Chapter 107
2013 -- S 0979 SUBSTITUTE A AS AMENDED
Enacted 06/18/13
A N A C T
RELATING TO
SPORTS, RACING, AND ATHLETICS -- CASINO GAMING
Introduced By: Senators Goodwin, Felag, McCaffrey, Bates, and Ruggerio
Date Introduced: June 05, 2013
It is enacted by the
General Assembly as follows:
SECTION
1. Section 41-9-1 of the General Laws in Chapter 41-9 entitled
"Establishment
and Extension of Gambling
Activities and Other Facilities" is hereby amended to read as follows:
41-9-1. "Gambling"
and "gambling facilities" defined. -- (a) As used in this
chapter,
the term "gambling" shall include, but not
be limited to, horseracing, dog racing, and jai alai;
however, casino gaming shall be governed by the
provisions of chapter 9.1 of title 41, chapters
42-61, 42-61.2, and 42-61.3. The term "gambling facility" as used in
this chapter means a
building or enclosure in which any gambling activity
including, but not limited to, the foregoing
is played or conducted.
(b) The term
"gambling facility" shall also include any building, enclosure or
other
improvement designed, constructed, or used in
connection with an overall plan or project
involving the establishment of any gambling activity;
provided, however, that this sentence shall
not apply to any gambling facility licensed prior to
July 3, 1998.
SECTION
2. Chapter 41-9.1 of the General Laws entitled "The Rhode Island Gaming
Control and Revenue
Act" is hereby repealed in its entirety.
CHAPTER
41-9.1
The
41-9.1-1.
Title. -- This chapter shall be known as the "Rhode Island
Gaming Control and
Revenue Act."
41-9.1-2.
Legislative findings. -- The general assembly makes the
following findings:
(1) In accord with
R.I. Const. Art. VI, section 22, only the people of the State of
Island can determine whether the state should pursue
casino gaming as a source of revenue;
(2) The people
should be able to make this determination in a manner that is consistent
with the
(3) The people
should be able to exercise their right and their elected representatives
should be able to implement the people's determination
based upon clear and objective criteria;
(4) A potential casino
licensee should be provided with clear and objective criteria;
(5) Casino states
have diverse regulatory schemes, but all have strong legislative and
regulatory oversight to ensure integrity of casino
operations and to maintain public confidence;
(6) To ensure the
integrity of the commercial casino gaming industry and its reputation
in
enforcement oversight;
(7) There are
socio-economic costs that expanded gaming may impose on communities
and the state;
(8) Problem gambling
already exists in
introduction of casino gaming;
(9) The state of
take measures designed to detect the extent of problem
gambling, educate the public, and assure
availability of resources for treatment.
41-9.1-3.
Definitions. -- As used in this chapter, the following terms are
defined as
follows:
(1) "Adjusted
gross receipts" means the gross receipts less winnings paid to wagerers.
(2)
"Affiliate" means a person who, directly or indirectly, through one
or more
intermediaries, controls, is controlled by, or is
under common control with; is in a partnership
(general or limited) or joint venture relationship
with; or is a co-shareholder of a corporation, a
co-member of a limited liability company, or
co-partner in a limited liability partnership with a
person who holds or applies for a casino license under
this chapter.
(3) "Affiliated
company" means any form of business organization which controls, is
controlled by or is under common control with, is in a
partnership (general or limited) or joint
venture relationship with, or is a co-shareholder of a
corporation, a co-member of a limited
liability company, or co-partner in a limited
liability partnership with a person who holds or
applies for a casino license under this chapter.
(4)
"Agent" means any person who is employed by any agency of the state
other than the
state lottery division, the state police, or attorney
general who is assigned to perform full-time
services on behalf of or for the benefit of the state
lottery division regardless of the title or
position held by that person.
(5)
"Applicant" means any person who applies for any right, license or
registration under
this chapter:
(6)
"Casino" means a building in which gaming is conducted.
(7) "Casino
licensee" or "casino operator" means any person licensed to
conduct gaming
operations according to the provisions of this
chapter.
(8)
"Chairperson" means the chairperson of the state lottery division.
(9)
"Commission" means the state lottery division as created by chapter
61 of title 42.
(10)
"Company" means a sole proprietorship, corporation partnership
(general or
limited), limited liability partnership, limited
liability company, trust, association, joint stock
company, joint venture tribal corporation or other form
of business organization.
(11)
"Compensation" means any money, thing of value or financial benefit
conferred on
or received by a person in return for services
rendered or to be rendered, whether by that person
or another.
(12) "Conflict of
interest" means a situation in which the private interest of a member,
employee, or agent of the state lottery division may
influence the judgment of the member,
employee, or agent in the performance of his or her
public duty under this chapter. A conflict of
interest includes, but is not limited to, the
following:
(i)
Any conduct that would lead a reasonable person knowing all of the
circumstances, to
conclude that the member, employee, or agent of the
state lottery division is biased against or in
favor of an applicant.
(ii) Acceptance of
any form of compensation other than from the state lottery division,
for any services rendered as part of or related to the
official duties of the member, employee, or
agent for the state lottery division.
(iii) Participation
in any business being transacted with or before the state lottery
division, in which the member, employee, or agent of
the state lottery division, or his or her
parent, spouse or child, has a financial interest.
(iv) Use of the
position, title, or any related authority of the member, employee, or agent
of the state lottery division in a manner designed for
personal gain or benefit.
(v) Demonstration
through work or other action in the performance of the official duties
of the member, employee, or agent of the state lottery
division of any preferential attitude or
treatment of any person.
(13)
"Control" means having a greater than twenty percent (20%) direct or
indirect
pecuniary interest in the gaming operation with
respect to which the license is sought.
(14)
"Development agreement" means a written agreement between an
applicant for a
casino license and the Town of
to, approval of the location of the site and the
process for addressing and approving zoning, land
use, utility and other essential services, on-site and
off-site improvements, local impacts and
construction and operational issues.
(15)
"Disciplinary action" is an action by the state lottery division
suspending or
revoking a license, fining, excluding, reprimanding or
otherwise penalizing a person for violating
this chapter or rules promulgated by the state lottery
division.
(16) "Financial
interest" or "financially interested" means any interest in
investments,
awarding of contracts, grants, loans, purchases,
leases, sales, or similar matters under
consideration or consummated by the state lottery
division. A member, employee, or agent of the
state lottery division will be considered to have a
financial interest in a matter under consideration
if any of the following circumstances exist:
(i)
He or she owns a five percent (5%) or greater direct or indirect pecuniary
interest in
any party to the matter under consideration or
consummated by the state lottery division; or
(ii) He or she is
employed by or is an independent contractor for a party to the matter
under consideration or consummated by the state lottery
division.
(17) "Gambling
game" means any game played with cards, dice, equipment or a
machine, including any mechanical, electromechanical
or electronic device which shall include
computers and cashless wagering systems, for money,
credit, or any representative of value;
including, but not limited to faro, monte, roulette, keno, bingo fan tan, twenty-one,
blackjack,
seven and a half, klondike,
craps, poker, chuck a luck, Chinese chuck a luck (dai
shu), wheel of
fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingui,
slot machine, any banking
or percentage game, or any other game or device
approved by the state lottery division, but does
not include games played with cards in private homes
or residences in which no person makes
money for operating the game.
(18)
"Game" means any banking or percentage game located exclusively
within a
licensed casino, which is played with cards, dice, or
any electronic, electrical, or mechanical
device or machine for money, property, or any thing of
value.
(19)
"Gaming" means to deal, operate, carry on, conduct, maintain or
expose or offer for
play any gambling game or gaming operation.
(20) "Gaming
device" means any equipment or mechanical, electromechanical, or
electronic contrivance component or machine used
directly or indirectly in connection with
gaming or any game which affects the result of a wager
by determining win or loss. The term
includes a system for processing information, which can
alter the normal criteria of random
selection which affects the operation of any game or
which determines the outcome of a game.
The term does not include a system or device, which
affects a game solely by stopping its
operation so that the outcome remains undetermined.
(21) "Gaming
operation" means the conduct of authorized gambling games in a casino
pursuant to this chapter but does not include those
operations governed by chapters 61 and 61.2
of Title 42.
(22) "Gaming
supplier" means any person who supplies, sells or leases or contracts to
sell or lease gaming devices, equipment, or supplies
to a holder of a license or a casino gaming
operator.
(23) "Gaming
supplier permit" means the permit of a gaming supplier.
(24) "Gaming
supplies" means all materials and supplies other than gaming devices
which the state lottery division finds or determines
to be used or expended in gaming operations
or activities and that can impact the outcome of game.
(25) "Gross
receipts" means the total of all sums including valid or invalid checks,
currency, tokens, coupons, vouchers, or instruments of
monetary value whether collected or
uncollected, received by a casino licensee from
gaming, including all entry fees assessed for
tournaments or other contests less a deduction for
uncollectible gaming receivables not to exceed
the uncollectible amounts owed as a result of wagers
placed at or through a gambling game or
four percent (4%) of the total gross receipts,
whichever is less. The licensee shall not receive the
deduction unless the licensee provides written proof
to the state treasurer of the uncollected
gaming receivable and has complied with all rules
promulgated by the state lottery division
regarding the issuance of credit and the collection of
amounts due under a credit extension.
(26)
"Institutional investor" means a person that is:
(a) A plan or trust
established and maintained by the
or a political subdivision of a state for the benefit
of its respective employees.
(b) An investment
company that is registered under the Investment Company Act of
1940.
(c) A Collective
Investment Trust organized by a bank under Part Nine of the rules of the
Comptroller of the Currency.
(d) A closed end
investment trust registered with the United States Securities and
Exchange Board.
(e) A mutual fund.
(f) A life insurance
company or property and casualty insurance company.
(g) A federal or
state bank.
(h) An investment
advisor registered under the Investment Advisors Act of 1940.
(i)
Such other similar regulated entities as may be approved by the state lottery
division
for good cause.
(27)
"Institutional lender" means a person that is:
(a) An insurance
company regulated by any state of the
(b) Any investment
company registered under the Investment Company Act of 1940.
(c) Any plan
established and maintained by a state, its political subdivision or any
agency or instrumentality of a state or its political
subdivisions for the benefit of its employees.
(d) Any trust fund,
the trustee of which is a bank or trust.
(e) Any investment
adviser registered with the United States Securities and Exchange
Board.
(f) Any real estate
investment trust registered with the United States Securities and
Exchange Board.
(g) Any dealer
registered pursuant to section 15 of the Securities and Exchange Act of
1934.
(h) Any qualified
institutional buyer, as defined in Rule 144A under the Securities Act of
1933 and any entity, all of the equity owners of which
are qualified institutional buyers, as
defined in rule 144A under the Securities Act of 1933,
acting for its own account or the accounts
of other qualified institutional buyers.
(i)
Any bank as defined in section 3(a)(2) of the Securities Act of 1933, any
savings and
loan association or other institution as referenced in
section 3(a)(5)(A) of the Securities Act of
1933, or any foreign bank or savings and loan
association or equivalent institution or any
investment fund that participates in a bank
syndication, and any purchaser that takes an
assignment or other participation interest in the bank
syndication.
