2023 -- H 6313

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LC002809

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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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: Representatives Baginski, and Finkelman

     Date Introduced: April 21, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-61.2-1 of the General Laws in Chapter 42-61.2 entitled "Video

Lottery Games, Table Games and Sports Wagering" is hereby amended to read as follows:

     42-61.2-1. Definitions.

     For the purpose of this chapter, the following words shall mean:

     (1) “2017 Budget Act” means 2017 — H 5175 Substitute A, as amended, entitled “An Act

Relating to Making Appropriations for the Support of the State for the Fiscal Year ending June 30,

2018,” which Act was signed into law by the Governor of Rhode Island on August 3, 2017.

     (2) “Casino gaming” means any and all table and casino-style games played with cards,

dice, or equipment, for money, credit, or any representative of value; including, but not limited to:

roulette, blackjack, big six, craps, poker, baccarat, paigow, any banking or percentage game, or any

other game or device included within the definition of Class III gaming as that term is defined in

Section 2703(8) of Title 25 of the United States Code and that is approved by the state through the

division of state lottery.

     (3) “Central communication system” means a system approved by the Division, linking all

Video Lottery Terminals at a licensed video lottery retailer location to provide auditing program

information and any other information determined by the Division. In addition, the central

communications system must provide all computer hardware and related software necessary for the

establishment and implementation of a comprehensive system as required by the Division.

     (4) “Collegiate sports or athletic event” means a sporting event offered or sponsored by or

played in connection with, a public or private institution that offers educational services beyond

the secondary level, but shall not include a collegiate sports contest or collegiate athletic event that

takes place in Rhode Island or a sports contest or athletic event in which any Rhode Island college

team participates regardless of where the event takes place unless such contest or event is part of a

collegiate tournament.

     (5) “Collegiate tournament” means a series of collegiate sports or athletic events involving

four (4) or more collegiate teams that make up a single unit of competition.

     (5)(6) “Consolidated promotional points program” means, collectively, the “Initial

Promotional Points Program” and the “Supplementary Promotional Points Program” applicable to

the Lincoln gaming facility and the “Initial Promotional Points Program” and the “Supplementary

Promotional Points Program” applicable to the Tiverton gaming facility, with each of the terms

“Initial Promotional Points Program” and “Supplementary Promotional Points Program” having

the meanings given such terms in the 2017 Budget Act.

     (6)(7) “Credit facilitator” means any employee of a licensed video lottery retailer approved

in writing by the Division whose responsibility is to, among other things, review applications for

credit by players, verify information on credit applications, grant, deny, and suspend credit,

establish credit limits, increase and decrease credit limits, and maintain credit files, all in

accordance with this chapter and rules and regulations approved by the Division.

     (7)(8) “DBR” means the department of business regulation, division of gaming and

athletics licensing, and/or any successor in interest thereto.

     (8)(9) “Director” means the director of the Division.

     (9)(10) “Division” means the state lottery division of the department of revenue and/or any

successor in interest thereto.

     (10)(11) “Hosting facility” refers to the Lincoln gaming facility and the Tiverton gaming

facility.

     (11)(12) “IGT” means IGT Global Solutions Corporation, a Delaware corporation.

     (12)(13) “Licensed video lottery retailer” means a pari-mutuel licensee specifically

licensed by the Director subject to the approval of the Division to become a licensed video lottery

retailer.

     (13)(14) “Lincoln gaming facility” means the gaming and entertainment facility located at

100 Twin River Road in the town of Lincoln, Rhode Island (sometimes referred to as “Twin River”

or the “Twin River gaming facility”).

     (14)(15) “Marketing Year” means the fiscal year of the state.

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     (15)(16) “Net table-game revenue” means win from table games minus counterfeit

currency.

     (16)(17) “Net terminal income” means currency placed into a Video Lottery Terminal less

credits redeemed for cash by players.

     (17)(18) “Newport Grand” means Newport Grand, LLC, a Rhode Island limited-liability

company, successor to Newport Grand Jai Alai, LLC, and each permitted successor to and assignee

of Newport Grand, LLC under the Newport Grand Master Contract, including, without limitation,

Premier (as defined in subsection (25) of this section) and/or Twin River-Tiverton (as defined in

subsection (40) of this section) provided it is a pari-mutuel licensee (as defined in this section);

provided, further, however, where the context indicates that the term is referring to the physical

facility, then it shall mean the gaming and entertainment facility located at 150 Admiral Kalbfus

Road, Newport, Rhode Island.

     (18)(19) “Newport Grand Marketing Year” means each fiscal year of the state or a portion

thereof between November 23, 2010, and the termination date of the Newport Grand Master

Contract.

     (19)(20) “Newport Grand Master Contract” means that certain master video lottery

terminal contract made as of November 23, 2005, by and between the division of lotteries of the

Rhode Island department of administration and Newport Grand, as amended and extended from

time to time as authorized therein and/or as such Newport Grand Master Contract may be assigned

as permitted therein.

     (20)(21) “Online gaming account” means an account opened by a patron that such patron

shall use for the deposit and withdrawal of funds used for online sports wagering.

