include, 22
363-without limitation, the following: 23
364-(i) Lotteries, including video lottery games and other types of casino gaming operated by 24
365-the state, through the Division, as of June 22, 2018. 25
366-(ii) Pari-mutuel betting on the outcome of thoroughbred or harness horse racing, or 26
367-greyhound dog racing, including but not limited to, pari-mutuel wagering on a race that is 27
368-"simulcast" (as defined in § 41-11-1), as regulated elsewhere pursuant to the general laws, including 28
369-in chapters 3, 3.1, 4, and 11 of title 41. 29
370-(iii) Off-track betting on racing events, as regulated elsewhere pursuant to the general laws, 30
371-including in chapter 10 of title 41. 31
372-(iv) Wagering on the respective scores or points of the game of jai alai or pelota and the 32
373-sale of pari-mutuel pools related to such games, as regulated elsewhere pursuant to the general 33
374-laws, including in chapter 7 of title 41. 34
340+LC002885/SUB A - Page 10 of 20
341+association that designs, manufactures, installs, maintains, distributes, or supplies Video Lottery 1
342+Terminals or associated equipment for the sale or use in this state. 2
343+(38)(50) “Tiverton gaming facility” means the gaming and entertainment facility located 3
344+at the intersection of William S. Canning Boulevard and Stafford Road in the town of Tiverton, 4
345+Rhode Island (sometimes referred to as “Twin River-Tiverton”). 5
346+(39)(51) “Twin River” (sometimes referred to as “UTGR”) means UTGR, Inc., a Delaware 6
347+corporation, and each permitted successor to and assignee of UTGR, Inc.; provided, however, 7
348+where the context indicates that the term is referring to a physical facility, then “Twin River” shall 8
349+mean the Lincoln gaming facility. 9
350+(40)(52) “Twin River-Tiverton” means Twin River-Tiverton, LLC and/or and its successor 10
351+in interest by reason of the acquisition of the stock, membership interests, or substantially all of the 11
352+assets of such entity; provided, however, where the context indicates that the term is referring to a 12
353+physical facility, then “Twin River-Tiverton” shall mean the Tiverton gaming facility. 13
354+(41)(53) “Twin River-Tiverton Marketing Year” has the same meaning as Marketing Year 14
355+(as defined in subsection (14) of this section). 15
356+(42)(54) “Twin River-Tiverton Master Contract” has the same meaning as Newport Grand 16
357+Master Contract (as defined in subsection (19) of this section). 17
358+(43)(55) “UTGR Master Contract” means that certain master video lottery terminal 18
359+contract made as of July 1, 2005, by and between the division of lotteries of the Rhode Island 19
360+department of administration (now the division of lotteries of the Rhode Island department of 20
361+revenue) and Twin River, as amended and extended from time to time as authorized therein and/or 21
362+and as such UTGR Master Contract may be assigned as permitted therein. 22
363+(44)(56) “Video Lottery Agreement” means that certain Video Lottery Central Computer 23
364+System Agreement dated as of December 20, 2001, by and between IGT and the Division, as 24
365+amended, extended, assigned, and assumed from time to time. 25
366+(45)(57) “Video lottery games” means lottery games played on Video Lottery Terminals 26
367+controlled by the Division. 27
368+(46)(58) “Video lottery terminal” means any electronic computerized video game machine 28
369+that, upon the insertion of cash or any other representation of value that has been approved by the 29
370+Division, is available to play a video game authorized by the Division, and that uses a video display 30
371+and microprocessors in which, by chance, the player may receive free games or credits that can be 31
372+redeemed for cash. The term does not include a machine that directly dispenses coins, cash, or 32
373+tokens. 33
374+(47)(59) “VLT Agreement” means that certain Video Lottery Terminal Technology 34
375375
376376
377-LC002885/SUB B/2 - Page 11 of 20
378-(v) Lotteries, charitable gaming, games of chance, bingo games, raffles, and pull-tab lottery 1
379-tickets, to the extent permitted and regulated pursuant to chapter 19 of title 11. 2
380-(iv) iGaming (as defined in this section). 3
381-(32)(39) "Sports-wagering device" means any mechanical, electrical, or computerized 4
382-contrivance, terminal, machine, or other device, apparatus, equipment, or supplies approved by the 5
383-Division and used to conduct sports wagering. 6
384-(33)(40) "Sports-wagering revenue" means: 7
385-(i) The total of cash or cash equivalents received from sports wagering minus the total of: 8
386-(I) Cash or cash equivalents paid to players as a result of sports wagering; 9
387-(II) The annual flat fee to the host communities as defined by § 42-61.2-5(c); 10
388-(III) Marketing expenses related to sports wagering as agreed to by the Division, the sports-11
389-wagering vendor, and the host facilities, as approved by the Division; and 12
390-(IV) Any federal excise taxes (if applicable). 13
391-(ii) The term does not include any of the following: 14
392-(I) Counterfeit cash. 15
393-(II) Coins or currency of other countries received as a result of sports wagering, except to 16
394-the extent that the coins or currency are readily convertible to cash. 17
395-(III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports-wagering 18
396-vendor for which the hosting facility or sports-wagering vendor is not reimbursed. 19
397-(IV) Free play provided by the hosting facility or sports-wagering vendor as authorized by 20
398-the Division to a patron and subsequently "won back" by the hosting facility or sports-wagering 21
399-vendor, for which the hosting facility or sports-wagering vendor can demonstrate that it or its 22
400-affiliate has not been reimbursed in cash. 23
401-(34)(41) "Sports-wagering vendor" means any entity authorized by the Division to operate 24
402-sports betting on the Division's behalf in accordance with this chapter. 25
403-(35)(42) "Table game" or "Table gaming" means that type of casino gaming in which table 26
404-games are played for cash or chips representing cash, or any other representation of value that has 27
405-been approved by the Division, using cards, dice, or equipment and conducted by one or more live 28
406-persons. 29
407-(36)(43) "Table-game retailer" means a retailer authorized to conduct table gaming 30
408-pursuant to § 42-61.2-2.1 or § 42-61.2-2.3. 31
409-(37)(44) "Technology provider" means any individual, partnership, corporation, or 32
410-association that designs, manufactures, installs, maintains, distributes, or supplies Video Lottery 33
411-Terminals or associated equipment for the sale or use in this state. 34
377+LC002885/SUB A - Page 11 of 20
378+Provider License Agreement dated as of September 28, 2000, by and between IGT and the Division, 1