(j) Any investor or
group of investors purchasing debt securities of a licensee, permittee,
or casino gaming operator, or a subsidiary of a
licensee, permittee or casino gaming operator, in
any public offering registered pursuant to the Securities
Act of 1933 or through any private
placement, and any investor purchasing such securities
in a subsequent sale; however, such
securities are widely held and freely traded, and the
investor holds no more than twenty percent
(20%) of a licensee, permittee
or casino gaming operator's total debt or fifty percent (50%) of a
material debt issue unless otherwise approved by the
state lottery division, so as not to give such
investor the ability to control a licensee, permittee, or casino gaming operator.
(k) Any business
development company as defined in section 2(a)(48) of the Investment
Company Act of 1940.
(l) Any business
development company as defined in section 202(a)(22) of the
Investment Advisers Act of 1940.
(m) Any other
regulated lender as the state lottery division may determine in its sole
discretion consistent with the provisions of this
chapter.
(n) Such other
similar regulated entities as may be approved by the state lottery division
for good cause.
(28) "Key
gaming employee" means any natural person employed in the operation of a
licensed casino facility in a supervisory managerial
capacity or empowered to make discretionary
decisions, which regulate casino facility operations,
as determined by the state lottery division.
(29) "Key
gaming employee permit" means the permit of a key gaming employee.
(30)
"License" means an authorization issued to a person or entity by or
in the name of
the state lottery division to engage in or assist gaming
operations or activities regulated by this
chapter.
(31)
"Licensee" means any employee, agent, person or entity that is
required to be issued
a license under this chapter or under the rules and
regulations of the state lottery division.
(32)
"Managerial employee" means a person who by virtue of the level of
their
remuneration or otherwise holds a management
supervisory, or policy-making position with any
authorized licensee pursuant to this chapter, vendor,
or the state lottery division.
(33)
"Manufacturer" means any person or entity that manufactures or
assembles
programs or slot machines or other gaming devices for
sale or use in this state.
(34) "Master
contract" means that contract entered into among the Narragansett Indian
Tribe, Harrah's Entertainment, Inc. or an Affiliate
thereof ("Harrah's") and the state lottery
division, which contract would have a term commencing
on the date of execution and expiring
ten (10) years from the date that Harrah's opens the
casino for business.
(35)
"Member" means a member appointed to the state lottery division's
board.
(36)
"Municipality" means any city or town within the state.
(37)
"Non-gaming supplier" means any person or entity that sells, leases,
or otherwise
distributes directly or indirectly, goods or services
other than gaming devices and supplies to the
holder of a license.
(38)
"Permit" means any permit or authorization, or application therefore,
issued
pursuant to the provisions of this chapter.
(39) "Permittee" means any person or entity that is issued
or applying for a permit
pursuant to the provisions of this chapter.
(40)
"Person" means an individual, corporation, limited liability company,
association,
partnership (general or limited), limited liability
partnership, trust, entity, or other legal entity.
(41)
"Security" means the protection of information that would or could
provide an
unfair advantage to any individual involved in the
operation of the casino gaming; protection and
preservation of the integrity of casino gaming games
and operations; as well as measures taken to
prevent crimes against a gaming operator or the state
lottery division.
(42) "Slot
machine" means any mechanical, electrical, or other device, contrivance,
or
machine which, upon insertion of a coin, token, card
or similar object therein or upon payment of
any consideration whatsoever, is available to play or
operate the play or operation of which,
whether by reason of the skill of the operator or
application of the element of change, or both,
may deliver or entitle the person playing or operating
the machine to receive cash, premiums,
merchandise, tokens, or any thing of value, whether
the payoff is made automatically from the
machine or in any other manner.
(43)
"Suitable" "suitability" or "suitability
requirements" means the criteria provided for
in section 41-9.1-22.
(44)
"Vendor" means a person who supplies any goods or services to a
casino licensee.
(45) "Video
Lottery Terminal revenue" means net terminal income derived from video
lottery games and deposited in the general fund and to
the state lottery division for administrative
purposes pursuant to section 42-61.2-7(a)(1).
(46) "Wagerer" means a person who plays a gambling game
authorized under this
chapter.
(47) "Wagering
tax revenue" means the tax revenue to the state derived from the taxes
imposed on the adjusted gross receipts of the casino
licensee in accordance with section 41-9.1-
12(b).
(48)
"Winnings" means the total cash value of all property or sums
including currency,
tokens, or instruments of monetary value paid to wagerers as a direct result of wagers placed at or
through a gambling game.
41-9.1-4. State
lottery division -- Members, employees, agents -- Powers and duties. -
-
(a) In addition to its powers and duties set forth in chapter 61 of title 42,
the state lottery
division shall have the powers and duties specified
within this chapter and all other powers
necessary and proper to fully and effectively execute
and administer the provisions of this chapter
for its purpose of licensing, regulating and enforcing
the system of casino gaming.
(b) By January 31st
of each year, each member of the state lottery division shall prepare
and file with the office of the state lottery
division, a member disclosure form in which the
member does all of the following:
(1) Affirms that the
member or the member's spouse, parent, child, or child's spouse is
not a member of the board of directors, or financially
interested in, or employed by a licensee or
applicant.
(2) Affirms that the
member continues to meet any other criteria for state lottery division
membership under this chapter or the rules promulgated
by the state lottery division.
(3) Discloses any
other information as may be required to ensure that the integrity of the
state lottery division and its work is maintained.
(c) By January 31st
of each year, each employee of the state lottery division shall
prepare and file with the office of the state lottery
division an employee disclosure form in which
the employee does all of the following:
(1) Affirms the
absence of financial interests prohibited by this chapter.
(2) Discloses any
legal or beneficial interests in any real property that is or that may be
directly or indirectly involved with gaming or gaming
operations authorized by this chapter.
(3) Discloses
whether the employee or the employee's spouse, parent, child, or child's
spouse is financially interested in or employed by
licensee or applicant.
(4) Discloses such
other matters as may be required to ensure that the integrity of the
state lottery division and its work is maintained.
(d) A member,
employee, or agent of the state lottery division who becomes aware that
the member, employee or agent of the state lottery division
or his or her spouse, parent, or child is
a member of the board of directors; or financially
interested in, or employed by, a licensee or an
applicant shall immediately provide detailed written
notice thereon to the chairperson.
(e) A member,
employee or agent of the state lottery division who has been indicted,
charged with, convicted of, pled guilty or nolo contendere to or forfeited
bail concerning a
misdemeanor or felony involving gaming, dishonesty,
theft, or fraud in this state or any state or of
the
the chairperson.
(f) Any member,
employee, or agent of the state lottery division who is negotiating for,
or acquires by any means any interest in any person
who is a licensee or an applicant, or any
person affiliated with such a person, shall
immediately provide written notice of the details of the
interest to the chairperson. The member, employee, or
agent of the state lottery division shall not
act on behalf of the state lottery division with
respect to that person.
(g) A member,
employee, or agent of the state lottery division may not enter into any
negotiations for employment with any person or
affiliate of any person who is a licensee or an
applicant, and shall immediately provide written
notice of the details of any such negotiations or
discussions to the chairperson. The member, employee,
or agent of the state lottery division shall
not take any action on behalf of the state lottery
division with respect to that person.
(h) Any member,
employee, or agent of the state lottery division who receives an
invitation, written or oral, to initiate a discussion
concerning employment or the possibility of
employment with a person or affiliate of a person who
is a licensee or an applicant shall
immediately report that he or she received the
invitation to the chairperson. The member,
employee, or agent of the state lottery division shall
not take action on behalf of the state lottery
division with respect to the person.
(i)
A licensee or applicant shall not knowingly initiate a negotiation for or
discussion of
employment with a member, employee, or agent of the
state lottery division. A licensee or
applicant who initiates a negotiation or discussion
about employment shall immediately provide
written notice of the details of the negotiation or
discussion to the chairperson as soon as he or
she becomes aware that the negotiation or discussion
has been initiated with a member,
employee, or agent of the state lottery division.
(j) A member,
employee, or agent of the state lottery division, or former member,
employee, or agent of the state lottery division,
shall not disseminate or otherwise disclose any
material or information in the possession of the state
lottery division that the state lottery division
considers confidential unless specifically authorized
to do so by the chairperson of the state
lottery division.
(k) A member,
employee or agent of the state lottery division shall not engage in any
conduct that constitutes a conflict of interest and
shall immediately advise the chairperson, in
writing, of the details of any incident or
circumstances that would present the existence of a
conflict of interest with respect to the performance
of the state lottery division -related work or
duty of the member, employee, or agent of the state
lottery division.
(l) A member,
employee, or agent of the state lottery division who is approached and
offered a bribe shall immediately provide written
account of the details of the incident to the
chairperson and to a law enforcement officer of a law
enforcement agency having jurisdiction.
(m) A member,
employee, or agent of the state lottery division shall disclose his or her
past involvement with any casino interest in the past
five (5) years.
(n) A member,
employee, or agent of the state lottery division or a parent, spouse,
sibling, spouse of a sibling, child, or spouse of a child
of a member, employee, or agent of the
state lottery division may not accept, other than that
which they may be able to receive as a
legislator in compliance with campaign contribution,
disclosure and other rules, regulations and
general laws in existence, any gift, gratuity,
compensation, travel, lodging, or anything of value,
directly or indirectly, from any licensee or any
applicant or affiliate or representative of an
applicant or licensee. Any member, employee, or agent
of the state lottery division who is offered
or receives any gift, gratuity, compensation, travel,
lodging, or anything of value, directly or
indirectly, from any licensee or any applicant or
affiliate or representative of an applicant or
licensee shall immediately provide written
notification of the details to the chairperson.
(o) A licensee or
applicant, or affiliate or representative of an applicant or licensee, may
not, directly or indirectly, give or offer to give any
gift, gratuity, compensation, travel, lodging, or
anything of value to any member, employee, or agent of
the state lottery division which the
member, employee, or agent of the state lottery
division is prohibited from accepting under
subsection (j).
(p) Except as
follows, no member, employee, or agent of the state lottery division may
participate in or wager on any gambling game conducted
by any licensee or applicant or any
affiliate of an applicant or licensee in
employee, or agent of the state lottery division may
participate in and wager on a gambling game
conducted by a licensee under this chapter, to the
extent authorized by the chairperson or board of
the state lottery division as part of the person's
surveillance, security, or other official duties for
the state lottery division.
(q) A former member,
employee or agent of the state lottery division may appear before
the state lottery division as a fact witness about
matters or actions handled by the member,
employee, or agent during his or her tenure as a
member, employee, or agent of the state lottery
division. The member, employee, or agent of the state
lottery division shall not receive
compensation for such an appearance other than
standard witness fee for reimbursement for travel
expenses as established by statute or court rule.
(r) A new or current
employee or agent of the state lottery division shall obtain written
permission from the executive director before
continuing outside employment held at the time the
employee begins to work for the state lottery
division. Permission shall be denied, or permission
previously granted will be revoked, if the nature of
the work is considered to or does create a
possible conflict of interest or otherwise interferes
with the duties of the employee or agent for
the state lottery division.
(s) An employee or
agent of the state lottery division granted permission for outside
employment shall not conduct any business or perform
any activities, including solicitation,
related to outside employment on premises used by the
state lottery division or during the
employee's working hours for the state lottery
division.
(t) Whenever the
chairperson, as an employee of the state lottery division, is required to
file disclosure forms or report, in writing, the
details of any incident or circumstance pursuant to
this section, he or she shall make such filings or
written reports to the state lottery division.
