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 | |
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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: | |
1 | SECTION 1. The general assembly hereby finds that: |
2 | (1) The state of Rhode Island operates casino gaming at the "Twin River Casino Hotel," |
3 | located at 100 Twin River Road in the town of Lincoln (the "Twin River Casino") and at the |
4 | "Tiverton Casino Hotel," located at 777 Tiverton Casino Boulevard, in the town of Tiverton (the |
5 | "Tiverton Casino"). The state of Rhode Island also operates video lottery games at the Twin River |
6 | Casino and the Tiverton Casino. |
7 | (2) It is imperative that legislative action be taken to preserve and protect the state's |
8 | ability to maximize revenues at the Twin River Casino and the Tiverton Casino in an increasingly |
9 | competitive gaming market by expanding critical revenue-driving programs. |
10 | (3) The extension of credit to casino gaming and video lottery players (collectively, |
11 | "players" or "patrons") is a vital customer service function that facilitates a gaming program's |
12 | long-term success. |
13 | (4) While preserving and protecting the state's ability to maximize revenues in the |
14 | competitive gaming market is imperative to the financial well-being of the state, the general |
15 | assembly also recognizes the need to balance that concern with the financial well-being and |
16 | safety of its citizens. |
17 | (5) While gaming and gambling can be a healthy source of recreation and entertainment |
18 | enjoyed by many people, the general assembly must ensure that persons who obtain a line of |
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1 | credit from, or at, a state-operated gaming facility or casino are financially sound and financially |
2 | capable of entering into agreements for a line of credit. Accordingly, pursuant to Pub. L. 2014, |
3 | ch. 502 and Pub. L. 2014, ch. 533, as amended by Pub. L. 2016, ch. 5, Pub. L. 2016, ch. 6, and |
4 | Pub. L. 2018, ch. 47, art. 4, the general assembly authorized the establishment of a program for |
5 | the extension of credit to players at the Twin River Casino and the Tiverton Casino pursuant to |
6 | the terms and conditions thereof and the rules and regulations submitted by the Twin River |
7 | Casino and/or the Tiverton Casino and approved and promulgated by the division of lotteries. |
8 | (6) It is the intent of the general assembly to increase the limit on the amount of the line |
9 | of credit that may be provided to an individual patron by, or at, a state-operated gaming facility or |
10 | casino. |
11 | SECTION 2. Section 42-61.2-3.2 of the General Laws in Chapter 42-61.2 entitled |
12 | "Video-Lottery Games, Table Games and Sports Wagering" is hereby amended to read as |
13 | follows: |
14 | 42-61.2-3.2. Gaming credit authorized. |
15 | (a) Authority. In addition to the powers and duties of the state lottery director under §§ |
16 | 42-61-4, 42-61.2-3, 42-61.2-3.1 and 42-61.2-4, the division shall authorize each licensed, video- |
17 | lottery retailer to extend credit to players pursuant to the terms and conditions of this chapter. |
18 | (b) Credit. Notwithstanding any provision of the general laws to the contrary, including, |
19 | without limitation, § 11-19-17, except for applicable licensing laws and regulations, each |
20 | licensed, video-lottery retailer may extend interest-free, unsecured credit to its patrons for the sole |
21 | purpose of such patrons making wagers at table games and/or video-lottery terminals and/or for |
22 | the purpose of making sports wagering bets, at the licensed, video-lottery retailer's facility subject |
23 | to the terms and conditions of this chapter. |
24 | (c) Regulations. Each licensed, video-lottery retailer shall be subject to rules and |
25 | regulations submitted by licensed, video-lottery retailers and subject to the approval of the |
26 | division of lotteries regarding procedures governing the extension of credit and requirements with |
27 | respect to a credit applicant's financial fitness, including, without limitation: annual income; debt- |
28 | to-income ratio; prior credit history; average monthly bank balance; and/or level of play. The |
29 | division of lotteries may approve, approve with modification, or disapprove any portion of the |
30 | policies and procedures submitted for review and approval. |
31 | (d) Credit applications. Each applicant for credit shall submit a written application to the |
32 | licensed, video-lottery retailer that shall be maintained by the licensed, video-lottery retailer for |
33 | three (3) years in a confidential credit file. The application shall include the patron's name; |
34 | address; telephone number; social security number; comprehensive bank account information; the |
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1 | requested credit limit; the patron's approximate amount of current indebtedness; the amount and |
2 | source of income in support of the application; the patron's signature on the application; a |
3 | certification of truthfulness; and any other information deemed relevant by the licensed, video- |
4 | lottery retailer or the division of lotteries. |
5 | (e) Credit application verification. As part of the review of a credit application and before |
6 | an application for credit is approved, the licensed, video-lottery retailer shall verify: |
7 | (1) The identity, creditworthiness, and indebtedness information of the applicant by |
8 | conducting a comprehensive review of: |
9 | (i) The information submitted with the application; |
10 | (ii) Indebtedness information regarding the applicant received from a credit bureau; |
11 | and/or |
12 | (iii) Information regarding the applicant's credit activity at other licensed facilities that |
13 | the licensed, video-lottery retailer may obtain through a casino credit bureau and, if appropriate, |
14 | through direct contact with other casinos. |
15 | (2) That the applicant's name is not included on an exclusion or self-exclusion list |
16 | maintained by the licensed, video-lottery retailer and/or the division of lotteries. |