379+as amended, extended, assigned, and assumed from time to time. 2
380+(60) "VLT Joint Venture" means Rhode Island VLT Company LLC, a Delaware limited 3
381+liability company, the current members of which are IGT, Twin River and Twin River-Tiverton 4
382+42-61.2-4. Additional powers and duties of director and lottery division. 5
383+In addition to the powers and duties set forth in §§ 42-61-4 and 42-61.2-3, the director shall 6
384+have the power to: 7
385+(1) Supervise and administer the operation of video lottery games and, sports wagering, 8
386+and iGaming in accordance with this chapter and with the rules and regulations of the division; 9
387+(2) Suspend or revoke upon a hearing any license issued pursuant to this chapter or the 10
388+rules and regulations promulgated under this chapter; 11
389+(3) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the 12
390+operation of a central communications system and technology providers, or any part thereof; 13
391+(4) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the 14
392+provision of sports-wagering systems, facilities, and related technology necessary or and/or 15
393+desirable for the state-operated sports wagering to be hosted at Twin River and the Tiverton gaming 16
394+facilities, including technology related to the operation of on-premises remote sports wagering, or 17
395+any part thereof; 18
396+(5) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the 19
397+provision of server-based gaming systems, facilities, and related technology necessary and/or or 20
398+desirable for the state-operated online sports wagering; and 21
399+(6) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the 22
400+provision of services and technology necessary or desirable for state-operated iGaming; and 23
401+(6)(7) Certify monthly to the budget officer, the auditor general, the permanent joint 24
402+committee on state lottery, and to the governor a full and complete statement of lottery revenues, 25
403+prize disbursements, and other expenses for the preceding month; ensure that monthly financial 26
404+reports are prepared providing gross monthly revenues, prize disbursements, other expenses, and 27
405+net income for keno and for all other lottery operations; submit this report to the state budget officer, 28
406+the auditor general, the permanent joint committee on state lottery, the legislative fiscal advisors, 29
407+and the governor no later than the twentieth business day following the close of the month; at the 30
408+end of each fiscal year the director shall submit an annual report based upon an accrual system of 31
409+accounting that shall include a full and complete statement of lottery revenues, prize disbursements, 32
410+and expenses, to the governor and the general assembly, which report shall be a public document 33
411+and shall be filed with the secretary of state. The monthly report shall be prepared in a manner 34
412412
413413
414-LC002885/SUB B/2 - Page 12 of 20
415-(38)(45) "Tiverton gaming facility" means the gaming and entertainment facility located at 1
416-the intersection of William S. Canning Boulevard and Stafford Road in the town of Tiverton, Rhode 2
417-Island (sometimes referred to as "Twin River-Tiverton"). 3
418-(39)(46) "Twin River" (sometimes referred to as "UTGR") means UTGR, Inc., a Delaware 4
419-corporation, and each permitted successor to and assignee of UTGR, Inc.; provided, however, 5
420-where the context indicates that the term is referring to a physical facility, then "Twin River" shall 6
421-mean the Lincoln gaming facility. 7
422-(40)(47) "Twin River-Tiverton" means Twin River-Tiverton, LLC and/or and its successor 8
423-in interest by reason of the acquisition of the stock, membership interests, or substantially all of the 9
424-assets of such entity; provided, however, where the context indicates that the term is referring to a 10
425-physical facility, then "Twin River-Tiverton" shall mean the Tiverton gaming facility. 11
426-(41)(48) "Twin River-Tiverton Marketing Year" has the same meaning as Marketing Year 12
427-(as defined in subsection (14) of this section). 13
428-(42)(49) "Twin River-Tiverton Master Contract" has the same meaning as Newport Grand 14
429-Master Contract (as defined in subsection (19) of this section). 15
430-(43)(50) "UTGR Master Contract" means that certain master video lottery terminal contract 16
431-made as of July 1, 2005, by and between the division of lotteries of the Rhode Island department 17
432-of administration (now the division of lotteries of the Rhode Island department of revenue) and 18
433-Twin River, as amended and extended from time to time as authorized therein and/or and as such 19
434-UTGR Master Contract may be assigned as permitted therein. 20
435-(44)(51) "Video Lottery Agreement" means that certain Video Lottery Central Computer 21
436-System Agreement dated as of December 20, 2001, by and between IGT and the Division, as 22
437-amended, extended, assigned, and assumed from time to time. 23
438-(45)(52) "Video lottery games" means lottery games played on Video Lottery Terminals 24
439-controlled by the Division. 25
440-(46)(53) "Video lottery terminal" means any electronic computerized video game machine 26
441-that, upon the insertion of cash or any other representation of value that has been approved by the 27
442-Division, is available to play a video game authorized by the Division, and that uses a video display 28
443-and microprocessors in which, by chance, the player may receive free games or credits that can be 29
444-redeemed for cash. The term does not include a machine that directly dispenses coins, cash, or 30
445-tokens. 31
446-(47)(54) "VLT Agreement" means that certain Video Lottery Terminal Technology 32
447-Provider License Agreement dated as of September 28, 2000, by and between IGT and the Division, 33
448-as amended, extended, assigned, and assumed from time to time. 34
414+LC002885/SUB A - Page 12 of 20
415+prescribed by the members of the revenue estimating conference. 1
416+42-61.2-6. When games may be played. 2
417+(a) Video lottery games authorized by this chapter may be played at the licensed video 3
418+lottery retailer’s facilities with the approval of the division, even if that facility is not conducting a 4
419+pari-mutuel event. 5
420+(b) Sports wagering authorized by this chapter, including accepting sports wagers and 6
421+administering payoffs of winning sports wagers, may be conducted at the Twin River and the 7
422+Tiverton gaming facilities, with the approval of the division, even if that facility is not conducting 8
423+a pari-mutuel event. 9
424+(c) Casino gaming (including iGaming) authorized by this chapter and including accepting 10
425+wagers and administering payoffs of winning wagers on casino gaming, online slot games and 11
