Bally’s is trying to increase the gambling credit limit at its two properties in Rhode Island from $50,000 to $100,000 in order to stay competitive and attract high-stakes players. Not surprisingly, this move has sparked concerns despite the fact that Bally’s has secured the support of Senate President Dominick Ruggerio.

Bally’s Representative Tackles Concerns Over Rhode Island Casino Credit Proposal

Bally’s representative, Elizabeth Suever, addressed concerns during a Senate Committee on Special Legislation meeting. Suever noted that the proposal’s goal is to cater only to gamblers capable of repayment, reported The Providence Journal. 

Notably, casinos in Connecticut and Massachusetts are operating without such credit limits so the proposal is trying to level casino offerings in Rhode Island with the neighboring competition. The state of Rhode Island is quite dependent on gambling tax revenue, which amounts to $428.8 million annually.

However, opponents have expressed their confusion about the proposal being introduced at the end of the legislative session and the urgency surrounding it.  A spokesperson for Ruggerio confirmed that the legislation was crafted upon Bally’s request to counter competition from Massachusetts casinos.

Nonetheless, there is one stipulation in the proposal that has raised lawmakers’ eyebrows. The bill is going to affect the state’s Department of Business Regulation‘s authority to change Bally’s operating agreement without legislative approval. 

Rhode Island Proposal Aims to Attract High-Rollers

The proposal proponents argue that the bill will affect only a small group of high-rollers. It is going to reduce the need for large cash transactions for such players and, thus, make Bally’s casinos more attractive to them. 

Answering concerns about financial oversight and potentially higher gambling debt, the bill’s supporters note that players are going to be subject to rigorous scrutiny such as credit checks, identification verification, and tracking of their gaming history across local casinos. 

However, there is no detailed information available regarding the current number of players with $50,000 credit limits.

Additionally, the proposed legislation is going to change various aspects of Rhode Island’s lottery and casino operations. For example, Bally’s debt ratio shall have to be revised and the method for calculating promotional points shall also be changed.

This, in turn, will impact the state’s revenue share. The main challenge ahead of legislators will be to strike a balance between responsible gaming and keeping the competitive edge of Rhode Island casinos against neighboring states. The fate of the proposal will have implications for economic revenue and consumer behavior in the gambling sector.

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Bally’s Corporation continues its expansion across the US, and the newest casino is in Rhode Island.

Bally’s monopoly in the market

The state legalized iGaming eight months ago, and now it’s time for operators to expand their businesses to this new market. Bally’s is introducing its impressive portfolio of slot and table games to Rhode Island players, so gamers can enjoy the impressive portfolio of 170 captivating slot releases. To play, they must be at least 21 and create an account on Bally’s platform.

Before the official launch, the company conducted a technical trial that lasted for four days to make sure everything was working properly. On top of that, Stakelogic incorporated its live dealer and table games software studio technology in its portfolio.

Back in 2021, Rhode Island legislators approved Bally’s and its IGT supplier a 20-year contract for land-based casinos Bally’s Twin Rivers Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel, so the company has a monopoly in this market. Now, this monopoly will also be transferred to the iGaming industry. Gamesys, Bally’s online arm, might be the only operator who is able to offer its services in Rhode Island.

According to the state’s law, Bally’s and IGT will be obligated to pay 50% of online slot revenue to the state. Tax revenue imposed on table games is 18%.

The industry giant is prepared for launch, so the company has built a Live Dealer Table Studio placed across 4,000 square feet at Twin Rivers.

The state established a body to regulate all iGaming operations, the Rhode Island Division of the Lottery. Now, the body oversees two of Bally’s casinos in the state.

Sports betting revenue decrease

The law ensured that geolocation technology could be used to confirm that players were located inside the state’s borders. If the state has a reciprocal agreement with another state regulator, it might lead to allowing the players to play outside Rhode Island. Sports betting used to be very popular in the state, but according to the revenue reports, its popularity started to decrease. In January, the sports betting handle was $44.8 million. In December 2023, it was $47.9 million, and not only is this figure lower than December’s, but it’s also the lowest handle since September 2023. So far, the handle in the 2024 financial year decreased to $267.2 million, since in 2023 it was $332.8 million. Bally’s interactive iGaming business might help in increasing the revenue in the state since iGaming increased the revenue in the whole country. Apart from Rhode Island, six states legalized iGaming operations: New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, and Connecticut.

