2018 -- H 7825

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LC005058

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO SPORTS, RACING AND ATHLETICS

     Introduced By: Representatives Nunes, and Marszalkowski

     Date Introduced: February 28, 2018

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 41-1 of the General Laws entitled "Division of Racing and

Athletics" is hereby amended by adding thereto the following section:

     41-1-4. Online and fantasy sports - Authorization - Regulation.

     (a) The division of racing and athletics ("the division") is hereby authorized and directed

to implement online games of skill, including, but not limited to, fantasy sports, so-called,

including, but not limited to, fantasy football and baseball, and other games of skill, subject to the

provisions of, and preempted and superseded by, any applicable federal law.

     (b) The division is authorized to sell prepaid play cards for fantasy sports, subject to

proof of age verification, and may be sold by any agent licensed to sell lottery tickets pursuant to

the provisions of chapter 61 of title 42. The cards may be recharged and resold by any authorized

agent; provided, the prepaid cards shall not be deemed to be gambling but are deemed games of

skill.

     (c) Purchase of online products shall require a secure website to access any customer

account by entering a unique password for each online purchaser. Geo-location tools shall be

employed by any platform provider authorized under this section, to ensure that a player is a

resident of the state.

     (d)(1) The division shall develop a request for proposals and use the competitive sealed

bidding procedures established pursuant to chapter 2 of title 37 to solicit competitive bids from

private vendors to develop any online platform, and such platform shall have maximum flexibility

to allow for changes in technology and changes in consumer behavior. All providers shall

implement and employ a responsible gaming policy that shall be approved by the division.

     (2) Basic qualifications for consideration in selecting and maintaining both a provider and

an online platform shall include the following:

     (i) Experience in platform development;

     (ii) Experience in developing gaming platforms;

     (iii) Experience in website security, including an ability to address all key security areas

such as fraud detection, hacking, and prevention of distributed denial of service;

     (iv) Demonstration of good character, honesty, and integrity;

     (v) Ability to maintain and grow the site, based on actual experience and demand growth;

and

     (vi) A history of working cooperatively with clients to produce systems that provide the

maximum flexibility for and benefit to the client rather than the vendor.

     (3) All vendors shall provide a "free-play site", so-called, developed concurrently with

the gaming site. Any successful bidder shall be compensated based on a percentage of sales

established by the division. The successful bidder shall directly or through a subcontracting

arrangement, develop a loyalty program that recognizes and rewards regular lottery customers

who play both online and traditional lottery games of chance.

     (e) All revenues received from sales authorized by this section shall be deposited into the

general fund, and shall be distributed as aid to the cities and towns, subject to appropriation.

     (f) Any private vendor wishing to operate or offer a similar service in the state shall be

required to apply to the division for issuance of a private vendor fantasy sports license. No private

vendor shall operate or offer a similar service in the state without first obtaining a license. The

division shall establish an appropriate fee schedule for each license.

     (g) The director of the division is authorized to promulgate rules and regulations to

effectuate the provisions of this chapter.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO SPORTS, RACING AND ATHLETICS

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     This act would authorize the division of racing and athletics within the department of

business regulation to implement online games of skill, including so-called fantasy sports. The

division would develop a request for proposals utilizing the competitive sealed bid process that

solicits competitive bids from private vendors to develop any such online platform and such

platform shall maximize flexibility to allow for changes in technology and changes in consumer

behavior.

     This act would take effect upon passage.

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LC005058

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