     (21)(22) “Online sports wagering” means engaging in the act of sports wagering by the

placing of wagers on sporting events or a combination of sporting events, or on the individual

performance statistics of athletes in a sporting event or a combination of sporting events, over the

internet through computers, mobile applications on mobile devices or other interactive devices

approved by the Division, which wagers are accepted by a server-based gaming system located at

the premises of a hosting facility authorized to accept sports wagers and administer payoffs of

winning sports wagers; all such wagers shall be deemed to be placed and accepted at the premises

of a hosting facility.

     (22)(23) “Online sports-wagering revenue” means:

     (i) The total of cash or cash equivalents received from online sports wagering minus the

total of:

     (I) Cash or cash equivalents paid to players as a result of online sports wagering;

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     (II) Marketing expenses related to online sports wagering as agreed to by the Division, the

sports-wagering vendor, and the host facilities, as approved by the Division; and

     (III) Any federal excise taxes (if applicable).

     (ii) The term does not include any of the following:

     (I) Counterfeit cash.

     (II) Coins or currency of other countries received as a result of online sports wagering,

except to the extent that the coins or currency are readily convertible to cash.

     (III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports-wagering

vendor for which the hosting facility or sports-wagering vendor is not reimbursed.

     (IV) Free play provided by the hosting facility or sports-wagering vendor as authorized by

the Division to a player and subsequently “won back” by the hosting facility or sports-wagering

vendor, for which the hosting facility or sports-wagering vendor can demonstrate that it or its

affiliate has not been reimbursed in cash.

     (23)(24) “Pari-mutuel licensee” means:

     (i) An entity licensed pursuant to § 41-3.1-3; and/or

     (ii) An entity licensed pursuant to § 41-7-3.

     (24)(25) “Payoff,” when used in connection with sports wagering, means cash or cash

equivalents paid to a player as a result of the player’s winning a sports wager. A “payoff” is a type

of “prize,” as the term “prize” is used in chapters 61, 61.2, and 61.3 of this title.

     (25)(26) “Premier” means Premier Entertainment II, LLC and/or its successor in interest

by reason of the acquisition of the stock, membership interests, or substantially all of the assets of

such entity.

     (26)(27) “Prior marketing year,” means, with respect to a marketing year, the most recent

previous marketing year during which the Division operated a majority of the authorized video

lottery games at each of the Lincoln gaming facility and the Tiverton gaming facility for at least

360 days (or 361 days in the case there are 366 days in such marketing year). For the avoidance of

doubt, because the Division will not have operated a majority of the authorized video lottery games

at the Lincoln gaming facility and at the Tiverton gaming facility for at least 361 days during the

marketing year expiring on June 30, 2020, the prior marketing year with respect to the marketing

year expiring on June 30, 2021, shall be the marketing year expiring on June 30, 2019.

     (27)(28) “Promotional points” has the meaning given such term in the 2017 Budget Act.

     (28)(29) “Rake” means a set fee or percentage of cash and chips representing cash wagered

in the playing of a nonbanking table game assessed by a table games retailer for providing the

services of a dealer, gaming table, or location, to allow the play of any nonbanking table game.

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     (29)(30) “Server-based gaming system” means all hardware, software, and

communications devices that comprise a system utilized for the purpose of offering an electronic

platform used in connection with the process of placing and accepting sports wagers.

     (30)(31) “Sporting event” means any professional sport or athletic event, any Olympic or

international sports competition event, and any collegiate sport or athletic event, and any other

event authorized by the division or any portion thereof, including, but not limited to, the individual

performance statistics of athletes in a sports event or combination of sports events, except “sporting

event” shall not include a :

     (i) The individual performance statistics of athletes in a collegiate sports or athletic event

which is part of a collegiate tournament:

     (A) Takes place in Rhode Island; or

     (B) In which any Rhode Island college team participates regardless of where the event

takes place; or

     (ii) Any other prohibited sporting event as determined by the division.

     (31)(32) “Sports wagering” means the business of accepting wagers on sporting events or

a combination of sporting events, or on the individual performance statistics of athletes in a sporting

event or combination of sporting events, by any system or method of wagering. The term includes,

but is not limited to, exchange wagering, parlays, over-under, moneyline, pools, and straight bets,

and the term includes the placement of such bets and wagers. However, the term does not include,

without limitation, the following:

     (i) Lotteries, including video lottery games and other types of casino gaming operated by

the state, through the Division, as of June 22, 2018.

     (ii) Pari-mutuel betting on the outcome of thoroughbred or harness horse racing, or

greyhound dog racing, including but not limited to, pari-mutuel wagering on a race that is

“simulcast” (as defined in § 41-11-1), as regulated elsewhere pursuant to the general laws,

including in chapters 3, 3.1, 4, and 11 of title 41.

     (iii) Off-track betting on racing events, as regulated elsewhere pursuant to the general laws,

including in chapter 10 of title 41.

     (iv) Wagering on the respective scores or points of the game of jai alai or pelota and the

sale of pari-mutuel pools related to such games, as regulated elsewhere pursuant to the general

laws, including in chapter 7 of title 41.