Source: iGB Editorial Team. “Rhode Island becomes seventh US state to launch iGaming”, igamingbusiness.com, March 5, 2024.

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This has been made possible through Bally’s, which has been offering interactive casino games of chance since Tuesday, and is the first time the country has seen a new expansion and a subsequent launch of iGaming since Connecticut became the sixth state to do so in October 2021.

Rhode Island Lifts the Curtain on Online Casino Gaming

The key event here is not so much the arrival of interactive gambling, as online sports betting has been available in Rhode Island since late 2019. Last year, the state gave its go-ahead to Bally’s to operate an exclusive live casino with Stakelogic, a supplier with a global reach and a unique blend of live dealer games.

Rather, it’s a matter of introducing online casino games. Bally’s features 170 slot games and it also offers live dealer tables for blackjack and roulette, both of which are popular segments.

However, the online casino does come with some conditions. For one, to play online, players would have to be 21 years of age, as opposed to 18 years for the commercial casino. There are also a host of responsible gambling measures designed to ensure that online players are protected and have access to all they need to engage responsibly with gambling.

That includes session limits, spending and betting restrictions, cool-off periods, and of course self-exclusion. Rhode Island, a small state by any meaningful measure in the United States, has decided to pursue growth in yet another important gambling vertical.

Bally’s is hoping to continue adding to its online casino offer, although there may be a fast-reached ceiling for the actual growth with not that many players to go around. The Ocean State and the latest introduction of online casino games, though, begs the question of how soon before we see others follow suit. The gambling bill that made online casino gambling in Rhode Island is far from ideal, though.

Who May Be Next in the Race for iCasinos?

It only allows Bally’s to offer such products, and this is understandable as Rhode Island operates an exclusive based on an exclusivity model with the brand. Other states though are bigger, and there are already several potential targets for further expansion. Among the names that have openly discussed the idea are both Indian and Illinois.

Florida, which managed to push online sports betting through a tribal compact, has been openly tinkering with the idea of using the same arrangement and introducing online casinos, although all of these are rather far-fetched.

There is a compelling case to pursue growth in Indiana, too, as according to a recent study, the state stands to rake in millions worth of tax windfall, not to mention the added value to the economy. Anything new coming out of Illinois this year, though, is more likely to do with a proposed tax increase, however.

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Bally’s Corporation, a major player in the casino industry, has joined forces with Stakelogic, a leading supplier of live casino games, in an ambitious move to expand its online gaming operations. 

Stakelogic Gains Ground in the US Market Through the Partnership

By collaborating with Stakelogic, Bally’s plans to introduce a state-of-the-art live casino experience to the North American market. Offering a wide range of popular online live casino games, including favorites like Blackjack, Roulette, and Baccarat, Bally’s aims to captivate Rhode Island players starting in April 2024.

Expressing his excitement about the venture, Robeson Reeves, the CEO of Bally’s Corporation, expressed his confidence in the partnership, stating: “Our collaboration with Stakelogic in bringing our live casino operations online in Rhode Island is truly thrilling. With Stakelogic’s expertise and cutting-edge technology, we are poised to deliver an unparalleled live dealer experience to our customers.”

Stakelogic, widely recognized as an emerging force in the iGaming industry, has been making waves in over 20 markets. Boasting an impressive portfolio of 250+ slot games, along with innovative live dealer technology, the company has firmly established itself as a leader in the field.

Stephan van den Oetelaar, the CEO of Stakelogic, also expressed his enthusiasm for the partnership, remarking: “We are extremely excited to partner with Bally’s, as it will pave the way for Stakelogic to introduce its cutting-edge technology in the US market.”

Van den Oetelaar further added that the collaboration would not only reinforce Stakelogic’s position as a leading technology company in the iGaming industry but would also present it with an incredible opportunity to further expand its growth since the successful launch of its live casino offerings.

Rhode Island Embraces iGaming with Bally’s Monopoly

The Bally’s and Stakelogic partnership closely follows Rhode Island passing Senate Bill 948, legalizing iGaming in the state and extending Bally’s monopoly in the market. The new legislation allows Rhode Island residents to enjoy casino games on their mobile devices, with the Rhode Island Lottery Commission overseeing the industry and implementing player protection measures. Despite criticism for the exclusive deal, the move marks a significant milestone for the state and is expected to bring economic benefits and enhanced consumer safeguards.