426+online table games, may be conducted at the Twin River and the Tiverton gaming facilities, with 12
427+the approval of the Division, even if that facility is not conducting a pari-mutuel event. 13
428+42-61.2-9. Unclaimed prize money, including unclaimed sports-wagering payoffs. 14
429+Unclaimed prize money for prizes in connection with the play of a video lottery game, 15
430+iGaming game, and an unclaimed payoff in connection with a sports wager shall be retained by the 16
431+director for the person entitled thereto for one year after, respectively, the completion of the 17
432+applicable video lottery game, iGaming game, or the determination of the result of the sporting 18
433+event that was the subject of the applicable sports wager. If no claim is made for the prize money 19
434+or payoff within that year, the prize money or payoff shall automatically revert to the lottery fund 20
435+and the winner shall have no claim thereto. 21
436+42-61.2-11. Effect of other laws and local ordinances. 22
437+(a) No other law providing any penalty or disability for operating, hosting, maintaining, 23
438+supporting, or playing video lottery games, or any acts done in connection with video lottery games, 24
439+shall apply to operating, hosting, maintaining, supporting, or playing video lottery games pursuant 25
440+to this chapter. 26
441+(b) No other law providing any penalty or disability for conducting, hosting, maintaining, 27
442+supporting, or participating in sports wagering, or any acts done in connection with sports wagering, 28
443+shall apply to conducting, hosting, maintaining, supporting, or participating in sports wagering 29
444+pursuant to this chapter. 30
445+(c) No other law providing any penalty or disability for conducting, hosting, maintaining, 31
446+supporting, or participating in casino gaming, including iGaming, or any acts done in connection 32
447+with casino gaming, including iGaming, shall apply to conducting, hosting, maintaining, 33
448+supporting, or participating in casino gaming, including iGaming pursuant to this chapter. 34
449449
450450
451-LC002885/SUB B/2 - Page 13 of 20
452-42-61.2-4. Additional powers and duties of director and lottery division. 1
453-In addition to the powers and duties set forth in §§ 42-61-4 and 42-61.2-3, the director shall 2
454-have the power to: 3
455-(1) Supervise and administer the operation of video lottery games and, sports wagering, 4
456-and iGaming in accordance with this chapter and with the rules and regulations of the division; 5
457-(2) Suspend or revoke upon a hearing any license issued pursuant to this chapter or the 6
458-rules and regulations promulgated under this chapter; 7
459-(3) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the 8
460-operation of a central communications system and technology providers, or any part thereof; 9
461-(4) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the 10
462-provision of sports-wagering systems, facilities, and related technology necessary and/or desirable 11
463-for the state-operated sports wagering to be hosted at Twin River and the Tiverton gaming facilities, 12
464-including technology related to the operation of on-premises remote sports wagering, or any part 13
465-thereof; 14
466-(5) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the 15
467-provision of server-based gaming systems, facilities, and related technology necessary and/or or 16
468-desirable for the state-operated online sports wagering; and 17
469-(6) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the 18
470-provision of services and technology necessary or desirable for state-operated iGaming; 19
471-(6)(7) Certify monthly to the budget officer, the auditor general, the permanent joint 20
472-committee on state lottery, and to the governor a full and complete statement of lottery revenues, 21
473-prize disbursements, and other expenses for the preceding month; ensure that monthly financial 22
474-reports are prepared providing gross monthly revenues, prize disbursements, other expenses, and 23
475-net income for keno and for all other lottery operations; submit this report to the state budget officer, 24
476-the auditor general, the permanent joint committee on state lottery, the legislative fiscal advisors, 25
477-and the governor no later than the twentieth business day following the close of the month; at the 26
478-end of each fiscal year the director shall submit an annual report based upon an accrual system of 27
479-accounting that shall include a full and complete statement of lottery revenues, prize disbursements, 28
480-and expenses, to the governor and the general assembly, which report shall be a public document 29
481-and shall be filed with the secretary of state. The monthly report shall be prepared in a manner 30
482-prescribed by the members of the revenue estimating conference. 31
483-42-61.2-6. When games may be played. 32
484-(a) Video lottery games authorized by this chapter may be played at the licensed video 33
485-lottery retailer's facilities with the approval of the division, even if that facility is not conducting a 34
451+LC002885/SUB A - Page 13 of 20
452+(c)(d) The provisions of §§ 41-9-4 and 41-9-6 shall not apply to this chapter, and the 1
453+provisions of this chapter shall take precedence over any local ordinances to the contrary. It is 2
454+specifically acknowledged that the installation, operation, and use of video lottery terminals by a 3
455+pari-mutuel licensee, as authorized in this chapter, shall for all purposes be deemed a permitted use 4
456+as defined in § 45-24-31. No city or town where video lottery terminals are authorized may seek to 5
457+prevent the installation and use of said video lottery terminals by defining such as a prohibited use. 6
458+42-61.2-14. Compulsive and problem gambling programs. 7
459+The Division and the state acknowledge that the vast majority of gaming patrons can enjoy 8
460+gambling games responsibly, but that there are certain societal costs associated with gaming by 9
461+some individuals who have problems handling the product or services provided. The Division and 10
462+the State further understand that it is their duty to act responsibly toward those who cannot 11
463+participate conscientiously in gaming. Pursuant to the foregoing, Twin River and Twin River-12
464+Tiverton, in cooperation with the State, shall offer compulsive and problem gambling programs 13
465+that include, but are not limited to (a) Problem gambling awareness programs for employees; (b) 14
466+Player self-exclusion program; and (c) Promotion of a problem gambling hotline; and (d) Education 15
467+on responsible gambling and prevention of problem gambling. Twin River and Twin River-16
468+Tiverton shall modify their existing compulsive and problem gambling programs to include table 17