     (v) Lotteries, charitable gaming, games of chance, bingo games, raffles, and pull-tab lottery

tickets, to the extent permitted and regulated pursuant to chapter 19 of title 11.

     (32)(33) “Sports-wagering device” means any mechanical, electrical, or computerized

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contrivance, terminal, machine, or other device, apparatus, equipment, or supplies approved by the

Division and used to conduct sports wagering.

     (33)(34) “Sports-wagering revenue” means:

     (i) The total of cash or cash equivalents received from sports wagering minus the total of:

     (I) Cash or cash equivalents paid to players as a result of sports wagering;

     (II) The annual flat fee to the host communities as defined by § 42-61.2-5(c);

     (III) Marketing expenses related to sports wagering as agreed to by the Division, the sports-

wagering vendor, and the host facilities, as approved by the Division; and

     (IV) Any federal excise taxes (if applicable).

     (ii) The term does not include any of the following:

     (I) Counterfeit cash.

     (II) Coins or currency of other countries received as a result of sports wagering, except to

the extent that the coins or currency are readily convertible to cash.

     (III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports-wagering

vendor for which the hosting facility or sports-wagering vendor is not reimbursed.

     (IV) Free play provided by the hosting facility or sports-wagering vendor as authorized by

the Division to a patron and subsequently “won back” by the hosting facility or sports-wagering

vendor, for which the hosting facility or sports-wagering vendor can demonstrate that it or its

affiliate has not been reimbursed in cash.

     (34)(35) “Sports-wagering vendor” means any entity authorized by the Division to operate

sports betting on the Division’s behalf in accordance with this chapter.

     (35)(36) “Table game” or “Table gaming” means that type of casino gaming in which table

games are played for cash or chips representing cash, or any other representation of value that has

been approved by the Division, using cards, dice, or equipment and conducted by one or more live

persons.

     (36)(37) “Table-game retailer” means a retailer authorized to conduct table gaming

pursuant to § 42-61.2-2.1 or § 42-61.2-2.3.

     (37)(38) “Technology provider” means any individual, partnership, corporation, or

association that designs, manufactures, installs, maintains, distributes, or supplies Video Lottery

Terminals or associated equipment for the sale or use in this state.

     (38)(39) “Tiverton gaming facility” means the gaming and entertainment facility located

at the intersection of William S. Canning Boulevard and Stafford Road in the town of Tiverton,

Rhode Island (sometimes referred to as “Twin River-Tiverton”).

     (39)(40) “Twin River” (sometimes referred to as “UTGR”) means UTGR, Inc., a Delaware

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corporation, and each permitted successor to and assignee of UTGR, Inc.; provided, however,

where the context indicates that the term is referring to a physical facility, then “Twin River” shall

mean the Lincoln gaming facility.

     (40)(41) “Twin River-Tiverton” means Twin River-Tiverton, LLC and/or its successor in

interest by reason of the acquisition of the stock, membership interests, or substantially all of the

assets of such entity; provided, however, where the context indicates that the term is referring to a

physical facility, then “Twin River-Tiverton” shall mean the Tiverton gaming facility.

     (41)(42) “Twin River-Tiverton Marketing Year” has the same meaning as Marketing Year

(as defined in subsection (14) of this section).

     (42)(43) “Twin River-Tiverton Master Contract” has the same meaning as Newport Grand

Master Contract (as defined in subsection (19) of this section).

     (43)(44) “UTGR Master Contract” means that certain master video lottery terminal

contract made as of July 1, 2005, by and between the division of lotteries of the Rhode Island

department of administration (now the division of lotteries of the Rhode Island department of

revenue) and Twin River, as amended and extended from time to time as authorized therein and/or

as such UTGR Master Contract may be assigned as permitted therein.

     (44)(45) “Video Lottery Agreement” means that certain Video Lottery Central Computer

System Agreement dated as of December 20, 2001, by and between IGT and the Division, as

amended, extended, assigned, and assumed from time to time.

     (45)(46) “Video lottery games” means lottery games played on Video Lottery Terminals

controlled by the Division.

     (46)(47) “Video lottery terminal” means any electronic computerized video game machine

that, upon the insertion of cash or any other representation of value that has been approved by the

Division, is available to play a video game authorized by the Division, and that uses a video display

and microprocessors in which, by chance, the player may receive free games or credits that can be

redeemed for cash. The term does not include a machine that directly dispenses coins, cash, or

tokens.

     (47)(48) “VLT Agreement” means that certain Video Lottery Terminal Technology

Provider License Agreement dated as of September 28, 2000, by and between IGT and the Division,

as amended, extended, assigned, and assumed from time to time.

     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 STATE AFFAIRS AND GOVERNMENT -- VIDEO LOTTERY GAMES,

TABLE GAMES AND SPORTS WAGERING

***

     This act would amend the definitions of "collegiate sports or athletic event" and "sporting

event" within the chapter on "video lottery games, table games and sports wagering".

     This act would take effect upon passage.

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