Meanwhile, at the end of June, Bally’s Corporation agreed to a $1 billion sale-and-leaseback deal with GLP Capital for its Rhode Island casinos, Tiverton Casino and Hotel and Twin River Lincoln Casino, with Bally’s immediately leasing them back and resuming ownership and management. The deal may also include adding the casinos to the current master lease with GLPI, providing Bally’s with long-term liquidity and strengthening its expansion plans.

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Rhode Island will soon have state-sanctioned online casino games just a few short months after the idea was informally introduced.

For some background, RI is the smallest state in the US with a land mass of less than 50 miles by 50 miles in any direction. It was the 13th colony and the first to declare independence in 1776.

It’s also home to the operational offices of IGT and the headquarters of Bally’s Corp. – the two companies selected to operate online games under the state lottery commission’s oversight.

Smooth Operators

The law faced little opposition after the idea was introduced on behalf of Bally’s and its operating partner, IGT at a Wednesday afternoon luncheon held by the Greater Providence Chamber of Commerce in February.

From there, the House introduced a bill that some lottery officials thought might be unconstitutional due to the way table gaming was legalized in the state. Then the Senate introduced and approved a “substitute” bill earlier this month with a “fix” that boiled down to removing digital table games and allowing only for live dealer online casino games.

Gov.Dan McKee signed Senate Bill 948 into law on Thursday (22 June), giving Bally’a land-based casino monopoly in iGaming unheard of elsewhere in America. IGT is right there with them holding not only the tech side of the deal, the supply side of the video lottery terminal business for the land casinos, and the sports betting contract with Bally’s and the state but a multi-decade lottery concession.

The online casino or casinos, which Bally’s would have servers located within one or both of the state’s only two land-based casinos to host – Bally’s Twin Rivers Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel – would be managed by the Rhode Island Lottery (RILOT).

“This legislation provides an added convenience to Rhode Islanders who would like to play the existing table games offered at Twin River via their mobile devices,” said the bill’s sponsor and president of the senate Dominick J Ruggerio.

“This is a focused version of igaming that is ready for implementation. This igaming legislation is constitutional, is geared to mature users, contains education provisions for problem gamblers, and preserves the revenue allocation percentages as they are currently in place.”

Not Everyone Happy With the “Monopoly”

Competitors such as a gaming alliance that includes DraftKings did speak up against the continued “monopoly” earlier but were simply not heard when it came down to getting the job done.

New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, and Connecticut preceded RI in authorizing online casinos and so did Nevada. However, while the Nevada legislation authorized online slots and other games, online poker regulations were written to go along with the law so no online casinos were ever launched in Nevada.

The original bill sought a start to gaming as early as January 1, 2024, and while that is still possible, the new law set a starting date of March 1, 2024.

Source:

Rhode Island becomes seventh state to legalise igaming, iGaming Business, June 22, 2023

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Senate Bill 948 officially allows iGaming in the state, outlining how the industry will develop in the coming years. Despite calls to diversify Rhode Island’s gambling market by allowing other operators, the exclusive deal with Bally’s and supplier IGT means the region will remain a walled garden until at least 2043. The new legislation still marks a significant milestone for residents, giving them new ways to engage with their hobby.

Players Can Expect a Smooth Launch

Governor Dan McKee signed Senate Bill 948 mere hours before the deadline, opting not to veto the landmark legislation. The new law outlines how the state’s iGaming industry will operate, allowing the state to capitalize on the potential economic benefits. Rhode Islanders receive a new way to engage with their favorite games and will benefit from updated safe gambling measures.

The legislation imposes a steep 50% tax on iGaming revenue, contrasting the 18% for land-based establishments. President of the Senate Dominick J. Ruggerio, a leading proponent for the new law, noted that Rhode Islanders would enjoy new freedoms, translating the Twin River casino experience to their mobile devices.

“This iGaming legislation is constitutional, geared to mature users, contains education provisions for problem gamblers, and preserves the (current) revenue allocation percentages.”

Dominick J. Ruggerio, President of the Senate

The Rhode Island Lottery Commission, which currently oversees the state’s land-based casinos, will also regulate the state’s iGaming sector. Bill 948 gives the authority provisions to implement player safeguards like minimum age restrictions and geolocation requirements, guaranteeing sufficient player protection measures. The Commission can also partner with other state regulators, allowing Rhode Islanders to enjoy their pastime outside state borders.