(u) The chairperson
shall report any action he or she has taken or contemplates taking
under this section with respect to an employee or
agent or former employee or former agent to the
state lottery division at the next meeting of the
state lottery division. The state lottery division
may direct the executive director to take additional
or different action.
(v) Violation of
this section by a licensee or applicant, or affiliate of a licensee or
applicant, may result in denial of the application of licensure
or revocation or suspension of
license or other disciplinary action by the state
lottery division.
(w) Violation of
this section by a member of the state lottery division may result in
disqualification or constitute cause for removal pursuant
to the provisions of this chapter or other
disciplinary action as determined by the state lottery
division.
(x) A violation of
this section by an employee or agent of the state lottery division will
not result in termination of employment if the state
lottery division determines that the conduct
involved does not violate the purpose of this chapter.
However, employment will be terminated as
follows:
(1) If, after being
offered employment or beginning employment with the state lottery
division, the employee or agent intentionally acquires
a financial interest in a licensee or an
applicant, or affiliate of a licensee or applicant,
employment with the state lottery division shall
be terminated.
(2) If a financial
interest in a licensee or an applicant, or affiliate of a licensee or
applicant, is acquired by an employee or agent that
has been offered employment with the state
lottery division, an employee of the state lottery division,
or the employee's or agent's spouse,
parent, or child, through no intentional action of the
employee or agent, the individual shall have
up to thirty (30) days to divest or terminate the
financial interest. Employment may be terminated
if the interest has not been divested after thirty
(30) days.
(3) Employment shall
be terminated if the employee or agent is a spouse, parent, child,
or spouse of a child of a state lottery division
member.
(y) Violation of
this section does not create a civil cause of action.
(z) As used in this
section, "Outside employment" includes, but is not limited to, the
following:
(1) Operation of a
proprietorship.
(2) Participation in
a partnership or group business enterprise.
(3) Performance as a
director or corporate officer of any for-profit corporation or
banking or credit institution.
41-9.1-5. State
lottery division -- Jurisdiction -- Powers. -- (a) In addition
to its
jurisdiction and powers set forth in chapter 61 of title
42, the state lottery division shall also have
such jurisdiction and powers as provided for in this
title. The state lottery division shall have
jurisdiction over and shall supervise all gaming
operations governed by this chapter. The state
lottery division shall have all powers necessary and
proper to fully and effectively execute this
chapter; including, but not limited to, the authority
to do all of the following:
(1) Investigate
applicants and determine the eligibility of applicants for licenses or
registration and to grant licenses to applicants in
accordance with this chapter and the rules
promulgated under this chapter.
(2) Have
jurisdiction over and supervise casino gaming authorized by this chapter and
all
persons in casinos where gaming is conducted under
this chapter.
(3) Enter, to the
extent permissible under the Constitutions of the State of
and of the
at any time without a warrant and without notice to
the licensee, the premises, offices, casinos,
facilities or other places of business of a casino
licensee or gaming supplier permittee where
evidence of the compliance or noncompliance with this chapter
or the rules promulgated by the
state lottery division is likely to be found, for the
following purposes:
(i)
To inspect and examine all premises wherein casino gaming or the business of
gaming or the business of a gaming supplier is conducted,
or where any records of the activities
are prepared.
(ii) To inspect,
examine, audit, impound, seize or assume physical control of, or
summarily remove from the premises all books, ledgers,
documents, writings, photocopies,
correspondence, records, videotapes, including
electronically stored records, money receptacles,
other containers and their contents, equipment in
which the records are stored, or other gaming
related equipment and supplies on or around the
premises including counting rooms.
(iii) To inspect the
person, and inspect, examine and seize personal effects present in a
casino facility licensed under this chapter, of any
holder of a license or registration issued
pursuant to this chapter while that person is present
in a licensed casino facility.
(iv) To investigate
and deter alleged violations of this chapter or the rules promulgated
by the state lottery division.
(4) Investigate
alleged violations of this chapter or rules promulgated by the state lottery
division and to take appropriate disciplinary action
against a licensee, permittee or any other
person or holder of an occupational license or permit
for a violation, or institute appropriate legal
action for enforcement, or both.
(5) Adopt standards
for the licensing or permitting of all persons pursuant to this chapter,
as well as for electronic or mechanical gambling
games, and to establish fees for such licenses
and permits.
(6) Adopt
appropriate standards for all casino gaming facilities and equipment.
(7) Require that all
records of casino licensees and gaming supplier permittees,
including
financial or other statements, be kept on the premises
of the casino licensee or gaming supplier
permittee in the manner prescribed by the state lottery
division.
(8) Require that the
casino licensee submit to the state lottery division an annual balance
sheet, profit and loss statement, and any other
information the state lottery division considers
necessary in order to effectively administer this
chapter, all rules promulgated by the state lottery
division, and orders and final decisions made under
this chapter.
(9) Prescribe a form
to be used by any licensee involved in the ownership or
management of gambling operations as an application
for employment for prospective
employees.
(10) Revoke or
suspend licenses or permits, impose fines and penalties as the state
lottery division considers necessary and in compliance
with this chapter and applicable laws of
the state regarding administrative procedure, and
review and decide the renewal of licenses.
(11) In addition to
a disassociated person, eject or exclude or authorize the ejection or
exclusion of a person from a casino if the person
violates the provisions of this chapter, rules
promulgated by the state lottery division or final
orders of the state lottery division or when the
state lottery division determines that the person's
conduct or reputation is such that his or her
presence within the casino gaming facilities may
compromise the honesty and integrity of the
gambling operations or interfere with the orderly
conduct of the gaming operations. However, the
propriety of the election or exclusion is subject to a
subsequent hearing by the state lottery
division.
(12) Suspend, revoke
or restrict licenses and permits, and require the removal of a
licensee or permittee or an
employee of a licensee or permittee, for a violation
of this chapter or a
rule promulgated by the state lottery division or for
engaging in a fraudulent practice, and impose
civil penalties pursuant to the provisions of this
chapter.
(13) Disqualify a
person in accordance with the applicable provisions of this chapter.
(14) In addition to
the authority provided under subsection (a)(12), revoke or suspend a
casino license or impose any other disciplinary action
for any of the following reasons:
(i)
The casino licensee has violated the provisions of chapter 2 of title 3 or
rules
promulgated pursuant to this chapter.
(ii) At any time the
licensee no longer meets the eligibility requirements or suitability
determination by the state lottery division for a
casino license under this chapter.
(iii) The failure to
revoke or suspend the license would undermine the public's
confidence in the
(15) Conduct
periodic compliance or special or focused audits of casinos authorized
under this chapter. Said audits may be conducted by state
agency personnel or private sector audit
firms and shall be in addition to annual financial
audits conducted by certified public accountant
firms.
(16) Establish
minimum levels of insurance to be maintained by licensees.
(17) Perform a background
check, at the vendor's expense, of any vendor using the same
standards that the state lottery division uses in
determining whether to grant a gaming or non-
gaming supplier's permit.
(18) Review the
business practices of a casino licensee including, but not limited to, the
price and quality of goods and services offered to
patrons, and take disciplinary action as the state
lottery division considers appropriate to prevent
practices that undermine the public's confidence
in the
(19) Review a holder
of a license, permit or registration if that holder is under review or
is otherwise subject to discipline by a regulatory
body in any other jurisdiction for a violation of a
gaming law or regulation in that jurisdiction.
(20) Take any other
action as may be reasonable or appropriate to enforce this chapter
and rules promulgated by the state lottery division.
(b) The state
lottery division may seek and shall receive the cooperation and assistance
of the department of state police and department of
attorney general in conducting background
investigations of applicants and in fulfilling its
responsibilities under this chapter.
(c) The state
lottery division shall establish, issue and promulgate rules and regulations
pertaining to any or all matters within the state
lottery division's jurisdiction, in accordance with
the provisions of the state administrative procedures
act, chapter 35 of title 42, including, but not
limited to:
(1) The issuance of
any license, registration, or permit authorized by this chapter or other
law providing for gaming operations and activities
subject to regulation of the state lottery
division.
(2) The methods and
procedures for making an application for a license, registration, or
permit to be considered by the state lottery division.
(3) The methods for
providing to the state lottery division information concerning a
person's family, habits, character, associates, criminal
record, business activities, and financial
affairs.
(4) Enforcement of
this chapter, gaming laws administered by the state lottery division,
and rules of the state lottery division including
imposition and collection of fines, penalties, and
other sanctions which may be imposed by the state
lottery division against a casino operator or
any other licensee or permittee
of the state lottery division.
(5) The operation
and management of the facility, the hiring of employees thereof, the
establishment of prevention, education and other
services related to pathological gambling, the
conduct of gaming, electronic funds transfer
terminals, audits, annual reports, prohibited conduct,
and such other matters as the state lottery division
shall determine.
(d) The state
lottery division may conduct hearings or may designate a hearing officer or
hearing panel to conduct hearings and in connection
therewith may:
(1) Issue subpoenas
and compel the attendance of witnesses or the production of
documents.
(2) Administer oath.
(3) Require
testimony under oath before the hearing officer or hearing panel in the
course of a hearing being held for any reason.
(4) Issue written
interrogatories.
(e) Notwithstanding any
other provisions of the general laws or regulations adopted
thereunder to the contrary, including, but not limited to, the
provisions of chapter 2 of title 37,
and chapter 61 of title 42, the state lottery division
is hereby authorized, empowered and directed
to enter into a Master Contract with the Narragansett
Indian Tribe and Harrah's Entertainment,
Inc. or an Affiliate thereof ("Harrah's")
which contract will have a term commencing on the date
of execution and expiring ten (10) years from the date
that the casino opens for business, and to
fix in the Master Contract for the duration of such
term the following: the casino license fee; the
rate of taxation on the adjusted gross receipts from
gaming authorized under this chapter; the two
(2) year tax revenue insurance policy; the hotel
occupancy tax which shall be in lieu of all other
parking, admission and other related patron taxes and
fees; the project investment requirement of
the casino licensee; the annual funding covenant of the
casino licensee in favor of the Rhode
Island Council on Problem Gambling; and the annual
funding covenant of the casino licensee in
connection with a joint marketing budget in favor of
the Rhode Island Hospitality and Tourism
Association and
described in section 41-9.1-12. Insofar as the
provisions of this act are inconsistent with the
provisions of any other general or special law, the
provisions of this act shall be controlling. The
state does hereby pledge and agree under this act that
the state will not limit, alter, diminish, or
adversely impact the rights or economic benefits which
vest in the casino licensee under the terms
of the Master Contract authorized hereby, unless
authorized by this act, and the state lottery
division is hereby authorized, empowered and directed
to memorialize this pledge and agreement
on behalf of the state in the Master Contract.
(f) After the
expiration of the ten (10) year period of the Master Contract described
above, the parties thereto shall renegotiate the
wagering tax rates set forth in section 41-9.1-12(b)
and the casino license renewal fee set forth in
section 41-9.1-11.
41-9.1-6.
Division of state police -- Jurisdiction -- Powers. -- The
division of state
police shall:
(a) Conduct
investigations and audits regarding the qualifications of applicants for
licenses, permits or registrations requiring
suitability determinations as required by law or rule or
determined necessary by the state lottery division.