469+games, and sports wagering and iGaming to the extent such games are authorized at such facilities 18
470+or through the Internet or a mobile application. Twin River and Twin River-Tiverton shall 19
471+reimburse and pay to the Division no less than two hundred thousand dollars ($200,000) in 20
472+aggregate annually for compulsive and problem gambling programs established by the Division 21
473+and no less than fifty thousand dollars ($50,000) in the aggregate annually for education and 22
474+prevention programs. The contribution from each facility shall be determined by the Division. A 23
475+person who is prohibited from gaming in a gaming establishment due to the player self-exclusion 24
476+program shall not collect any winnings or recover losses arising as a result of prohibited gaming 25
477+activity by said person. Winnings from a self-excluded person, after the deduction of taxes and 26
478+other applicable withholdings, shall be forfeited to the division. The division shall forward such 27
479+forfeited winnings, up to one hundred fifty thousand dollars ($150,000) per year, to the Rhode 28
480+Island Council on Problem Gambling for its use for research, education, and prevention of teenage 29
481+gambling addiction, with the balance to be transferred by the division to the general fund. 30
482+42-61.2-15. Table game and sports-wagering hours of operation Table game, sports-31
483+wagering, and iGaming hours of operation. 32
484+(a) To the extent table games are authorized at the premises of a table-game retailer, such 33
485+table games may be offered at the premises of a table-game retailer for all or a portion of the days 34
486486
487487
488-LC002885/SUB B/2 - Page 14 of 20
489-pari-mutuel event. 1
490-(b) Sports wagering authorized by this chapter, including accepting sports wagers and 2
491-administering payoffs of winning sports wagers, may be conducted at the Twin River and the 3
492-Tiverton gaming facilities, with the approval of the division, even if that facility is not conducting 4
493-a pari-mutuel event. 5
494-(c) Casino gaming (including iGaming) authorized by this chapter and including accepting 6
495-wagers and administering payoffs of winning wagers on casino gaming, online slot games and 7
496-online table games, may be conducted at the Twin River and the Tiverton gaming facilities, with 8
497-the approval of the Division, even if that facility is not conducting a pari-mutuel event. 9
498-42-61.2-9. Unclaimed prize money, including unclaimed sports-wagering payoffs. 10
499-Unclaimed prize money for prizes in connection with the play of a video lottery game, 11
500-iGaming game, and an unclaimed payoff in connection with a sports wager shall be retained by the 12
501-director for the person entitled thereto for one year after, respectively, the completion of the 13
502-applicable video lottery game, iGaming game, or the determination of the result of the sporting 14
503-event that was the subject of the applicable sports wager. If no claim is made for the prize money 15
504-or payoff within that year, the prize money or payoff shall automatically revert to the lottery fund 16
505-and the winner shall have no claim thereto. 17
506-42-61.2-11. Effect of other laws and local ordinances. 18
507-(a) No other law providing any penalty or disability for operating, hosting, maintaining, 19
508-supporting, or playing video lottery games, or any acts done in connection with video lottery games, 20
509-shall apply to operating, hosting, maintaining, supporting, or playing video lottery games pursuant 21
510-to this chapter. 22
511-(b) No other law providing any penalty or disability for conducting, hosting, maintaining, 23
512-supporting, or participating in sports wagering, or any acts done in connection with sports wagering, 24
513-shall apply to conducting, hosting, maintaining, supporting, or participating in sports wagering 25
514-pursuant to this chapter. 26
515-(c) No other law providing any penalty or disability for conducting, hosting, maintaining, 27
516-supporting, or participating in casino gaming, including iGaming, or any acts done in connection 28
517-with casino gaming, including iGaming, shall apply to conducting, hosting, maintaining, 29
518-supporting, or participating in casino gaming, including iGaming pursuant to this chapter. 30
519-(c)(d) The provisions of §§ 41-9-4 and 41-9-6 shall not apply to this chapter, and the 31
520-provisions of this chapter shall take precedence over any local ordinances to the contrary. It is 32
521-specifically acknowledged that the installation, operation, and use of video lottery terminals by a 33
522-pari-mutuel licensee, as authorized in this chapter, shall for all purposes be deemed a permitted use 34
488+LC002885/SUB A - Page 14 of 20
489+and times that video lottery games are offered. 1
490+(b) To the extent sports wagering is authorized at the premises of a table-game retailer, 2
491+such sports wagering may be offered at the premises of such table-game retailer for all or a portion 3
492+of the days and times that video lottery games are offered. 4
493+(c) To the extent online sports wagering is authorized at a hosting facility, such online 5
494+sports wagering may be offered without any restriction on hours of operation and shall not be 6
495+limited by the days and times that video lottery games and/or or table games are offered. 7
496+(d) To the extent iGaming is authorized at a hosting facility, such iGaming may be offered 8
497+without any restriction on hours of operation and shall not be limited by the days and times that 9
498+video lottery games or table games are offered. 10
499+SECTION 3. Chapter 42-61.2 of the General Laws entitled "Video Lottery Games, Table 11
500+Games and Sports Wagering" is hereby amended by adding thereto the following sections: 12
501+42-61.2-3.4. iGaming Regulation. 13
502+In addition to the powers and duties of the Division director under §§ 42-61-4, 42-61.2-3, 14
503+42-61.2-3.1, 42-61.2-3.2, 42-61.2-3.3, and 42-61.2-4 and pursuant to §§ 42-61.2-2.1 and 42-61.2-15
504+2.3, the Division director shall promulgate rules and regulations relating to state-operated iGaming 16
505+and set policy for such gaming. Such rules and regulations shall include, but not be limited to: 17
506+(1) Standards, rules, and regulations to govern the conduct of iGaming, including, without 18
507+limitation: 19
508+(i) Procedures for investigation of patron complaints related to iGaming; 20
509+(ii) Terms and conditions for iGaming; 21
510+(iii) Internal controls for all aspects of iGaming, including procedures for system integrity, 22
511+system security, operations, accounting, and reporting of problem gamblers; 23
512+(iv) Operational controls for server-based gaming systems, software, and hardware utilized 24
