2019 -- S 0911

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LC002605

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO-LOTTERY GAMES,

TABLE GAMES AND SPORTS WAGERING

     

     Introduced By: Senator Frank A. Ciccone

     Date Introduced: May 22, 2019

     Referred To: Senate Special Legislation and Veterans Affairs

     It is enacted by the General Assembly as follows:

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     SECTION 1. The general assembly hereby finds that:

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     (1) The state of Rhode Island operates casino gaming at the "Twin River Casino Hotel,"

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located at 100 Twin River Road in the town of Lincoln (the "Twin River Casino") and at the

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"Tiverton Casino Hotel," located at 777 Tiverton Casino Boulevard, in the town of Tiverton (the

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"Tiverton Casino"). The state of Rhode Island also operates video lottery games at the Twin River

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Casino and the Tiverton Casino.

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     (2) It is imperative that legislative action be taken to preserve and protect the state's

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ability to maximize revenues at the Twin River Casino and the Tiverton Casino in an increasingly

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competitive gaming market by expanding critical revenue-driving programs.

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     (3) The extension of credit to casino gaming and video lottery players (collectively,

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"players" or "patrons") is a vital customer service function that facilitates a gaming program's

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long-term success.

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     (4) While preserving and protecting the state's ability to maximize revenues in the

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competitive gaming market is imperative to the financial well-being of the state, the general

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assembly also recognizes the need to balance that concern with the financial well-being and

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safety of its citizens.

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     (5) While gaming and gambling can be a healthy source of recreation and entertainment

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enjoyed by many people, the general assembly must ensure that persons who obtain a line of

 

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credit from, or at, a state-operated gaming facility or casino are financially sound and financially

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capable of entering into agreements for a line of credit. Accordingly, pursuant to Pub. L. 2014,

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ch. 502 and Pub. L. 2014, ch. 533, as amended by Pub. L. 2016, ch. 5, Pub. L. 2016, ch. 6, and

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Pub. L. 2018, ch. 47, art. 4, the general assembly authorized the establishment of a program for

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the extension of credit to players at the Twin River Casino and the Tiverton Casino pursuant to

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the terms and conditions thereof and the rules and regulations submitted by the Twin River

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Casino and/or the Tiverton Casino and approved and promulgated by the division of lotteries.

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     (6) It is the intent of the general assembly to increase the limit on the amount of the line

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of credit that may be provided to an individual patron by, or at, a state-operated gaming facility or

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casino.

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     SECTION 2. Section 42-61.2-3.2 of the General Laws in Chapter 42-61.2 entitled

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"Video-Lottery Games, Table Games and Sports Wagering" is hereby amended to read as

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follows:

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     42-61.2-3.2. Gaming credit authorized.

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     (a) Authority. In addition to the powers and duties of the state lottery director under §§

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42-61-4, 42-61.2-3, 42-61.2-3.1 and 42-61.2-4, the division shall authorize each licensed, video-

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lottery retailer to extend credit to players pursuant to the terms and conditions of this chapter.

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     (b) Credit. Notwithstanding any provision of the general laws to the contrary, including,

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without limitation, § 11-19-17, except for applicable licensing laws and regulations, each

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licensed, video-lottery retailer may extend interest-free, unsecured credit to its patrons for the sole

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purpose of such patrons making wagers at table games and/or video-lottery terminals and/or for

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the purpose of making sports wagering bets, at the licensed, video-lottery retailer's facility subject

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to the terms and conditions of this chapter.

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     (c) Regulations. Each licensed, video-lottery retailer shall be subject to rules and

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regulations submitted by licensed, video-lottery retailers and subject to the approval of the

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division of lotteries regarding procedures governing the extension of credit and requirements with

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respect to a credit applicant's financial fitness, including, without limitation: annual income; debt-

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to-income ratio; prior credit history; average monthly bank balance; and/or level of play. The

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division of lotteries may approve, approve with modification, or disapprove any portion of the

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policies and procedures submitted for review and approval.

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     (d) Credit applications. Each applicant for credit shall submit a written application to the

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licensed, video-lottery retailer that shall be maintained by the licensed, video-lottery retailer for

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three (3) years in a confidential credit file. The application shall include the patron's name;

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address; telephone number; social security number; comprehensive bank account information; the

 

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requested credit limit; the patron's approximate amount of current indebtedness; the amount and

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source of income in support of the application; the patron's signature on the application; a

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certification of truthfulness; and any other information deemed relevant by the licensed, video-

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lottery retailer or the division of lotteries.

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     (e) Credit application verification. As part of the review of a credit application and before

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an application for credit is approved, the licensed, video-lottery retailer shall verify:

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     (1) The identity, creditworthiness, and indebtedness information of the applicant by

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conducting a comprehensive review of:

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     (i) The information submitted with the application;

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     (ii) Indebtedness information regarding the applicant received from a credit bureau;

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and/or

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     (iii) Information regarding the applicant's credit activity at other licensed facilities that

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the licensed, video-lottery retailer may obtain through a casino credit bureau and, if appropriate,

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through direct contact with other casinos.