(b) Submit all
investigative reports to the state lottery division by and through the
executive director for analysis, review, and action
pursuant to the provisions of this chapter.
(c) Conduct audits
to assist the state lottery division in determining compliance with all
gaming laws, rules and regulations on gaming
activities and operations under the state lottery
division's jurisdiction.
(d) Perform all
other duties and functions necessary for the efficient, efficacious, and
thorough regulation and control of gaming activities
and operations under the state lottery
division's jurisdiction.
41-9.1-7.
Appropriation -- Reimbursement. -- Operations of the state
lottery division
during fiscal years shall be funded by the fees paid
by licensees and suppliers pursuant to the
provisions of this chapter, including without
limitation section 41-9.1-11.
41-9.1-8.
Casino gaming authorized. -- (a) Notwithstanding any other
section of Rhode
Island General Laws, gaming is authorized at a single
casino in the state of
extent that it is conducted in accordance with this
chapter.
(b) This chapter
does not apply to any of the following:
(1) The pari-mutuel
system of wagering used or intended to be used in connection with
race meetings as authorized under chapters 3.1 and 4
of this title.
(2) Lottery games
authorized under chapters 61 and 61.2 of title 42; including, without
limitation, video lottery terminals located at Newport
Grand and
(3) Bingo.
(4) The pari-mutuel
system of wagering used or intended to be used in connection with
jai alai as authorized under chapter 7 of this title.
(5) The pari-mutuel
system of wagering used or intended to be used in connection with
Simulcast programs from licensed betting facilities as
authorized under chapter 11 of this title.
41-9.1-9. State
and local referendum election. -- (a) Pursuant to the terms of
R.I.
Const., Art. VI, section 22 and chapter 5 of title 17,
the general assembly hereby authorizes
submission to all of the electors of the state, at the
general election to take place on November 2,
2004, the following question: "Shall there be a
casino in the Town of
an Affiliate of Harrah's Entertainment in association
with the Narragansett Indian Tribe?"
(b) Prior to the
general election question being submitted to the electors of the state and
prior to any casino being established in the Town of
be eligible as the host community for such casino, the
casino license applicant shall, within
seventy-five (75) days of the passage of this act,
file a statement of intent with the state lottery
division that demonstrates the following:
(1) Evidence that
the West Warwick Town Council has agreed to pose, by adopting
subsequent to July 1, 2004, a resolution to be placed
on the ballot at the next general election to
be submitted to the qualified electors of the Town of
of the state, the question referenced in subsection
(a) of this section;
(2) Adequate
description of real estate designated and available for the development of
the casino, which real estate shall constitute at
least thirty (30) acres;
(3) Evidence of a
fully executed development agreement; and
(4) A complete
proposal as referred to in section 41-9.1-10.
(c) In the event of
certification by the state lottery division of the statement of intent, the
question referenced in subsection (a) shall then be
submitted by the secretary of state to the
qualified electors of the state at a general election
to take place on November 2, 2004. The
secretary of state shall certify the election results.
The question shall also be submitted at the
same general election by the local board of canvassers
to the qualified electors of the Town of
West Warwick, and the local board of canvassers shall certify the
election results to the secretary
of state. Notwithstanding any provisions of this
section, in the event that certification by the state
lottery division of the statement of intent does not
occur, then any vote by the qualified electors of
the state and the Town of
deemed non-binding.
(d) In the event of
the affirmative vote of the qualified electors of the Town of
Warwick and the qualified electors of the state, the state
lottery division shall, in accordance with
the provisions of this section and section 41-9.1-11,
award the casino license to the applicant that
is a party with the Town of
2005.
(e) In the event
that the affirmative vote of both the Town of
electors of the state does not occur, or in the event
that the casino license applicant is not able to
timely file a statement of intent with the state
lottery division in accordance with the provisions of
subsection (b), then this chapter shall cease to have
effect, and shall become null and void.
(f) Notwithstanding
any provision of the General Laws to the contrary, with respect to
the matters contemplated in this chapter, the
application and license issuance process described in
this chapter shall govern and control and shall be in
lieu of any other public bidding, request for
proposal rights or requirements contained in the General
Laws. Any decision or act by the general
assembly, the secretary of state or the state lottery
division in: (i) phrasing or submitting the
statewide question, (ii) determining whether a
statement of intent is in compliance with the filing
and other provisions of this chapter, or (iii)
awarding the single casino license, shall be final and
binding and shall not be reviewable in any court on
any grounds except corruption or fraud, so as
to promote and not hinder the economic development
initiatives and matters contemplated in this
chapter. Jurisdiction of any suit, action or
proceeding with respect to any of the foregoing shall
immediately and exclusively vest in the Superior
Court, and any appeal to the
Supreme Court shall be heard on an expedited basis;
provided, however, that no such suit, action
or proceeding shall serve to enjoin (i) the question referenced in subsection (a) from being
submitted by the Secretary of State to the qualified
electors of the state at a general election to
take place on November 2, 2004, and submitted at the
same general election by the local board of
canvassers to the qualified electors of the Town of
of the single casino license, or (iii) any recipient
of a casino license from proceeding with
development or operational matters, until a final,
non-appealable decision has been rendered by a
court.
41-9.1-10.
Content of proposal. -- The proposal filed with the state
lottery division shall
be made under oath, and shall include without
limitation all of the following:
(a) The name and
business address of the applicant, and the names and business
addresses of the board of directors and the key
officers thereof. In the event that a person or entity
directly owns or controls a five percent (5%) or
greater voting interest in the applicant, then the
applicant shall also disclose the names and business
addresses of such person or entity and the
officers and directors thereof unless such entity is
an institutional investor in which case the name
and address of the institutional investor need only be
disclosed. The applicant shall also disclose
whether it has knowledge that any disclosed person or
entity has been convicted of any felony
crime.
(b) A fully executed
development agreement between the applicant and the Town of
West Warwick.
(c) A description of
the proposed gaming operation and related amenities, including the
economic benefits to the host community and the state (i.e.,
the proposed amount of investment in
construction and development; square footage of the
casino; the number and types of games; the
presence of hotels, restaurants and other non-gaming
amenities; parking spaces; etc.).
(d) A description of
the physical location of the proposed gaming operation and related
amenities, and evidence that applicant has the real
estate site control (i.e., real estate purchase and
sale agreements or option agreements) necessary to
support such development.
(e) A description of
the anticipated or actual number of employees, and related wages
and benefits.
(f) A description of
the marketing and operating experience of the applicant, and a
description of how such experience and other assets of
the applicant would enable it and the state
to secure and maintain a strategic and competitive
position within
industry.
(g) A statement
regarding compliance with federal and state affirmative action
guidelines.
41-9.1-11. Issuance
of single casino license. -- (a) The casino license issued shall
remain
in effect so long as the licensee complies with the
provisions below. The initial issuance of the
casino license shall be valid for a period of five (5)
years and shall be renewable for periods of
five (5) years, each upon the payment of a fee in the
amount of five hundred thousand ($500,000)
dollars and determination by the state lottery
division that the casino licensee is in compliance
with the suitability requirements of section
41-9.1-22. The fee shall be paid to the state.
(b) Any casino
license issued pursuant to this chapter shall be subject to the continuing
duty of the licensee to maintain the suitability
requirements of section 41-9.1-22 and all
requirements of the state lottery division.
41-9.1-12.
Wagering and other related taxes and fees. -- Subject to the
provisions of
section 41-9.1-5(e), the wagering and other related
taxes and fees set forth below in this section
shall be paid by the casino licensee, shall be fixed
and memorialized in the Master Contract, and
shall constitute the total remuneration owed from the
casino licensee to the state during the term
of the Master Contract other than as provided for in this
act as of the date of its passage [July 30,
2004]and other than general business and corporate
taxes that all businesses of this state are
subject to under the laws of this state.
(a) Casino License
Fee. - Subject to the terms and conditions of the Master Contract, a
casino license fee in the amount of one hundred
million dollars ($100,000,000) shall be payable
by the casino licensee to the state in three
installments of thirty-three million three hundred thirty-
three thousand three hundred thirty-three dollars and
thirty-three cents ($33,333,333.33) each on
the following dates: (i) the
date of issuance of the casino license; (ii) the one-year anniversary
date of the issuance of the casino license; and (iii)
the two-year anniversary date of the issuance
of the casino license.
(b) Wagering Tax. -
The annual rate of taxation on the adjusted gross receipts ("AGR")
received by the casino licensee from gaming authorized
under this chapter shall be as follows for
the period of time commencing on the first (1st) day
on which the casino opens for business (the
"Commencement Date") and expiring at the end
of five (5) years from the Commencement Date
(the "Expiration Date").
AGR up to an
including $400 million 25.00%
AGR greater than
$400 million and up to and including $500 million 27.00%
AGR greater than
$500 million and up to and including $600 million 29.00%
AGR greater than
$600 million and up to and including $750 million 31.00%
AGR greater than
$750 million and up to and including $900 million 33.00%
AGR greater than
$900 million and up to and including $1 billion 35.00%
AGR greater than $1
billion 40.00%
The annual rate of
taxation on AGR received by the casino licensee from gaming
authorized under this chapter shall be as follows
subsequent to the Expiration Date and going
forward:
AGR up to and
including $400 million 25.00%
AGR greater than
$400 million and up to and including $500 million 28.00%
AGR greater than
$500 million and up to and including $600 million 30.00%
AGR greater than
$600 million and up to and including $750 million 32.00%
AGR greater than
$750 million and up to and including $900 million 35.00%
AGR greater than
$900 million 40.00%
(c) Tax Revenue
Insurance Policy. - For purposes of this subsection (c), the term
"Effective Period" shall mean that period of
time commencing on the first (1st) day on which the
casino opens for business and expiring two (2) years
from such date, and the term "Base Year"
shall mean the one-year period immediately preceding
the date on which the casino opens for
business. Subject to the terms and conditions of the
Master Contract, the casino licensee shall
covenant therein that in the event that the aggregate
amount of video lottery terminal revenue and
wagering tax revenue, minus any amounts refunded to
GTECH Corporation under the Master
Contract between GTECH Corporation and the Commission
effective July 1, 2003 and due to
passage of this act, received by the state each year
during the Effective Period is not at least equal
to that amount which is one hundred ten percent (110%)
of the video lottery terminal revenue
received by the state during the Base Year, then the
casino licensee shall reimburse to the state
dollar for dollar the amount of such shortfall.
(d) Hotel Occupancy
Tax. - With respect to each hotel room that is occupied by a guest,
the casino licensee shall pay to the state, in
addition to other state and local hotel taxes that apply
to all hotels in the state, a one dollar ($1.00) hotel
occupancy tax, which tax shall be in lieu of all
other parking, admission, complimentary and other
related patron taxes and fees.
(e) Project
Investment Requirement. - The casino licensee shall demonstrate to the
satisfaction of the state lottery division prior to
the opening of the casino for business that it has
invested in the aggregate at least five hundred
million dollars ($500,000,000) of hard and soft
costs in connection with acquiring interests in land,
making improvements to real property and
otherwise developing and constructing the casino and
related facilities.
(f) Funding Covenant
of Casino Licensee in favor of the Rhode Island Hospitality and
Tourism Association and the
thousand dollars ($50,000) per year to each entity
throughout the term of the casino license shall
be provided by casino licensee for the marketing of
state convention and tourism business.