513+for iGaming, including, but not limited to, appearance, functionality, contents, collection, storage, 25
514+and retention of data and security; 26
515+(v) Operational controls for online gaming accounts, including, but not limited to, 27
516+procedures for the establishment and closure of an online gaming account, funding of withdrawal 28
517+of funds from an online gaming account, age verification of patron’s online game account, and 29
518+generation of an account statement for a patron's online gaming account; and 30
519+(vi) Age restrictions for online iGaming patrons, which shall be prohibited for players who 31
520+have not reached twenty-one (21) years of age. 32
521+(2) Establishing the method for calculating online slot gaming revenue and online table 33
522+gaming revenue and standards for the daily counting and recording of cash and cash equivalents 34
523523
524524
525-LC002885/SUB B/2 - Page 15 of 20
526-as defined in § 45-24-31. No city or town where video lottery terminals are authorized may seek to 1
527-prevent the installation and use of said video lottery terminals by defining such as a prohibited use. 2
528-42-61.2-14. Compulsive and problem gambling programs. 3
529-The Division and the state acknowledge that the vast majority of gaming patrons can enjoy 4
530-gambling games responsibly, but that there are certain societal costs associated with gaming by 5
531-some individuals who have problems handling the product or services provided. The Division and 6
532-the State further understand that it is their duty to act responsibly toward those who cannot 7
533-participate conscientiously in gaming. Pursuant to the foregoing, Twin River and Twin River-8
534-Tiverton, in cooperation with the State, shall offer compulsive and problem gambling programs 9
535-that include, but are not limited to (a) Problem gambling awareness programs for employees; (b) 10
536-Player self-exclusion program; and (c) Promotion of a problem gambling hotline; and (d) Education 11
537-on responsible gambling and prevention of problem gambling. Twin River and Twin River-12
538-Tiverton shall modify their existing compulsive and problem gambling programs to include table 13
539-games, and sports wagering and iGaming to the extent such games are authorized at such facilities 14
540-or through the Internet or a mobile application. Twin River and Twin River-Tiverton shall 15
541-reimburse and pay to the Division no less than two hundred thousand dollars ($200,000) in 16
542-aggregate annually for compulsive and problem gambling programs established by the Division 17
543-and no less than fifty thousand dollars ($50,000) in the aggregate annually for education and 18
544-prevention programs. The contribution from each facility shall be determined by the Division. A 19
545-person who is prohibited from gaming in a gaming establishment due to the player self-exclusion 20
546-program shall not collect any winnings or recover losses arising as a result of prohibited gaming 21
547-activity by said person. Winnings from a self-excluded person, after the deduction of taxes and 22
548-other applicable withholdings, shall be forfeited to the division. The division shall forward such 23
549-forfeited winnings, up to one hundred fifty thousand dollars ($150,000) per year, to the Rhode 24
550-Island Council on Problem Gambling for its use for research, education, and prevention of teenage 25
551-gambling addiction, with the balance to be transferred by the division to the general fund. 26
552-42-61.2-15. Table game and sports-wagering hours of operation Table game, sports-27
553-wagering, and iGaming hours of operation. 28
554-(a) To the extent table games are authorized at the premises of a table-game retailer, such 29
555-table games may be offered at the premises of a table-game retailer for all or a portion of the days 30
556-and times that video lottery games are offered. 31
557-(b) To the extent sports wagering is authorized at the premises of a table-game retailer, 32
558-such sports wagering may be offered at the premises of such table-game retailer for all or a portion 33
559-of the days and times that video lottery games are offered. 34
525+LC002885/SUB A - Page 15 of 20
526+received in the conduct of online slot games and online table games, and ensuring that internal 1
527+controls are followed and financial books and records are maintained and audits are conducted; 2
528+(3) Requiring the iGaming platform vendor to provide written information prominently 3
529+displayed on any electronic platform available to the patron through a server-based gaming system, 4
530+regarding wagering rules, payoffs on winning wagers, deposits, withdrawals, and other information 5
531+as the Division may require; and 6
532+(4) Any other matters necessary for conducting iGaming. 7
533+42-61.2-4.1. State lottery division --iGaming. 8
534+The state, through the State Lottery Division of the Department of Revenue (the 9
535+“Division”), shall implement, operate, conduct, and control iGaming, at the Twin River and the 10
536+Twin River-Tiverton gaming facilities. In furtherance thereof, the Division is authorized to enter 11
537+into agreements with the Rhode Island Affiliates of Bally's Corporation, a Delaware corporation 12
538+(“Bally’s”), in connection with iGaming. This chapter shall be liberally construed to effectuate its 13
539+purposes. 14
540+42-61.2-4.2 Authorization and empowerment of state lottery division with respect to 15
541+the Rhode Island affiliates of Bally's. 16
542+(a) Notwithstanding any provisions of the general laws of the state or regulations adopted 17
543+thereunder to the contrary, including, without limitation, the provisions of chapter 2 of title 37, 18
544+chapter 61 of title 42, and chapter 64 of title 42, the Division is hereby authorized and empowered: 19
545+(1) To enter into a contract with the Rhode Island Affiliates of Bally’s to be the exclusive 20
546+iGaming game vendor (“iGaming Game Agreement”) under the terms and conditions set forth in 21
547+this chapter, which shall, among other matters: 22
548+(i) Provide for a term that is coterminous with the UTGR Master Contract or Twin River-23
549+Tiverton Master Contract, whichever agreement ends first; 24
550+(ii) Obligate the Rhode Island Affiliates of Bally’s to pay for an agreed upon percentage of 25
551+the payment service provider transactions fees associated with the Division’s operation of iGaming, 26
552+which shall exceed thirty-three percent (33%) of such fees and shall be set forth in the iGaming 27
553+Game Agreement; 28
554+(iii) Obligate the Rhode Island Affiliates of Bally’s to regularly update online slot games 29
555+offered to players in connection with the Division’s operation of iGaming on schedules agreed to 30
556+by the Division and set forth in the iGaming Game Agreement; 31