The New Law Maintains the Current Status Quo

While legalized iGaming usually results in significant industry turmoil as operators strive to secure a market share in a new jurisdiction, Rhode Island’s circumstances make the launch irrelevant to the broader US market. In 2021, the state extended its long-term contract with operator Bally’s and supplier IGT, providing them with an undisputed monopoly.

The exclusivity agreement extends into the iGaming sector, meaning Rhode Island bettors can only play at one of Bally’s many brands in the state. Such an approach leads to substantially simpler regulation but has drawn significant criticism from other operators calling for a free market. However, the current binding agreement with Bally’s makes any upsets highly unlikely.

The signing of Senate Bill 948 marks a significant milestone for Rhode Island as the state becomes the seventh one to legalize iGaming. Despite its limited scope, online gambling should bring numerous benefits like increased state revenue, job creation, and enhanced consumer protection. The state has taken care to establish the necessary safeguards and protect Rhode Islanders from potential gambling harm.

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Senate Bill 948 Sub A, which is now headed to the House of Representatives for consideration, would allow individuals over the age of 21 to play table games remotely within the state using their computers or mobile apps.

Rhode Island Senate Bill Advances with Amendments to Ensure Live Dealer Requirement

Senate President Dominick J. Ruggiero, D-North Providence, expressed his enthusiasm for the legislation, highlighting the added convenience it would provide to Rhode Islanders. He emphasized that the bill’s objective is to strengthen the state’s facilities in the competitive regional gaming market while protecting a vital revenue stream that supports various state programs and investments.

The bill underwent a thorough committee hearing process, during which the initial proposal was scrutinized and amended. The revised legislation now requires a live dealer to be present, similar to the requirement in New Jersey law that restricts bets to be placed in Atlantic City.

Ruggiero reassured the public that the legislation is constitutional, targeting mature users, and includes provisions for educating problem gamblers while preserving the current revenue allocation percentages.

In the House, the bill will be paired with similar legislation introduced by Rep. Gregory J. Constantino, D-Lincoln.

Rhode Island Senate Greenlights iGaming Legislation, Bringing Online Casino Access Closer

The swift approval of the Legal iGaming legislation by the Rhode Island Senate has generated momentum for the bill, which was also supported by the Sports Betting Alliance. 

Under the proposed legislation, casinos will be permitted to offer online games through the IGT platform, the same platform used in the state’s brick-and-mortar casinos. The Rhode Island Lottery will assume the role of regulator. In April, IGT extended its sports betting contract with the Rhode Island Lottery for another three years.

The bill also includes changes such as raising the minimum age for online table games to 21, addressing gambling addiction treatment concerns, and adjusting tax rates. Rhode Island’s share of online slot revenue will increase to 61%, while the share of table game revenue will be reduced to 15.5%.

While online casino legislation in Rhode Island progresses, other states like New York, New Hampshire, Illinois, and Indiana have fallen short in passing similar bills this year.

If the Senate measure clears the House, Rhode Island could become a pioneer in providing remote access to table games, offering a new level of convenience and entertainment to its residents. Rhode Island is also seeking to introduce betting on college sports through a new bill that aims to lift restrictions on betting on in-state college teams, potentially allowing wagers on pre-season invitationals, conference tournaments, and even March Madness.

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Lawmakers in the Rhode Island Senate passed a bill allowing the state to open one or more online casinos. The target opening date is January 1, 2024. Gaming would be regulated by the state lottery agency (RILOT) and game servers would be located in one or both of the state’s VLT (video lottery terminal) and table game casinos in Lincoln and Tiverton.

Final changes to the bill (S-0948 Sub. A), included the removal of digital casino games such as blackjack, roulette, craps, and baccarat and replacing them with live-dealer games only as well as a change in the state’s share of revenues from a proposed near the industry-high level of 50% of revenues for slots to 61% and a decrease on table game revenues take from 18% to 15.5%.

Age Raised to 21 for Table Games

Responsible gambling language was added and the minimum age to gamble at the online live dealer tables was raised from 18 to 21.

A few things make this story perhaps more interesting than it might be otherwise, although it is always news when a US state liberalizes online gambling.