(g) Funding Covenant
of Casino Licensee in favor of the Rhode Island Council on
Problem Gambling. - One hundred fifty thousand dollars
($150,000) per year throughout the term
of the casino license shall be provided by casino licensee
to the Rhode Island Council on Problem
Gambling or such other department, agency or entity
that the legislature shall designate.
41-9.1-13.
State lottery division and other approvals necessary for construction of
casino. -- (a) No casino licensed under this chapter shall open
for operation until the state lottery
division and all appropriate state agencies have
received and approved certification from the
Town of
of this chapter, any regulations promulgated thereunder, and applicable state and local law, as
well as with all provisions of the development
agreement.
(b) So long as the
Town of
comprehensive plan to include a casino development,
authority is hereby granted to the casino
licensee to proceed with the construction of the
casino development approved by the voters in the
state and local referendum election pursuant to
section 41-9.1-9; subject to the receipt of any and
all municipal approvals.
41-9.1-14.
Promulgation of operational rules and regulations. -- Upon the
licensing of
a casino under the provisions of this chapter, the
state lottery division shall have authority to issue
such regulations as it deems appropriate pertaining to
the operation and management of the
facility, the hiring of employees thereof, the
establishment of compulsive gambling treatment
programs, the conduct of gaming, electronic funds transfer
terminals, audits, annual reports,
prohibited conduct and such other matters as the state
lottery division shall determine.
41-9.1-15.
Gaming and non-gaming supplier permits and gaming employee permits
required -- Terms. -- (a) The securing of a permit under the provisions of
this chapter shall be a
prerequisite for performing any activity which
requires a permit pursuant to this chapter.
(b) The permits
provided for in this chapter shall not be transferable.
(c) Any permit applied
for, granted, or issued under the provisions of this chapter is an
absolute revocable privilege, the awarding, denial or
withdrawal of which is solely within the
discretion of the state lottery division where applicable
except as provided in this chapter. Any
permit used or renewed under the provisions of this
chapter is not a property right or a protected
interest under the constitutions of either the
(d) A licensee shall
not employ any person in a capacity for which he is required to be
issued a permit, unless he possesses a valid permit.
(e) Every person
desiring to obtain a gaming supplier permit, a key gaming employee
permit or a non-gaming supplier permit shall make
application to the state lottery division where
applicable on a form and in a manner prescribed by the
state lottery division. The application
forms shall be provided by the state lottery division
and shall contain such information pursuant
to the provisions of this chapter and the state
lottery division. No application shall be accepted
unless the state lottery division determines that all
relevant requirements of this chapter have been
met. Notwithstanding anything to the contrary
contained in this chapter, the state lottery division
in its sole discretion may issue such permits on a
temporary basis prior to all relevant
requirements of this chapter having been met, to such
applicants under the circumstances and on
terms that it deems appropriate.
(f) The term of a
permit shall be for five (5) years; however, the state lottery division
may issue temporary permits.
(g) The state
lottery division shall establish by rule a procedure for issuing and renewing
permits that are issued so that a similar number of
permits will come up for renewal in each
subsequent year. The rule may provide for a one-time
renewal period of less than a five (5)-year
duration. Appropriate fees shall also be established.
41-9.1-16. Gaming
supplier permits. -- (a) The state lottery division shall issue
a
gaming supplier permit to suitable persons who supply,
sell, lease or repair, or contract to supply,
sell lease or repair gaming devices, equipment, and
supplies to the holder of a license. A person
shall not supply, sell, lease, or repair, or contract
to supply, sell, lease or repair, gaming devices,
equipment and supplies unless then possess a valid
gaming supplier permit.
(b) Gaming devices
or supplies may not be distributed to the holder of a license unless
such devices or supplies conform to rules adopted by
the state lottery division.
(c) A gaming
supplier shall furnish to the state lottery division a list of any gaming
devices and supplies offered by the gaming supplier
for sale or lease in connection with games
authorized under this chapter. A gaming supplier shall
keep books and records for the furnishing
of gaming devices and supplies to gaming operations
separate and distinct from any other
business that the gaming supplier might operate. A
gaming supplier shall file an annual return
with the state lottery division listing all sales and
leases. A gaming supplier shall permanently
affix its name to all its gaming devices and supplies
for gaming operations unless otherwise
authorized by the state lottery division. Any gaming
supplier's gaming devices or supplies, which
are used by any person in unauthorized gaming
operations, shall be forfeited to the state lottery
division. The holder of a license may own its own
gaming devices and supplies. Each gaming
supplier and the holder of a license shall file an
annual report with the state lottery division listing
its inventories of gaming devices, equipment, and supplies.
(d) The initial fee
for a gaming supplier permit issued under the provisions of this section
is three thousand dollars ($3,000), and the renewal
fee shall be one thousand dollars ($1,000).
This fee is required to be submitted at the time of
application and on the anniversary date of the
issuance of the permit thereafter. The state lottery
division may assess the gaming supplier any
costs incurred in testing and approving any devices or
supplies.
(e) Except as is
otherwise required under section 41-9.1-17, non-gaming suppliers shall
not be required to obtain a permit from the state
lottery division; provided, however, the state
lottery division may call forward any such non-gaming
supplier and require a finding of
suitability if necessary to protect the public
interest.
41-9.1-17.
Non-gaming supplier permits. -- (a) The state lottery division
shall issue a
non-gaming supplier permit to suitable persons who
supply, sell, lease or repair, or contract to
supply, sell, lease or repair, non-gaming devices and
supplies, in amounts that in the aggregate
exceed two hundred thousand dollars ($200,000) per
calendar year, to the holder of a license. A
person shall not be entitled to compensation for the
supply, sale, lease or repair of, or a contract to
supply, sell, lease, or repair, non-gaming devices and
supplies in amounts that in the aggregate
exceed two hundred thousand dollars ($200,000) per
calendar year, unless they possess a valid
non-gaming supplier permit.
(b) The initial fee
for a non-gaming supplier permit issued under the provisions of this
section is one hundred dollars ($100) and the renewal
fee shall be one hundred dollars ($100).
This fee is required to be submitted at the time of
application and on the anniversary date of the
issuance of the permit thereafter. The state lottery
division may assess the non-gaming supplier
any costs incurred in testing and approving any
devices or supplies.
41-9.1-18. Key
gaming employee and key gaming employee permit. -- (a) The state
lottery division shall issue a key gaming employee
permit to suitable persons pursuant to this
chapter. No key gaming employee required by this
chapter to be permitted may commence
employment or be employed as a key gaming employee
unless that person is the holder of a valid
key gaming employee permit; provided, however, the
state lottery division may issue temporary
permits.
(b) The state
lottery division shall issue a key gaming employee permit to suitable
persons pursuant to this chapter.
(c) The holder of a
key gaming employee permit or temporary permit issued under this
chapter shall be authorized to work in the capacity
for which permitted for the holder of a license.
(d) The fee for the
initial application for a key gaming employee permit issued under the
provisions of this section is two hundred dollars
($200). This fee is required to be submitted at the
time of application. The renewal fee for the key
gaming employee permit is one hundred dollars
($100).
41-9.1-19.
License, permit and registration as revocable privilege -- Rights,
limitations and prohibitions -- Revocation and
suspension -- Penalties for violation. -- (a) A
license, permit or registration issued under this
chapter is a revocable privilege granted by the
state dependent upon the holder's compliance with this
chapter and rules promulgated hereunder
and is not a property right. Granting a license,
permit or registration under this chapter does not
create or vest any right, title, franchise or other
property interest. Any casino license or gaming
supplier permit is exclusive to the holder, and a
holder or any other person shall apply for and
receive the state lottery division's approval before a
casino license or gaming supplier permit is
transferred, sold or purchased, or before a voting
trust agreement or other similar agreement is
established with respect to such. A holder of a casino
license or gaming supplier permit, or any
other person, shall not lease, pledge, or borrow, or
loan money against such license or permit. The
attempted transfer, sale or other conveyance of an
interest in a casino license or gaming supplier
permit without prior state lottery division approval
is grounds for suspension or revocation of the
license or permit, or other sanctions considered
appropriate by the state lottery division. In the
event of any transfer, sale or other conveyance of a
casino license or gaming supplier permit,
including those ordered by a court of competent
jurisdiction in connection with a bankruptcy,
receivership or other like proceeding, the state
lottery division shall have the right to approve any
proposed transferee pursuant to the requirements of
this chapter. Any costs associated with a
transfer, sale or other conveyance of a casino license
or gaming supplier permit shall be borne by
the transferee.
(b) The state
lottery division may upon its own motion, and shall upon the verified
complaint, in writing, of any person initiating a
cause under this chapter, ascertain the facts and, if
warranted, hold a hearing for the nonrenewal,
suspension or revocation of a license, permit or
registration. The state lottery division shall have
the power to suspend or revoke a license, permit
or registration or place a holder on probation where
the license permit or registration has been
obtained by false representation or by fraudulent act
or conduct or where a holder violates any of
the provisions of this chapter.
(c) In addition to
the nonrenewal, revocation or suspension of a license, permit or
registration, the state lottery division is authorized
to levy an administrative penalty not exceeding
the greater of:
(1) Five hundred
thousand dollars ($500,000); or
(2) Two hundred
percent (200%) of the amount unreported or underreported for any
violation of the reporting requirements of this
chapter and/or the rules and regulations
promulgated by the state lottery division. For
violations of the chapter and/or the rules
promulgated by the state lottery division other than
reporting requirements, the state lottery
division may levy administrative penalties of up to
five thousand dollars ($5,000) against
individuals and up to ten thousand dollars ($10,000) or
an amount equal to the daily gross
receipts on the date of the violation, whichever is
greater, against casino licensees for each such
violation.
(d) (1) Except as
provided in subsection (e), before refusing to renew, suspending or
revoking a license, permit or registration on its own
motion, the state lottery division shall, in
writing, notify the holder of its intended action and
the grounds for the action. The holder may,
within twenty (20) days, file with the state lottery
division, in triplicate, a request for a hearing
stating his or her answer to the grounds specified in
the notification. The state lottery division
shall consider the answer and set a date for a
hearing, notifying the holder of the date at least
twenty (20) days prior to the hearing date.
(2) Before refusing
to renew, suspending or revoking an existing license, permit or
registration upon the verified written complaint of
any person stating a violation of this chapter,
the state lottery division shall, in writing, notify
the holder of its receipt of the complaint,
enclosing a copy of the complaint. The holder shall,
within twenty (20) days, file with the state
lottery division, in quadruplicate his or her answer
to the complainant or complainants.
(3) The state
lottery division shall transmit a copy of the answer to the complainant or
complainants with the scheduled date, time and place
for hearing at least twenty (20) days prior to
the hearing date.
(4) All notices and answers
required or authorized to be made or filed under this section
may be served or filed personally, or by certified
mail to the last known business address of the
addressee. If served personally, the time runs from
the date of service; if by registered mail, from
the postmarked date of the letter enclosing the
document.