557+(iv) Provide the Division with the right to assess liquidated damages against Bally’s or its 32
558+Rhode Island Affiliates if any iGaming games are not available to players in accordance with this 33
559+chapter, as set forth in the iGaming Game Agreement; 34
560560
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562-LC002885/SUB B/2 - Page 16 of 20
563-(c) To the extent online sports wagering is authorized at a hosting facility, such online 1
564-sports wagering may be offered without any restriction on hours of operation and shall not be 2
565-limited by the days and times that video lottery games and/or or table games are offered. 3
566-(d) To the extent iGaming is authorized at a hosting facility, such iGaming may be offered 4
567-without any restriction on hours of operation and shall not be limited by the days and times that 5
568-video lottery games or table games are offered. 6
569-SECTION 5. Chapter 42-61.2 of the General Laws entitled "Video Lottery Games, Table 7
570-Games and Sports Wagering" is hereby amended by adding thereto the following sections: 8
571-42-61.2-3.4. iGaming Regulation. 9
572-In addition to the powers and duties of the Division director under §§ 42-61-4, 42-61.2-3, 10
573-42-61.2-3.1, 42-61.2-3.2, 42-61.2-3.3, and 42-61.2-4 and pursuant to §§ 42-61.2-2.1 and 42-61.2-11
574-2.3, the Division director shall promulgate rules and regulations relating to state-operated iGaming 12
575-and set policy for such gaming. Such rules and regulations shall include, but not be limited to: 13
576-(1) Standards, rules, and regulations to govern the conduct of iGaming, including, without 14
577-limitation: 15
578-(i) Procedures for investigation of patron complaints related to iGaming; 16
579-(ii) Terms and conditions for iGaming; 17
580-(iii) Internal controls for all aspects of iGaming, including procedures for system integrity, 18
581-system security, operations, accounting, and reporting of problem gamblers; 19
582-(iv) Operational controls for server-based gaming systems, software, and hardware utilized 20
583-for iGaming, including, but not limited to, appearance, functionality, contents, collection, storage, 21
584-and retention of data and security; 22
585-(v) Operational controls for online gaming accounts, including, but not limited to, 23
586-procedures for the establishment and closure of an online gaming account, funding of withdrawal 24
587-of funds from an online gaming account, and generation of an account statement for a patron's 25
588-online gaming account; and 26
589-(vi) Age restrictions for online iGaming patrons, which shall prohibited for players who 27
590-not reached twenty-one (21) years of age. 28
591-(2) Establishing the method for calculating online slot gaming revenue and online table 29
592-gaming revenue and standards for the daily counting and recording of cash and cash equivalents 30
593-received in the conduct of online slot games and online table games, and ensuring that internal 31
594-controls are followed and financial books and records are maintained and audits are conducted; 32
595-(3) Requiring the iGaming platform vendor to provide written information prominently 33
596-displayed on any electronic platform available to the patron through a server-based gaming system, 34
562+LC002885/SUB A - Page 16 of 20
563+(v) Require the Rhode Island Affiliates of Bally’s to an enter into an assignment and 1
564+assumption agreement between the Rhode Island Affiliates of Bally’s and the iGaming Joint 2
565+Venture (the "iGaming Assignment and Assumption Agreement"), the terms of which shall be 3
566+subject to the review and approval of the Division; 4
567+(vi) Contain such other terms and conditions as the Division and the Rhode Island Affiliates 5
568+of Bally’s may agree. 6
569+(2) To consent to: 7
570+(i) The irrevocable assignment by the Rhode Island Affiliates of Bally’s to the iGaming 8
571+Joint Venture of: 9
572+(A) The right to be the exclusive iGaming game vendor providing online slot games and 10
573+online table games to the Division, such online slot games and online table games being games 11
574+owned or licensed by an owner or an Affiliates of an owner of the iGaming game vendor or games 12
575+owned or licensed by a third party, that (in either case) are licensed to the iGaming game vendor 13
576+for sublicense to the Division as authorized by the Division. 14
577+(ii) The assumption by the iGaming Joint Venture of the obligations of the Rhode Island 15
578+Affiliates of Bally’s under the iGaming Game Agreement pursuant to the iGaming Assignment and 16
579+Assumption Agreement, the terms of which shall be subject to the review and approval of the 17
580+Division. 18
581+(3) To enter into a contract with the Rhode Island Affiliates of Bally’s to be the exclusive 19
582+iGaming platform vendor (“iGaming Platform Agreement”) under the terms and conditions set 20
583+forth in this chapter, which shall, among other matters: 21
584+(i) Provide for a term that is coterminous with the UTGR Master Contract or Twin River 22
585+Tiverton Master Contract, whichever agreement ends first; 23
586+(ii) Obligate Bally’s to regularly update and replace the server-based gaming system for 24
587+iGaming on schedules agreed to by the Division; 25
588+(iii) Provide the Division with the right to assess liquidated damages against Bally’s or its 26
589+Rhode Island Affiliates if iGaming wagers are not being accepted by the iGaming server-based 27
590+gaming system in accordance with this chapter as determined by the Division; 28
591+(iv) Obligate the Rhode Island Affiliates of Bally’s to fund the Division’s responsible 29
592+gambling programs to include prevention and education services in addition to those funds provided 30
593+under Section 42-61.2-14; 31
594+(v) Require the Rhode Island Affiliates of Bally’s to host server-based gaming systems in 32
595+connection with online sports wagering as determined by the Division; 33
596+(vi) Require the Rhode Island Affiliates of Bally’s to pay for a percentage of the costs, not 34
597597
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599-LC002885/SUB B/2 - Page 17 of 20
600-regarding wagering rules, payoffs on winning wagers, deposits, withdrawals, and other information 1
601-as the Division may require; and 2
602-(4) Any other matters necessary for conducting iGaming. 3
603-42-61.2-5.1. Allocation of online slot gaming revenue. 4
604-(a) Notwithstanding the provisions of § 42-61-15, the division of lottery is authorized to 5
605-enter into an agreement to allocate online slot gaming revenue among the state, the state's 6
606-authorized iGaming platform vendor, and the state's authorized iGaming game vendor. 7
607-(b) The allocation of online slot gaming revenue shall be as follows: 8
608-(1) To the state, sixty-one percent (61%) of online slot gaming revenue; 9