Rhode Island is home to Bally’s Corp. and global casino and lottery giant International Game Technology (IGT), which has more than $4.2 Billion in annual revenue. It is also the smallest state in the US but the most densely populated. The two companies have entered into a partnership for the online casino(s) continuing an agreement to provide sportsbetting services and tech to the state.

In January this year, Bally’s Corp. announced it would cut 15% of its North American Interactive workforce and in February announced it had drafted and introduced legislation to authorize iGaming in RI.

While online casino measures have failed recently in Illinois, Indiana, New Hampshire, and New York, the one in Rhode Island appears on a track to success despite some questions of constitutionality from RILOT as well as potential competitors who were not happy with sports betting services being effectively restricted to s single provider choice.

The measure was approved in short order on a 30-4 vote Thursday, June 8, 2023. A Senate Special Legislation and Veterans Affairs Committee made changes to the original bill sent up from the House on Tuesday – those changes addressed perceived constitutional issues with the original measure.

One question revolved around a form of live dealer casino gaming that is conducted from a studio rather than directly from a live-action casino floor. Lottery representatives feared that the constitutional definition of “table games” which was used in a voter-approved referendum allowing tables at the state’s land-based casinos, could be violated. While top lawmakers disagreed with the assertion they felt that accommodating a simple language change would be worth the effort.

New language in the bill states: “(30) “Online table game” means a casino-style table game authorized by the Division within the scope of the term iGaming, where such, games are conducted by one or more live persons and made available to players through use of the Internet…”

The bill is now headed back to the House of Representatives for any further debate or final adjustments – barring any change in language it is expected to be passed and sent to the Governor for his signature. The RI House passed a budget bill (2023-H 5200Aaa) on Friday, June 9 with revenue numbers from the iGaming bill baked in. That bill is now set to go to the Senate, whose Finance Committee is expected to consider it Tuesday at 3 p.m.

More Cautious Revenue Estimates

If erring on revenue numbers, the newest bill allows lawmakers to err on the side of caution and uses a more conservative estimate of $162.6 million directed into state coffers during the first five years of online casino operations rather than the original $210 million estimate provided by Bally’s in the original proposal. That number game from an industry study and report done by Spectrum Gaming for IGT/Bally’s. Many lawmakers quietly doubted the number while relying on the more conservative estimate.

“This legislation provides an added convenience to Rhode Islanders who would like to play the existing table games offered at Twin River via their mobile devices,” said Senate Dominick J. Ruggiero, who introduced the bill to the chambers.

“It helps ensure the continued strength of the state facilities in the competitive regional gaming market, and in so doing protects an important revenue stream that provides funding for vital state programs and investments.”

This is an important consideration considering the political fallout surrounding the original sportsbetting legislation that relied on numbers provided by the American trade association and industry watchdog, the American Gaming Association (AGA). Former Governor Gina Raimondo’s administration caught political flak when the industry numbers didn’t shake out right away. However, the state lost several months of revenue during peak sportsbetting season due to lagging approvals and ongoing tussles over the pending legislation.

In that launch, the state was counting on $23 million in revenue during the first year of operations but missed September, October, and November – important football betting months, especially in a small state with a fiercely loyal fanbase for its “local team”, the New England Patriots. The state’s biggest month to date for sportsbetting revenue was $6,703,144 (circa $80m annualized) for Nov. ’21 and the state’s greatest handle of sports bets was $62,317,384 in Jan. ’23. There are two physical sports books in the state (Bally’s Lincoln and Bally’s Tiverton) and one mobile app operated by IGT/Will Hill and Bally’s casinos. Retail sportsbetting has been legal there since May 2018 and active since Sept. 4, 2019.

Source:

Senate passes iGaming bill, State of Rhode Island General Assembly News, June 9, 2023

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Now, the comments of Rhode Island Senate President Dominick Ruggerio have caused another stir in the debate with the man lambasting those who have been calling for restricting smoking on gaming floors.

Blasting Casino Workers for Accepting the Jobs in the First Place

Ruggerio outright criticized casino workers for demanding a stop to smoking, using rather strong language to describe their demands. His remarks came as part of the Rhode Island Report, a weekly podcast hosted by PBS and The Boston Globe.

The debate got quite heated as the topic of indoor smoking came up during the podcast. Essentially, there is a loophole in the state’s laws that exempts casinos from the Public Health and Workplace Safety Act and allows casinos to host smokers on gaming floors.