(5) Hearings are
subject to chapter 46 of title 42, entitled "open meetings", and the
holder has an opportunity to be heard in person or by
counsel. The state lottery division shall
render a decision on any application or complaint
within sixty (60) days after the final hearing on
the matter and shall immediately notify the parties to
the proceedings, in writing, of its ruling,
order or decision. In the event the matter contained
in the complaint has been filed or made part
of a case pending in any court of this state, the
state lottery division may then withhold its
decision until the court action has been concluded.
Hearings are held in accordance with rules
promulgated by the state lottery division in
conformity with state and federal law.
(e) The state
lottery division may suspend a license, permit or registration, without notice
or hearing, upon a determination that the safety or
health of patrons or employees is jeopardized.
If the state lottery division suspends a license,
permit or registration under this subsection without
notice or hearing, a prompt post-suspension hearing
shall be held in accordance with subsection
(d) to determine if the suspension should remain in
effect. The suspension may remain in effect
until the state lottery division determines that the
cause for suspension has been abated. The state
lottery division may revoke the license, permit or
registration upon a determination that the
holder has not made satisfactory progress toward
abating the hazard.
(f) (1) The state
lottery division is authorized and empowered to issue subpoenas for the
attendance of witnesses and the production of records
or documents. The process issued by the
state lottery division may extend to all parts of the
state, and the process may be served by any
person designated by the state lottery division. The
person serving that process shall receive any
compensation that is allowed by the state lottery
division, not to exceed the fee prescribed by law
for similar services. All witnesses subpoenaed who
appear in any proceedings before the state
lottery division shall receive the same fees and
mileage allowances allowed by law, and all those
fees and allowances are taxed as part of the costs of
the proceedings.
(2) Where, in any
proceeding before the state lottery division, any witness fails or
refuses to attend upon subpoena issued by the state
lottery division, or refuses to testify, or
refuses to produce any records or documents the
production of which is called for by the
subpoena, the attendance of the witness and the giving
of his or her testimony and the production
of the documents and records shall be enforced by any
court of competent jurisdiction of this state
in the same manner as are enforced the attendance,
testimony of witnesses and production of
records in civil cases in the courts of this state.
(g) The procedures
of the administrative procedures act, chapter 35 of title 42, and all
amendments and modifications to that act and the rules
adopted pursuant to the act, apply to and
govern all proceedings for the judicial review of
final administrative decisions of the state lottery
division. Any party aggrieved by a final
administrative decision of the state lottery division may
seek review of that decision in the superior court of
the county of his or her residence if a natural
person, or the county in which the aggrieved party maintains
a place of business, if other than a
natural person.
(h) Any person
aggrieved has the right of appeal from any adverse ruling, order or
decision of the state lottery division to a court of
competent jurisdiction in the county where the
hearing was held within thirty (30) days from the
service of notice of the action of the state lottery
division upon the parties to the hearing.
(i)
Notice of appeal is filed in the office of the clerk of the court, which shall
issue a writ
of certiorari directed to the state lottery division,
commanding it, within fifteen (15) days after
service of the writ, to certify to the court its
entire record in the matter in which the appeal has
been taken. The appeal shall be heard in due course, by
the court, which shall review the record
and, after a hearing on the matter, make its
determination of the cause.
(j) A final
administrative decision of the state lottery division shall not become
effective
until time for appeal has expired. If an appeal is
taken, it shall not act as a stay of decision unless
the court so directs.
(k) In the event of
a suspension or revocation of a license, permit or registration, the state
lottery division may take such action as is necessary
to continue the daily operation of the casino
until the reinstatement of the license, permit or
registration in the case of a suspension, or the
approval of a replacement license, permit or
registration in accordance with the approval process
contained in this chapter in the case of a revocation.
41-9.1-20.
Records of state lottery division deemed open -- Exceptions. --
(a) Except
as otherwise provided in this chapter or other
chapters, records of the state lottery division shall
be public records. A record of the state lottery
division shall be confidential when the record:
(1) Relates to the
background of an applicant and was provided by the applicant or a
confidential source or informant.
(2) Relates to
security measures of the state lottery division, an applicant, or a licensee or
permittee.
(3) Consists of an
applicant's personal history form or questionnaires, disclosure forms,
or financial statements and records.
(4) Relates to surveillance
and security techniques, procedures, or practices of the state
lottery division, an applicant, or a licensee or permittee.
(5) Relates to trade
secrets or design of experimental gaming devices and equipment.
(6) Consists of
proprietary architectural, construction, schematic or engineering plans,
blueprints, specifications, computer programs or
software, or economic or financial calculations
which relate to authorized gaming activities on the
premises where authorized gaming activities
are conducted or to be conducted.
(7) Relates to an
ongoing investigation of the state lottery division into a possible
violation by a licensee or permittee,
until the state lottery division initiates proposed enforcement
action against the licensee or the permittee
and makes the record public in the course thereof.
(8) Results from or
is part of a state lottery division background investigation of an
applicant.
(9) Relates to
specific financial data concerning casino operations and results; provided,
however, the monthly gross gaming revenue amount shall
be publicly disclosed.
(b) Confidential
information or data which is obtained by the state lottery division may
not be revealed in whole or in part except in the
course of the proper administration of this
chapter. However, the state lottery division or its
authorized agents may reveal such information
or data to an authorized agent of any agency of the
this state or of any political subdivision of this
state, pursuant to rules and regulations adopted by
the state lottery division, or pursuant to a lawful
order of a court of competent jurisdiction. Notice
of the content of any information or data furnished or
released pursuant to this section may be
given to the applicant or licensee to whom it pertains
in a manner prescribed by rules adopted by
the state lottery division.
(c) No state lottery
division member, employee, agent, or authorized representative shall
disclose, divulge, disseminate, or otherwise transmit
or communicate any confidential state
lottery division record, reports, or any confidential
information therein, except as permitted in this
section and then only with the approval of the state lottery
division. Disclosure of any
confidential state lottery division record, report, or
any information therein other than as provided
in this section shall be grounds for removal of a
state lottery division member or termination of
any employee.
(d) All files,
records, reports, and other information pertaining to gaming matters in the
possession of the division of state police or any
other state or municipal law enforcement
authority, and otherwise not specifically provided for
in this chapter shall be made available to
the state lottery division as necessary for the
regulation of gaming activities and operations as
provided by law.
(e) The state
lottery division shall maintain a file of all applications for licenses,
permits
or registrations, and requests for all other state
lottery division actions or approvals received by
the state lottery division, together with a record of
all action taken with respect to those
applications and requests. The file and record shall
be open to public inspection.
(f) The state
lottery division shall maintain a file of all bids or proposals for any
contract
let or entered into by the state lottery division
together with a record of all action taken with
respect to those bids. The file and record shall be
open to public inspection.
41-9.1-21.
Restricted use agreements -- confidentiality of records. -- (a)
The state
lottery division may enter into intelligence sharing,
reciprocal use, or restricted use agreements
with a department or agency of the federal government,
law enforcement agencies, and gaming
enforcement and regulatory agencies of other
jurisdictions which provide for and regulate the use
of information provided and received pursuant to the
agreement.
(b) Records, documents
and information in the possession of the state lottery division
received pursuant to an intelligence sharing,
reciprocal use or restricted use agreement entered
into by the state lottery division with a federal
department or agency, any law enforcement
agency, or the gaming enforcement or regulatory agency
of any jurisdiction shall be considered
investigative records of a law enforcement agency and
shall not be disseminated under any
condition without the permission of the person or
agency providing the record or information or
by order of a court with competent jurisdiction over
the matter.
41-9.1-22.
Standards for license, permit and registration issuance suitability
qualifications. -- (a) No applicant shall be eligible to obtain a
license to conduct gaming
operations, a permit or registration unless the state
lottery division: (i) has, with respect to a
casino license applicant, received a filing made under
oath that includes, without limitation, the
information set forth below, and (ii) is satisfied
that the applicant is suitable. In determining
whether a casino license applicant is suitable, the
state lottery division may consider, in addition
to the information set forth below, whether the
applicant has been found suitable and/or has been
issued a license to conduct casino gaming in other
jurisdictions.
(1) The identity of
every person in accordance with the provisions of this subdivision,
who has or controls any ownership interest in the applicant
with respect to which the license is
sought. If the disclosed entity is a trust, the
application shall disclose the names, addresses, birth
dates and social security number of all such
beneficiaries, if a corporation, the names, addresses,
birth dates, and social security numbers of all such
officers and directors; if a partnership, the
names, addresses, birth dates, and social security
numbers of all such partners, both general and
limited, if a limited liability company, the names,
addresses, birth dates, and social security
numbers of all such members. The applicant shall also
separately disclose in like manner any
person or entity directly or indirectly owning or
controlling a five percent (5%) or greater voting
interest in such owners of the applicant. If any such
person is an entity with one or more classes
of securities registered pursuant to the Securities
Exchange Act of 1934, as amended, the
applicant shall disclose names, addresses, birth dates
and social security numbers of all officers
and directors and provide public filings with the U.S.
Securities and Exchange Commission for
the past year. If any such persons or entities are
institutional investors or institutional lenders
owning or controlling a five percent (5%) or greater
voting interest in such owners of the
applicant, the applicant shall not be required to
provide detailed information on such institutional
investors or institutional lenders other than their
respective identities unless otherwise requested
by the commission. The applicant will forward any
request for additional information to the
institutional investors or institutional lenders.
(2) An
identification of any business, including, if applicable, the state of
incorporation
or registration, in which an applicant or any other
person or entity identified in subdivision (a)(1)
has an equity interest of five percent (5%) or more.
If an applicant is a corporation, partnership, or
other business entity, the applicant shall identify
any other corporation, partnership, or other
business entity in which it has an equity interest of
five percent (5%) or more; including, if
applicable, the state of incorporation or
registration. An applicant can comply with this
subdivision by filing a copy of the applicant's
registration with the securities exchange board if
the registration contains the information required by
this subsection.
(3) Whether an
applicant or any other person or entity identified in subdivision (a)(1) is
known by applicant to have been indicted, charged,
arrested, convicted, pleaded guilty or nolo
contendere, forfeited bail concerning, or has had expunged any
criminal offense under the laws of
any jurisdiction, either felony or misdemeanor, not
including traffic violations, regardless of
whether the offense has been expunged, pardoned or
reversed on appeal or otherwise, including
the date, the name and location of the court,
arresting agency and prosecuting agency, the case
caption, the docket number, the offense, the
disposition, and the location and length of
incarceration.
(4) Whether an
applicant or any other person or entity identified in subdivision (a)(1) is
known by applicant to have ever applied for or has
been granted any gaming license or certificate
issued by a licensing authority within this state or
any other jurisdiction that has been denied,
restricted, suspended, revoked, or not renewed, and a
statement describing the facts and
circumstances concerning the application, denial
restriction, suspension, revocation or
nonrenewal, including the licensing authority, the
date each action was taken, and the reason for
each action.
(5) Such
information, documentation and assurances as may be required to establish by
clear and convincing evidence:
a. the financial
stability, integrity and responsibility of the applicant, including, but not
limited to, bank references, financial statements, tax
returns and other reports filed with
governmental agencies;
b. the adequacy of
financial resources both as to the completion of the casino proposal
and the operation of the casino; and
c. that the
applicant has sufficient business ability and casino experience as to establish
the likelihood of creation and maintenance of a
successful, efficient and competitive casino
operation.
(6) Such
information, documentation and assurances to establish to the satisfaction of
the
state lottery division the applicant's good character,
honesty and integrity, and the applicant's
suitability qualification pursuant to this section.