609-(2) To the state's authorized iGaming platform vendor twenty-two and fifty-five percent 10
610-(22.55%)of online slot gaming revenue; and 11
611-(3) To the state's authorized iGaming game vendor fifteen percent (15%) of online slot 12
612-gaming revenue; 13
613-(4) To the Town of Lincoln and the Town of Tiverton collectively, one and forty-five 14
614-hundredth percent (1.45%) of online slot gaming revenue, divided whereby the Town of Lincoln 15
615-receives seventy-seven (77%) of such allocation and the Town of Tiverton receives twenty-three 16
616-percent (23%) of such allocation; provided that the amounts received under this subsection shall be 17
617-credited towards the Lincoln Minimum and Tiverton Minimum, respectively, pursuant to § 42-18
618-61.2-7. 19
619-(c) Online slot gaming revenue allocated to the state shall be deposited into the state lottery 20
620-fund for administrative purposes and then the balance remaining into the general fund. 21
621-42-61.2-5.2. Allocation of online table gaming revenue. 22
622-(a) Notwithstanding the provisions of § 42-61-15, the division of lottery is authorized to 23
623-enter into an agreement to allocate online table gaming revenue among the state, the state's 24
624-authorized iGaming platform vendor, and the state's authorized iGaming game vendor. 25
625-(b) The allocation of online table gaming revenue shall be: 26
626-(1) To the state, fifteen and one-half percent (15.5%) of online table gaming revenue; 27
627-(2) To the state's authorized iGaming platform vendor, thirty-five percent (35%) of online 28
628-table gaming revenue; 29
629-(3) To the state's authorized iGaming game vendor, forty-eight and one-half percent 30
630-(48.5%) of online table gaming revenue; and 31
631-(4) To the Town of Lincoln and the Town of Tiverton collectively, one percent (1%) of 32
632-online table game revenue, divided whereby the Town of Lincoln receives eighty percent (80%) of 33
633-such allocation and the Town of Tiverton receives twenty percent (20%) of such allocation; 34
599+LC002885/SUB A - Page 17 of 20
600+to exceed thirty-three percent (33%) of such costs, including, but not limited to, professional and 1
601+project management fees, incurred by the Division in connection with implementation of the 2
602+Division’s operation of iGaming, which shall be set forth in the iGaming Agreement; 3
603+(vii) Provide financial protection to the state related to the potential impact on traditional 4
604+lottery products as a result of iGaming whereby Bally’s or the Rhode Island Affiliates of Bally’s 5
605+shall pay for an independent economic analysis of the negative impact, if any, experienced by the 6
606+traditional lottery products in the first year of iGaming operations and reserve one million three 7
607+hundred thousand dollars ($1,300,000) to address any negative impact. If the Division is able to 8
608+prove a negative impact on the revenue produced by traditional lottery products, without a 9
609+corresponding gain in revenue from iGaming, to an amount exceeding five hundred thousand 10
610+dollars ($500,000), after January 1, 2025, the Division shall receive the reserve funds from Bally’s 11
611+or the Rhode Island Affiliates of Bally’s. 12
612+(viii) Contain such other terms and conditions as the Division and Bally’s may agree. 13
613+(b) Nothing in this chapter shall be deemed to affect the authority of the Division to regulate 14
614+Bally’s, Affiliates of Bally’s, or the iGaming Joint Venture in connection with state-operated casino 15
615+gaming (including iGaming). 16
616+42-61.2-5.1. Allocation of online slot gaming revenue. 17
617+(a) Notwithstanding the provisions of § 42-61-15, the division of lottery is authorized to 18
618+enter into an agreement to allocate online slot gaming revenue among the state, the state's 19
619+authorized iGaming platform vendor, and the state's authorized iGaming game vendor. 20
620+(b) The allocation of online slot gaming revenue shall be as follows: 21
621+(1) To the state, sixty-one percent (61%) of online slot gaming revenue; 22
622+(2) To the state's authorized iGaming platform vendor, twenty-two and fifty-five 23
623+hundredths of a percent (22.55%) of online slot gaming revenue; 24
624+(3) To the state's authorized iGaming game vendor fifteen percent (15%) of online slot 25
625+gaming revenue.; and 26
626+(4) To the towns of Lincoln and Tiverton, one and forty-five hundredths of a percent 27
627+(1.45%) of online slot gaming revenue 28
628+(c) Online slot gaming revenue allocated to the state shall be deposited into the state lottery 29
629+fund for administrative purposes and then the balance remaining into the general fund. 30
630+42-61.2-5.2. Allocation of online table gaming revenue. 31
631+(a) Notwithstanding the provisions of § 42-61-15, the division of lottery is authorized to 32
632+enter into an agreement to allocate online table gaming revenue among the state, the state's 33
633+authorized iGaming platform vendor, and the state's authorized iGaming game vendor. 34
634634
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637-provided that the amounts received under this subsection shall be credited towards the Lincoln 1
638-Minimum and Tiverton Minimum, respectively, pursuant to § 42-61.2-7. 2
639-(c) Online table gaming revenue allocated to the state shall be deposited into the state 3
640-lottery fund for administrative purposes and then the balance remaining into the general fund. 4
641-42-61.2-17. General requirements for iGaming. 5
642-(a) Wagers in connection with iGaming shall only be initiated, received or otherwise made 6
643-within the State of Rhode Island. The iGaming platform vendor shall only accept wagers in 7
644-connection with iGaming from players who have been affirmatively located as being physically 8
645-present in the State of Rhode Island at the time of their wager. 9
646-(b) The server-based gaming system shall employ a mechanism to detect the physical 10
647-location of a player at the time the player is wagering, and as frequently as specified in any 11
648-regulations promulgated by the state, through the Division. If the system detects that the physical 12
649-location of the patron at the time the player is wagering is in an area outside the State of Rhode 13
650-Island, or if it cannot detect the physical location of the patron, the system shall not accept that 14
651-patron's wagers until such time as the patron is determined to be physically located in the State of 15
652-Rhode Island. 16
653-(c) The server-based gaming system used to process wagers in connection with iGaming, 17
654-and all other hardware, software, and technology or equipment located on a hosting facility's 18
655-premises and used in connection with iGaming, shall be located in a restricted area on the hosting 19