This has to end, insist those opposing the exemption. However, Ruggerio chose to coach his own words much more firmly saying that those people should just look for other jobs instead. “Now, all of a sudden, there’s a small group who feels that it’s not good for their health,” the lawmaker vituperated on air.

Of course, Ruggerio is misinformed on at least two of the things he said – for starters, the link between ill health and smoking, as well as second-hand smoking, has been very well-established. Ruggerio’s own personal objection to those who call for smoke-free areas does not really change scientific evidence founded in hard facts and not flippancy.

Then again, there is the matter of how many people are actually fed up with smokers. Casino workers are on the front lines, but other guests have been complaining, too. A recent survey ranking the worst hotel services in the United States, for example, cited cigar odor as one of the off-putting reasons why they have given certain properties low reviews.

Ruggerio is supposed to offer balanced opinions as well, and as a lawmaker, he should advocate for people’s well-being. Another argument that a lack of smokers undermines the financial feasibility of casino projects has also been busted by hard data that indicates that companies show no slowdown in their operating results.

No, Ventilation Systems Does Not Protect Against Dangerous Particles

Rhode Island’s Casino Employees Against Smoking Effects chapter, CEASE, has responded to Ruggerio’s comments saying that they were disrespectful, incendiary, and badly informed. “For the Senate President to blame casino workers for “agreeing” to this job is a slap in the face to the hundreds of workers who are the backbone of the casino industry,” an official message stated.

Those supporting Ruggerio’s scurrilous claims have often cited the advancements made in ventilation systems during the pandemic that effectively “negate” the impact of second-hand smoking. This too sounds great, only the claims are not really sustainable.

The American Society of Heating, Refrigerating, and Air-Conditioning Engineers actually reached out with an official position to Rhode Island’s lawmakers informing them that such claims were not true and that ventilation systems do not actually remove harmful and toxic particles and certainly not to a level where they would be innocuous to the thousands of people working in Rhode Island’s casinos and experiencing second-hand smoking.

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Bally’s Corp. and IGT, two major gambling businesses with headquarters in America’s smallest but most densely populated state, had a chance to pitch their plan for online casino gambling in Rhode Island, but not every stakeholder in government the local gambling economy appeared to be happy about the prospect as proposed.

IGT is a familiar name to most seasoned casino gamblers in the US, but not everyone is aware of the fact that Si Redd’s Las Vegas-based company was acquired by and merged with the world’s largest lottery operator, GTECH – a company that posted over US$ 4 billion in revenue for 2022 or that Bally’s as we know it is not the Bally’s they may have known a decade ago. That company sprung from Twin Rivers (Rhode Island’s exclusive video lottery terminal casino game supplier with venues in Lincoln and Tiverton) and acquired the Bally’s name from Caesar’s a short time ago in relative terms.

The pushback comes from what might seem to be the most unlikely of places – the Rhode Island State Lottery (RILOT). Under the proposed bill, RILOT would have complete control of nearly every aspect of the proposed online casino gambling market in the state from the making of game rules to terms and conditions, and every regulatory duty normally associated with online casino gambling. The servers themselves would be located in one or both of Bally’s land-based casinos in the state.

IGT provides Bally’s with technology and machines to run its lottery casinos and sportsbetting applications in the state.

The Will of the People

Casino gambling and gambling expansion in the state were allowed under voter referendums in accordance with the state constitution, which as of today states:

“No act expanding the types or locations of gambling which are permitted within the state or within any city or town … shall take effect until it has been approved by the majority of those electors voting in a statewide referendum and by the majority of those electors voting in said referendum in the municipality in which the proposed gambling would be allowed.”

Furcolo said (formatting – source article): “While the Rhode Island Lottery believes there is a legislative path for authorizing iGaming, and is supportive of iGaming, it is the … Lottery’s position that the bill — as drafted — is likely unconstitutional and must be revised to conform with the authorization under the 2012 and 2016 Voter Referendums related to casino gaming.

IGT is Rhode Island’s exclusive supplier of lottery solutions such as traditional lottery, instant win tickets, video lottery terminals (casino “slots”), and internet lottery games in the state.

The company’s lottery contract was recently extended until 2043 guaranteeing IGT the exclusive right to provide those games and services for an additional 20 years.