(7) A statement
listing the names and titles of all
of any unit of government, and the spouses, parents,
and children of those public officials or
officers who, directly or indirectly, own any
financial interest in, have any beneficial interest in,
are the creditors of or hold any debt instrument
issued by, or hold or have any interest in any
contractual or service relationship with an applicant.
As used in this subsection, the terms "public
official" and "officer" do not include
a person who would have to be listed solely because of his
or her state or federal military service. This
subsection shall not apply to public officials or
officers or the spouses, parents and children thereof,
whose sole financial interest amounts to less
than a one percent (1%) ownership interest in a
publicly traded company.
(8) The name and
business telephone number of any attorney, counsel, lobbyist, agent, or
any other person representing an applicant in matters
before the state lottery division.
(9) Whether an
applicant or any other person or entity identified in subdivision (a)(1) has
ever filed or had filed against it a civil or
administrative action or proceeding in bankruptcy or has
ever been involved in any formal process to adjust,
defer, suspend, or otherwise work out the
payment of any debt including the date of filing, the
name and location of the court, the case
caption, the docket number, and the disposition.
(10) Whether an
applicant or any other person or entity identified in subdivision (a)(1)
has filed, or been served with, a complaint or other
notice filed with any public body, regarding
the delinquency in the payment of, or a dispute over
the filings concerning the payment of any tax
required under federal, state, or local law, including
the amount, type of tax, the taxing agency,
and the periods involved.
(11) Financial and
other information in the manner and form prescribed by the
commission.
(b) For purposes of
this chapter, "suitable" means that the proposed casino licensee, or
other applicant or permittee
has demonstrated to the state lottery division by clear and convincing
evidence that he or she:
(1) Is a person of
good character, honesty, and integrity or an entity whose reputation
indicates it possesses honesty, integrity and
sufficient knowledge of the gaming industry.
(2) Is a person
whose prior activities, criminal record, if any, reputation, habits, and
associations do not pose a threat to the public
interest of this state or to the effective regulation
and control of gaming, or create or enhance the
dangers of unsuitable, unfair, or illegal practices,
methods, and activities in the conduct of gaming or
the carrying on of the business and financial
arrangements incidental thereto.
(3) Is capable of
and likely to conduct the activities for which the applicant or casino
gaming operator is licensed or approved in accordance
with the provisions of this chapter and any
rules of the state lottery division.
(c) For purposes of
a casino licensee, the applicant shall also demonstrate by clear and
convincing evidence that:
(1) He or she or the
entity has adequate business competence and experience in the
operation of gaming operations.
(2) The proposed
financing of the conducting of gaming operations is:
(i)
Adequate for the nature of the proposed operation; and
(ii) From a suitable
source, subject to provisions of section 41-9.1-23 hereof.
(d) Information
provided by the applicant shall be used as a basis for a thorough
background investigation which the state lottery
division shall conduct. A false or incomplete
filing may be cause for denial of a license. The state
lottery division in its sole discretion may
provide the applicant a reasonable opportunity to
correct any deficiency in the filing.
(e) Applicants shall
consent, in writing, to being subject to the inspections, searches, and
seizures provided for in this chapter and to
disclosure to the state lottery division and its agents of
otherwise confidential records including tax records
held by any federal, state, or local agency, or
credit bureau or financial institution while applying
for or holding a license under this chapter.
(f) The state
lottery division may contract for, at the expense of the applicants, any
technical or investigative services that it shall
require to conduct such research and/or
investigation as it deems appropriate with respect to
its evaluation of the filing. A nonrefundable
application fee of fifty thousand dollars ($50,000)
shall be paid at the time of filing to defray the
costs associated with such research and investigation
conducted by the state lottery division. If
the costs of the research and investigation exceed
fifty thousand dollars ($50,000), the applicant
shall pay the additional amount.
(g) All licensees,
all permittees, and any other persons who have been
found suitable or
approved by the state lottery division shall maintain
suitability throughout the term of the license,
permit or approval. In the event of a current
prosecution of an offense, the state lottery division
shall have the discretion to defer a determination on
a person's continuing suitability pending the
outcome of the proceedings, provided that if a
decision is deferred pending such outcome, the
state lottery division, where applicable, may take
such action as is necessary to protect the public
trust, including the suspension of any license, permit
or registration.
(h) All holders of
licenses, permits and registrations, and any other persons required to
be found suitable, shall have a continuing duty to
inform the state lottery division of any possible
violation of this chapter and of any rules adopted by
the state lottery division. No person who so
informs the state lottery division or any law
enforcement authority within the state of a violation
or possible violation shall be discriminated against
by the applicant, licensee, permittee, registrant
or casino gaming operator because of supplying such
information, and shall be afforded the
protection of section 28-50-1 et al. "The Rhode
Island Whistleblower's Protection Act", so called.
(i)
The state lottery division shall have the power to call forward for a finding
of
suitability any person that is affiliated with a
licensee, permittee or registrant if necessary to
protect the public interest. Subject to section
41-9.1-24, any person who has or controls directly
or indirectly five percent (5%) or greater voting
interest shall meet all suitability requirements and
qualifications pursuant to the provisions of this
chapter, unless otherwise determined by the state
lottery division.
(j) If the state
lottery division finds that an individual owner or holder of a security of a
licensee, permittee, or
registrant, or of a holding or intermediary company of a licensee or
permittee, or registrant, or any person or persons with an
economic interest in a licensee,
permittee, or registrant, or a director, partner, officer, or
managerial employee is not suitable, and
if as a result, the licensee, permittee,
or registrant is no longer qualified to continue as a licensee,
permittee, or registrant, the state lottery division shall
propose action necessary to protect the
public interest, including the suspension of the license,
permit or registration. The state lottery
division may also issue under penalty of revocation or
suspension of a license, permit, or
registration, impose a condition of disqualification
naming the person or persons and declaring
that such person or persons may not:
(1) Receive
dividends or interest on securities of a person, or a holding or intermediary
company of a person, holding a license, permit, or
other approval.
(2) Exercise
directly, or through a trustee or nominee, a right conferred by securities of a
person, or a holding or intermediary company of a
person, holding a license, permit, or other
approval of the state lottery division issued pursuant
to the provisions of this chapter.
(3) Receive
remuneration or other economic benefit from any person, or a holding or
intermediary company of a person, holding a license,
permit, or other approval issued pursuant to
this chapter.
(4) Exercise
significant influence over activities of a person, or a holding or intermediary
company of a person, holding a license, permit, or
other approval issued pursuant to the
provisions of this chapter.
(5) Continue owning
or holding a security of a person, or a holding or intermediary
company of a person, holding a license, permit, or
other approval of the state lottery division
issued pursuant to the provisions of this chapter or
remain as a manager, officer, director, or
partner of a licensee or permittee.
41-9.1-23.
Casino license -- Disqualification criteria. -- The state
lottery division shall
not award a casino or other license, permit or
registration to any person who is disqualified on the
basis of any of the following criteria:
(1) Failure of the
applicant to prove by clear and convincing evidence that he or she is
suitable in accordance with the provisions of this
chapter.
(2) Failure of the
applicant to provide information and documentation to reveal any fact
material to a suitability determination, or the
supplying of information which is untrue or
misleading as to a material fact pertaining to the
qualification criteria.
(3) The conviction
of, or a plea of guilty or nolo contendere
by, the applicant, or of any
person required to be qualified under this chapter for
an offense punishable by imprisonment of
more than one year or a fine up to one thousand
dollars ($1,000); provided, however, a conviction
or plea of guilty or nolo contendere by the applicant shall not constitute an
automatic
disqualification as otherwise required if:
(i)
Ten (10) or more years has elapsed between the date of application and the
successful
completion of service of any sentence, deferred
adjudication, or period of probation or parole; or
(ii) Five (5) or
more years has elapsed between the date of application and the successful
completion of any sentence, deferred adjudication, or
period of probation or parole and the
conviction for an offense which was a misdemeanor offense.
(4) Notwithstanding
any provision of law to the contrary, the state lottery division may
consider the seriousness and circumstances of any
offense, any arrest, or any conviction in
determining suitability.
41-9.1-24.
Institutional investors or institutional lenders. -- (a)
Requirements of
disclosure or of being suitable or qualified with
respect to an institutional investor or institutional
lender, pursuant to the provisions of this chapter and
the rules adopted pursuant thereto, shall be
deemed to have been complied with upon submission of
documentation by the casino licensee
applicant, casino licensee, permittee
or the institution, as appropriate, sufficient to establish
qualifications as an institutional investor or
institutional lender as defined herein and it is
determined that:
(1) It owns, holds,
or controls publicly traded securities issued by a casino licensee
applicant, casino licensee, permittee
or holding, intermediate or parent company of a casino
licensee applicant, casino licensee or permittee in the ordinary course of business for investment
purposes.
(2) It does not
intend to exercise influence over the affairs of the issuer of such
securities, nor over any licensed or permitted
subsidiary of the issuer of such securities, in the
future, and that it agrees to notify the state lottery
division, in writing, within thirty (30) days if
such intent should change.
(b) The exercise of
voting privileges with regard to publicly traded securities shall not be
deemed to constitute the exercise of influence over
the affairs of the issuer of such securities.
(c) The state
lottery division may rescind the presumption of suitability for an
institutional lender or institutional investor at any time
if the institutional lender or investor
exercises or intends to exercise influence or control
over the affairs of the casino licensee
applicant, the casino licensee, permittee,
or a holding, intermediate, or parent company of the
casino licensee applicant, the casino licensee or permittee.
(d) This section
shall not be construed to preclude the state lottery division from
investigating the suitability or qualifications of an
institutional investor or institutional lender
should the state lottery division become aware of
facts or information which may result in such
institutional investor or institutional lender being
found unsuitable or disqualified.
41-9.1-25.
Uniform compulsive and problem gambling program. -- (a) The
gaming
industry through the American Gaming Association in
the Responsible Gaming Resource Guide
has stated that the industry recognizes that gaming
entertainment companies must stand up and
take responsible actions to address social problems
and costs that are created when some
individuals have problems handling the product or
services they provide. The industry has also
stated that they know that the vast majority of the
men and women who are their customers can
enjoy their games responsibly, but that they also know
the customers expect them to act
responsibly toward those who cannot. It is imperative
for the health, safety, and welfare of the
citizens of the state of
comprehensive compulsive and problem gambling programs
to be approved by the state lottery
division.
(b) Any casino
licensee shall adopt a comprehensive program that provides policies and
procedures that, at a minimum, cover the following
areas of concern and are designed to:
(1) Provide
procedures designed to prevent employees from willfully permitting a person
identified on a self-exclusion list from engaging in
gaming activities at the licensed establishment
or facility.
(2) Provide
procedures to offer employee assistance programs or equivalent coverage.
The procedures shall be designed to provide
confidential assessment and treatment referral for
gaming employees and, if covered, their dependents who
may have a gambling problem.
(3) Provide
procedures for the development of programs to address issues of underage
gambling and unattended minors at gaming facilities.
(4) Provide
procedures for the training of all employees that interact with gaming patrons
in gaming areas.