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     (2) That the applicant's name is not included on an exclusion or self-exclusion list

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maintained by the licensed, video-lottery retailer and/or the division of lotteries.

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     (3) As part of the credit application, the licensed, video-lottery retailer shall notify each

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applicant in advance that the licensed, video-lottery retailer will verify the information in

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subsections (e)(1) and (e)(2) and may verify any other information provided by the applicant as

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part of the credit application. The applicant is required to acknowledge in writing that he or she

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understands that the verification process will be conducted as part of the application process and

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that he or she consents to having said verification process conducted.

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     (f) Establishment of credit. After a review of the credit application, and upon completion

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of the verification required under subsection (e), and subject to the rules and regulations approved

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by the division of lotteries, a credit facilitator may approve or deny an application for credit to a

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player. The credit facilitator shall establish a credit limit for each patron to whom credit is

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granted. The approval or denial of credit shall be recorded in the applicant's credit file that shall

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also include the information that was verified as part of the review process, and the reasons and

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information relied on by the credit facilitator in approving or denying the extension of credit and

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determining the credit limit. Subject to the rules and regulations approved by the division of

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lotteries, increases to an individual's credit limit may be approved by a credit facilitator upon

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receipt of a written request from the player after a review of updated financial information

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requested by the credit facilitator and re-verification of the player's credit information.

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     (g) Recordkeeping. Detailed information pertaining to all transactions affecting an

 

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individual's outstanding indebtedness to the licensed, video-lottery retailer shall be recorded in

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chronological order in the individual's credit file. The financial information in an application for

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credit and documents related thereto shall be confidential. All credit application files shall be

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maintained by the licensed, video-lottery retailer in a secure manner and shall not be accessible to

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anyone not a credit facilitator or a manager or officer of a licensed, video-lottery retailer

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responsible for the oversight of the extension of credit program.

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     (h) Reduction or suspension of credit. A credit facilitator may reduce a player's credit

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limit or suspend his or her credit to the extent permitted by the rules and regulations approved by

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the division of lotteries and shall reduce a player's credit limit or suspend a player's credit limit as

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required by said rules and regulations.

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     (i) Voluntary credit suspension. A player may request that the licensed, video-lottery

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retailer suspend or reduce his or her credit. Upon receipt of a written request to do so, the player's

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credit shall be reduced or suspended as requested. A copy of the request and the action taken by

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the credit facilitator shall be placed in the player's credit application file.

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     (j) Liability. In the event that a player fails to repay a debt owed to a licensed, video-

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lottery retailer resulting from the extension of credit by that licensed, video-lottery retailer,

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neither the state of Rhode Island nor the division of lotteries shall be responsible for the loss and

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said loss shall not affect net, table-game revenue or net terminal income. A licensed, video-lottery

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retailer, the state of Rhode Island, the division of lotteries, and/or any employee of a licensed,

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video-lottery retailer, shall not be liable in any judicial or administrative proceeding to any player,

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any individual, or any other party, including table game players or individuals on the voluntary

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suspension list, for any harm, monetary or otherwise, that may arise as a result of:

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     (1) Granting or denial of credit to a player;

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     (2) Increasing the credit limit of a player;

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     (3) Allowing a player to exercise his or her right to use credit as otherwise authorized;

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     (4) Failure of the licensed, video-lottery retailer to increase a credit limit;

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     (5) Failure of the licensed, video-lottery retailer to restore credit privileges that have been

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suspended, whether involuntarily or at the request of the table game patron; or

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     (6) Permitting or prohibiting an individual whose credit privileges have been suspended,

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whether involuntarily or at the request of the player, to engage in gaming activity in a licensed

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facility while on the voluntary credit suspension list.

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     (k) Limitations. Notwithstanding any other provision of this chapter, for any extensions

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of credit by a licensed video-lottery retailer, the maximum amount of outstanding credit per

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player shall be fifty thousand dollars ($50,000) one hundred thousand dollars ($100,000).

 

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     SECTION 3. Except to the extent amended by this act, the terms, conditions, provisions

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and definitions of Pub. L. 2014, ch. 502, § 3; Pub. L. 2014, ch. 533, § 3; Pub. L. 2016, ch. 5, § 2;

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Pub. L. 2016, ch. 6, § 2; Pub. L. 2018, ch. 47, art. 4, § 4 (in each case as the more recent law may

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have amended an earlier law or laws), shall remain in full force and effect.

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     SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO-LOTTERY GAMES,

TABLE GAMES AND SPORTS WAGERING

***

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     This act would provide that licensed video-lottery retailers may extend credit of up to one

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hundred thousand dollars ($100,000) per player from the current limit of fifty thousand dollars

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($50,000) per player.

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     This act would take effect upon passage.

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