More recently, Bally’s was approved by RILOT to continue its exclusive provenance of sportsbetting in the state for three years, in concert with and using the technologies of IGT.

More than Constitutional Issues?

According to a report in the Providence Journal, one of the problems raised at a Senate hearing was one of monopoly as the legislation under consideration would not allow competitive bidding for an online casino license tender. The legislation, as proposed, was written and delivered to state lawmakers by Bally’s Corp, IGT, or one of the consortium’s affiliates.

Another issue, the one at front and center is the ability of 18-year-olds to act as “gambling surrogates” or proxy bettors for other high school-aged residents even younger.

Rhode Island teens of 18 years or older are currently banned from purchasing or using alcohol, cigarettes, or recreational marijuana – but they are allowed to place sports bets. According to the Providence Journal article: “<this> has made them kingpins of sorts in high school gambling operations.”

It’s not always easy to parse what’s “really” being said in Rhode Island media as the state has an antiquated but fully democratic government in the republican form, but a labyrinthine and impossible for outsiders to navigate political system as well as a history of less than savory characters holding sway over many elements of power in the state. If those nuances, as well as other things about America’s oldest state, are not understood by readers, the media may falsely assume that readers outside of the state may know what is behind certain references.

One salient example is a statement made by former Sen. John Tassoni Wednesday night when he was speaking in the capacity of a Rhode Island Council on Problem Gambling board member. He told a Senate committee: “They were called ’10 percenters’ on Federal Hill,” while referring to 18-year-olds giving younger children access to gambling online.

The former Senator’s office was closed on Sunday as this article was written so we were unable to contact him for clarification. We find no history of the “obvious” assumption that teens “ran numbers” for bookmakers or any other guess at what nefarious nature a “teen ten percenter” would represent.

A snippet of RI history for context from WorldAtlas:

On May 4th, 1776, Rhode Island was the first colony to renounce allegiance to Great Britain and declare its independence. However, Rhode Island was the last state to ratify the United States Constitution. It finally did so on May 29, 1790.

Readers are welcome to do their own research on Federal Hill and its history to form a personal assumption about the former Senator’s reference. A cursory search revealed no reference to gambling for our researchers.

Former Senator Not Alone in Concerns

Rhode Island Lottery director, Mark Furcolo warned that the Senate bill (S948) is “likely unconstitutional” as it is currently written. The Journal states that even if that issue is put to rest, iGaming “is likely” to cannibalize state revenues from existing Lottery offerings. However, Bally’s addressed that issue in a Spectrum Gaming analysis prior to announcing the new legislation at a Chamber of Commerce dinner a couple of months ago.

It would appear to the casual observer that some of the “noise” rising up against the casino bill may come from competitors, as is understandably the case in a capitalist system that is supposed to be fair and free of monopolization.

A spokesman for the Sports Betting Alliance (a coalition that includes BetMGM, DraftKings, and FanDuel) reportedly asked why Rhode Island might join Delaware as the only state in the Union “whose residents would be limited to a single choice when it comes to iGaming.”

While the aforementioned businesses are all primarily sportsbetting operators, they also have casino components in some states that allow online casino gambling along with sportsbetting.

The spokesperson, Jon Mandel continued: “The result will be no different than mobile sports betting,” referring to the recent RILOT/Bally’s contract renewal of three years.

“Residents will continue to use the illegal market; <they will> drive into Connecticut; or <they will> wait until Massachusetts legalizes iGaming to then cross the border, to the benefit of that state, not Rhode Island.”

Is $210 Million Per Year in New Revenue Enough?

Mandelas purportedly backed up his argument by referring to stats from the first month the neighboring state, Massachusetts opened online sports betting in that state, beginning on March 10, 2023.

Mandalas stated: “GeoComply identified 1,761 instances of a Rhode Island resident first attempting to access a Massachusetts sports betting app in Rhode Island and then traveling to Massachusetts and successfully logging into an app.”

The Sports Betting Alliance argues: “Multiple iGaming operators will generate significantly more tax revenue for the state than if the state grants one company a monopoly.”

The Bally’s measure as written is expected to generate about $210 Million a year for state coffers based on its Spectrum Gaming analysis and report which was tendered along with the proposed legislation in February this year.

Source: Online gambling could bring $210m in revenue. Why is Rhode Island Lottery pushing back? Providence Journal, May 12, 2023

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