17 | (3) As part of the credit application, the licensed, video-lottery retailer shall notify each |
18 | applicant in advance that the licensed, video-lottery retailer will verify the information in |
19 | subsections (e)(1) and (e)(2) and may verify any other information provided by the applicant as |
20 | part of the credit application. The applicant is required to acknowledge in writing that he or she |
21 | understands that the verification process will be conducted as part of the application process and |
22 | that he or she consents to having said verification process conducted. |
23 | (f) Establishment of credit. After a review of the credit application, and upon completion |
24 | of the verification required under subsection (e), and subject to the rules and regulations approved |
25 | by the division of lotteries, a credit facilitator may approve or deny an application for credit to a |
26 | player. The credit facilitator shall establish a credit limit for each patron to whom credit is |
27 | granted. The approval or denial of credit shall be recorded in the applicant's credit file that shall |
28 | also include the information that was verified as part of the review process, and the reasons and |
29 | information relied on by the credit facilitator in approving or denying the extension of credit and |
30 | determining the credit limit. Subject to the rules and regulations approved by the division of |
31 | lotteries, increases to an individual's credit limit may be approved by a credit facilitator upon |
32 | receipt of a written request from the player after a review of updated financial information |
33 | requested by the credit facilitator and re-verification of the player's credit information. |
34 | (g) Recordkeeping. Detailed information pertaining to all transactions affecting an |
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1 | individual's outstanding indebtedness to the licensed, video-lottery retailer shall be recorded in |
2 | chronological order in the individual's credit file. The financial information in an application for |
3 | credit and documents related thereto shall be confidential. All credit application files shall be |
4 | maintained by the licensed, video-lottery retailer in a secure manner and shall not be accessible to |
5 | anyone not a credit facilitator or a manager or officer of a licensed, video-lottery retailer |
6 | responsible for the oversight of the extension of credit program. |
7 | (h) Reduction or suspension of credit. A credit facilitator may reduce a player's credit |
8 | limit or suspend his or her credit to the extent permitted by the rules and regulations approved by |
9 | the division of lotteries and shall reduce a player's credit limit or suspend a player's credit limit as |
10 | required by said rules and regulations. |
11 | (i) Voluntary credit suspension. A player may request that the licensed, video-lottery |
12 | retailer suspend or reduce his or her credit. Upon receipt of a written request to do so, the player's |
13 | credit shall be reduced or suspended as requested. A copy of the request and the action taken by |
14 | the credit facilitator shall be placed in the player's credit application file. |
15 | (j) Liability. In the event that a player fails to repay a debt owed to a licensed, video- |
16 | lottery retailer resulting from the extension of credit by that licensed, video-lottery retailer, |
17 | neither the state of Rhode Island nor the division of lotteries shall be responsible for the loss and |
18 | said loss shall not affect net, table-game revenue or net terminal income. A licensed, video-lottery |
19 | retailer, the state of Rhode Island, the division of lotteries, and/or any employee of a licensed, |
20 | video-lottery retailer, shall not be liable in any judicial or administrative proceeding to any player, |
21 | any individual, or any other party, including table game players or individuals on the voluntary |
22 | suspension list, for any harm, monetary or otherwise, that may arise as a result of: |
23 | (1) Granting or denial of credit to a player; |
24 | (2) Increasing the credit limit of a player; |
25 | (3) Allowing a player to exercise his or her right to use credit as otherwise authorized; |
26 | (4) Failure of the licensed, video-lottery retailer to increase a credit limit; |
27 | (5) Failure of the licensed, video-lottery retailer to restore credit privileges that have been |
28 | suspended, whether involuntarily or at the request of the table game patron; or |
29 | (6) Permitting or prohibiting an individual whose credit privileges have been suspended, |
30 | whether involuntarily or at the request of the player, to engage in gaming activity in a licensed |
31 | facility while on the voluntary credit suspension list. |
32 | (k) Limitations. Notwithstanding any other provision of this chapter, for any extensions |
33 | of credit by a licensed video-lottery retailer, the maximum amount of outstanding credit per |
34 | player shall be fifty thousand dollars ($50,000) one hundred thousand dollars ($100,000). |
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1 | SECTION 3. Except to the extent amended by this act, the terms, conditions, provisions |
2 | and definitions of Pub. L. 2014, ch. 502, § 3; Pub. L. 2014, ch. 533, § 3; Pub. L. 2016, ch. 5, § 2; |
3 | Pub. L. 2016, ch. 6, § 2; Pub. L. 2018, ch. 47, art. 4, § 4 (in each case as the more recent law may |
4 | have amended an earlier law or laws), shall remain in full force and effect. |
5 | SECTION 4. This act shall take effect upon passage. |
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LC002605 | |
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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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1 | This act would provide that licensed video-lottery retailers may extend credit of up to one |
2 | hundred thousand dollars ($100,000) per player from the current limit of fifty thousand dollars |
3 | ($50,000) per player. |
4 | This act would take effect upon passage. |
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LC002605 | |
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