656-facility's premises. This restriction shall not apply to online table games, which may be conducted 20
657-on the hosting facility's premises in a place and manner approved by the Division. 21
658-(d) Other than the server-based gaming system used for iGaming, the hardware, software 22
659-and other technology and equipment used by the iGaming game vendor and its suppliers do not 23
660-need to be located in the State of Rhode Island. 24
661-(e) iGaming shall only be engaged in by patrons who have established an online gaming 25
662-account pursuant to the rules and regulations promulgated by the Division. 26
663-42-61.2-18. Acceptance of out-of-state iGaming. 27
664-(a) Notwithstanding any other provision of law to the contrary, wagers may be accepted 28
665-under this chapter from persons who are not physically present in Rhode Island if the Division has 29
666-determined that: 30
667-(1) Accepting the wagers is not inconsistent with federal or Rhode Island constitutional 31
668-and statutory law and not inconsistent with the law of the jurisdiction in which the person placing 32
669-the wagers is located; or 33
670-(2) The wagering is conducted pursuant to a reciprocal agreement to which Rhode Island 34
636+LC002885/SUB A - Page 18 of 20
637+(b) The allocation of online table gaming revenue shall be: 1
638+(1) To the state, fifteen and one-half percent (15.5%) of online table gaming revenue; 2
639+(2) To the state's authorized iGaming platform vendor, thirty-five percent (35%) of online 3
640+table gaming revenue; and 4
641+(3) To the state's authorized iGaming game vendor, forty-eight and one-half percent 5
642+(48.5%) of online table gaming revenue. 6
643+(4) To the towns of Lincoln and Tiverton, one percent (1%) of the online table gaming 7
644+revenue. 8
645+(c) Online table gaming revenue allocated to the state shall be deposited into the state 9
646+lottery fund for administrative purposes and then the balance remaining into the general fund. 10
647+42-61.2-17. General requirements for iGaming. 11
648+(a) Wagers in connection with iGaming shall only be initiated, received or otherwise made 12
649+within the State of Rhode Island. The iGaming platform vendor shall only accept wagers in 13
650+connection with iGaming from players who have been affirmatively located as being physically 14
651+present in the State of Rhode Island at the time of their wager. 15
652+(b) The server-based gaming system shall employ a mechanism to detect the physical 16
653+location of a player at the time the player is wagering, and as frequently as specified in any 17
654+regulations promulgated by the state, through the Division. If the system detects that the physical 18
655+location of the patron at the time the player is wagering is in an area outside the State of Rhode 19
656+Island, or if it cannot detect the physical location of the patron, the system shall not accept that 20
657+patron's wagers until such time as the patron is determined to be physically located in the State of 21
658+Rhode Island. 22
659+(c) The server-based gaming system used to process wagers in connection with iGaming, 23
660+and all other hardware, software, and technology or equipment located on a hosting facility's 24
661+premises and used in connection with iGaming, shall be located in a restricted area on the hosting 25
662+facility's premises. 26
663+(d) Other than the server-based gaming system used for iGaming, the hardware, software 27
664+and other technology and equipment used by the iGaming game vendor and its suppliers do not 28
665+need to be located in the State of Rhode Island. 29
666+(e) iGaming shall only be engaged in by patrons who have established an online gaming 30
667+account pursuant to the rules and regulations promulgated by the Division. 31
668+42-61.2-18. Acceptance of out-of-state iGaming. 32
669+(a) Notwithstanding any other provision of law to the contrary, wagers may be accepted 33
670+under this chapter from persons who are not physically present in Rhode Island if the Division has 34
671671
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674-is a party that is not inconsistent with federal or state law, including Rhode Island constitutional 1
675-and statutory law. 2
676-(b) The Division may enter into an interactive gaming reciprocal agreement with a 3
677-regulatory agency of one or more other states or jurisdictions in which interactive gaming is 4
678-authorized to allow an interactive gaming operator to accept wagers from persons not physically 5
679-present in Rhode Island, and to allow persons physically present in Rhode Island to place wagers 6
680-with parties to the interactive gaming reciprocal agreement, if the Division has determined that the 7
681-reciprocal agreement is not inconsistent with federal and state law, including Rhode Island 8
682-constitutional and statutory law. 9
683-SECTION 6. This act shall take effect on March 1, 2024. 10
673+LC002885/SUB A - Page 19 of 20
674+determined that: 1
675+(1) Accepting the wagers is not inconsistent with federal or Rhode Island constitutional 2
676+and statutory law and not inconsistent with the law of the jurisdiction in which the person placing 3
677+the wagers is located; or 4
678+(2) The wagering is conducted pursuant to a reciprocal agreement to which Rhode Island 5
679+is a party that is not inconsistent with federal or state law, including Rhode Island constitutional 6
680+and statutory law. 7
681+(b) The Division may enter into an interactive gaming reciprocal agreement with a 8
682+regulatory agency of one or more other states or jurisdictions in which interactive gaming is 9
683+authorized to allow an interactive gaming operator to accept wagers from persons not physically 10
684+present in Rhode Island, and to allow persons physically present in Rhode Island to place wagers 11
685+with parties to the interactive gaming reciprocal agreement, if the Division has determined that the 12
686+reciprocal agreement is not inconsistent with federal and state law, including Rhode Island 13
687+constitutional and statutory law. 14
688+SECTION 4. This act shall take effect on January 1, 2024. 15
684689 ========
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687692
688693
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694+LC002885/SUB A - Page 20 of 20
690695 EXPLANATION
691696 BY THE LEGISLATIVE COUNCIL
692697 OF
693698 A N A C T
694699 RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO LOTTERY GAMES,
695700 TABLE GAMES AND SPOR TS WAGERING
696701 ***
697702 This act would legalize iGaming by patrons located in the State of Rhode Island. 1
698-This act would take effect on March 1, 2024. 2
703+This act would take effect on January 1, 2024. 2
699704 ========
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705+LC002885/SUB A
701706 ========
702707