(5) Provide
procedures designed to prevent serving alcohol to individuals who appear to
be intoxicated consistent with the provisions of
(6) Provide
procedures for removing self-excluded person from the licensed
establishment or facility, including, if necessary,
procedures that include obtaining the assistance
of local law enforcement.
(7) Provide
procedures preventing any person identified on the self-exclusion list from
receiving any advertisement promotion, or other
targeted mailing after ninety (90) days of
receiving notice from the state lottery division that
the person has been placed on the self-
exclusion list.
(8) Provide
procedures for the distribution or posting within the gaming establishment of
information that promotes public awareness about
problem gambling and provides information on
available services and resources to those who have a
gambling problem.
(9) Provide
procedures for the distribution of responsible gaming materials to
employees.
(10) Provide
procedures for the posting of local curfews or laws and prohibitions, if any,
regarding underage gambling and unattended minors.
(11) Provide
procedures to prevent any person placed on the self-exclusion list from
having access to credit or from receiving
complimentary services, check-cashing services, and
other club benefits.
(c) (1) The state
lottery division shall provide by rule for the establishment of a list of
self-excluded persons from gaming activities at all
gaming establishments. Any person may
request placement on the list of self-excluded persons
by acknowledging in a manner to be
established by the state lottery division that the
person wishes to be excluded and by agreeing
that, during any period of voluntary exclusion, the
person may not collect any winnings or
recover any losses resulting from any gaming activity
at such gaming establishments.
(2) The rules of the
state lottery division shall establish procedures for placements on,
and removals from, the list of self-excluded persons,
provided that notwithstanding any law to the
contrary, prior to the removal from such list, the
state lottery division or a hearing officer shall
conduct a hearing not open to the general public at which
it shall be established by the person
seeking removal that there is no longer a basis to be
maintained on the self-exclusion list.
(3) The rules shall
establish procedures for the transmittal to the gaming establishment of
identifying information concerning self-excluded
persons, and shall require all the gaming
establishment to establish procedures designed, at a
minimum, to remove self-excluded persons
from targeted mailings or other forms of advertising
or promotions and deny self-excluded
persons access to credit, complimentaries,
check-cashing privileges and other club benefits.
(4) The rules shall
provide that the state lottery division's list of self-excluded persons
shall not be open to public inspection. The state
lottery division, any licensee, permittee and any
employee or agent thereof shall not be liable to any
self-excluded person or to any other party in
any judicial proceeding for any monetary damages or to
other remedy which may arise as a result
of disclosure or publication in any manner other than
a willfully unlawful disclosure to a third
party that is not an employee, affiliated company, or
employee or agent of the state lottery
division of the identity of any self-excluded person.
(d) A person who is
prohibited from any gaming establishment by any provision of this
chapter or pursuant to any self-exclusion rules
adopted by the state lottery division shall not
collect in any manner or proceeding any winnings or
recover any losses arising as a result of any
prohibited gaming activity.
(e) In any
proceeding brought against any licensee, permittee
any employee thereof for a
willful violation of the self-exclusion rules of the
state lottery division, the state lottery division
may order the forfeiture of any money or thing of
value obtained by the licensee from any self-
excluded person.
(f) Nothing herein
shall prevent any licensee or permittee from adopting
and maintaining
a self-exclusion policy that may impose different or
greater standards so long as such policy is in
addition to the state lottery division's
self-exclusion rules, and any actions taken pursuant to such
a policy of a licensee or permittee
shall be subject to the limitations of liability set forth in this
section.
(g) The provisions
of this section shall not require the state lottery division, licensees,
permittees and the employees thereof to identify problem or
compulsive gamblers, which is an
activity that requires medical and clinical expertise.
(h) (1) The state
lottery division may impose sanctions on a licensee or permittee,
under
this chapter, if the licensee, permittee,
or casino gaming operator willfully fails to exclude from
the licensed gaming establishment a person placed on
the self-exclusion list.
(2) The state
lottery division may seek the suspension of a licensor permit, if the licensee
or permittee engages in a
pattern of willful failure to exclude from the licensed gaming
establishment persons placed on the self-exclusion
list.
(i)
A licensee conducting gaming pursuant to the provisions of this chapter can
demonstrate to the state lottery division compliance
with the education and training provisions of
this section by providing proof of attendance by all
employees when they are hired and annually
thereafter at one of the following education programs:
(1) Training
programs conducted by the
retardation, and hospitals.
(2) Any other course
on problem and compulsive gaming training approved by the state
lottery division, including any courses offered by a
casino licensee.
41-9.1-26.
State lottery division designated excluded persons. -- (a) The
state lottery
division shall adopt rules to provide for the
establishment of a list of persons who are to be
excluded from any room, premises, or designated gaming
area of any establishment where
gaming is conducted pursuant to a license or contract
issued pursuant to the provisions of this
chapter. The rules must define the standards for
exclusion and include standards relating to the
following persons:
(1) Those who are
career or professional offenders as defined by the rules of the state
lottery division.
(2) Those who have
been convicted of a criminal offense specified by the state lottery
division.
(3) Those whose
presence in a gaming establishment operated by a casino licensee
would be adverse to the interests of
(b) The state lottery
division shall have the authority to place persons on the excluded
list. The state lottery division may not place a
person on such a list due to the person's race, color,
creed, national origin, sex, or disability.
(c) Whenever the
name and description of any person is placed on an excluded person's
list pursuant to this chapter, except at that person's
request, the state lottery division shall serve
notice of such fact to such person by either of the
following:
(1) By personal
service.
(2) By certified
mail to the last known address of such person.
(d) A person may
petition the state lottery division for removal of his or her name from
the list. The petitioner has the burden of proving he
or she does not meet the criteria of
subdivision (a)(1), (a)(2), or (a)(3) of this section.
(e) Any person who
has been placed on the list of persons to be excluded or ejected from
any gaming establishment pursuant to this chapter may
be imprisoned for up to six (6) months or
fined not more than five hundred dollars ($500), or
both, if he or she thereafter enters or attempts
to enter the premises of a gaming establishment
without first having obtained a determination by
the state lottery division that he or she should not
have been placed on the list of persons to be
excluded or ejected.
(f) The state
lottery division may impose sanctions on a licensee under this chapter if the
licensee willfully fails to exclude from the licensed
gaming establishment a person placed on the
exclusion list.
(g) The state
lottery division may seek suspension of a license if the licensee engages in
a pattern of willful failure to exclude from the
licensed gaming establishment persons placed on
the exclusion list.
(h) A person who is
placed on the list is entitled to a hearing for review of the listing.
Unless otherwise agreed by the state lottery division
and the named person, the hearing shall be
held not later than thirty (30) days after the receipt
of the petition.
41-9.1-27.
Advertising -- Compulsive gambling information. -- In any
advertisement
of gaming activities or of a gaming establishment that
is offered to the general public in print by
any casino licensee pursuant to the provisions of this
chapter, the toll-free telephone number of
the National Council on Problem Gambling or a similar
toll-free number approved by the state
lottery division shall be placed on such
advertisement.
41-9.1-28.
Exclusion or ejection of persons. -- (a) Any casino licensee may
exclude or
eject any person for any reason, except race, color,
creed, national origin, sex, or disability.
(b) Any casino
licensee and any employee of a casino licensee shall not be liable for any
monetary damages or any other remedy in any judicial
proceeding as a result of the exclusion or
removal of any person for any reason, except race,
color, creed, national origin, sex, or disability.
41-9.1-29.
Making false statements relating to gaming. -- (a) No person
shall
knowingly or intentionally make a material false
statement in any application for a license,
permit, suitability determination, or in support of a
proposal for a development agreement
pursuant to the provisions of this chapter. No person
shall intentionally make a material false
statement in any book, record, form, or any other
document which is required, compiled, or
maintained pursuant to the provisions of this chapter.
(b) Any person who
violates any of the provisions of this section shall be imprisoned for
not more than five (5) years and may be fined an
amount not to exceed ten thousand dollars
($10,000).
41-9.1-30. Use
of device to obtain advantage at casino game -- Forfeiture -- Notice. --
If, in playing a game in a licensed casino, the person
uses, or assists another in the use of, an
electronic, electrical or mechanical device which is
designed, constructed, or programmed
specifically for use in obtaining an advantage at
playing any game in a licensed casino, such
action is prohibited and is punishable by imprisonment
for a period of one year and/or a fine up to
one thousand dollars ($1,000). In addition, any device
used by any person in violation of this
section shall be subject to forfeiture. Each casino licensee
shall post notice of this prohibition and
the penalties of this section in a manner determined
by the state lottery division.
41-9.1-31.
Unlawful use of bogus chips or gaming billets, marked cards, dice,
cheating devices, unlawful coins -- Penalty. -- (a) It shall be unlawful for any person to play any
game and:
(1) Knowingly to use
bogus or counterfeit chips or gaming billets, or knowingly to
substitute and use in any such game cards or dice that
have been marked, loaded or tampered
with; or
(2) Knowingly to use
or possess any cheating device with intent to cheat or defraud.
(b) It shall be
unlawful for any person, playing or using any slot machine to:
(1) Knowingly to use
other than a lawful coin or legal tender of the
America or to use coin not of the same denomination as the
coin intended to be used in such slot
machine, except that in the playing of any slot
machine or similar gaming device, it shall be
lawful for any person to use gaming billets, tokens or
similar objects therein which are approved
by the state lottery division; or
(2) To use any
cheating or thieving device, including, but not limited to, tools, drills,
wires, coins or tokens attached to strings or wires,
or electronic or magnetic devices, to facilitate
the alignment of any winning combination or removing
from any slot machine any money or
other contents thereof.
(c) It shall be
unlawful for any person knowingly to possess or use while on the premises
of a licensed casino, any cheating, or thieving
device, including, but not limited to, tolls, wires,
drills, coins attached to strings or wires or
electronic or magnetic devices to facilitate removing
from any slot machine any money or contents thereof, except
that a duly authorized employee of
a licensed casino may possess and use any of the
foregoing only in furtherance of his or her
employment in the casino.
(d) It shall be
unlawful for any person knowingly to possess or use while on the premises
of any licensed casino any key or device designed for
the purpose of or suitable for opening or
entering any slot machine or similar gaming device or
drop box, except that a duly authorized
employee of a licensed casino, or of the state lottery
division may possess and use any of the
foregoing only in furtherance of his or her
employment.
(e) Any person who
violates any of the provisions of this section shall be imprisoned for
no more than (5) five years and may be fined an amount
not to exceed ten thousand dollars
($10,000).
41-9.1-32.
Cheating games and devices in a licensed casino -- Penalty. --
(a) It shall be
unlawful:
(1) Knowingly to
conduct, carry on, operate, deal or allow to be conducted, carried on,
operated or dealt any cheating or thieving game or
device; or
(2) Knowingly to
deal, conduct, carry on, operate or expose for play any game or games
played with cards, dice or any mechanical device, or
any combination of games or devices, which
have in any manner been marked or tampered with, or
placed in a condition, or operated in a
manner, the result of which tends to deceive the
public or tends to alter the normal random
selection of characteristics or the normal chance of
the game which could determine or alter the
result of the game.
(3) It shall be
unlawful knowingly to use or possess any marked cards, loaded dice,
plugged or tampered with machines or devices.
(b) Any person who
violates any of the provisions of this section shall be imprisoned for
not more than five (5) years and may be fined an
amount not to exceed ten thousand dollars
($10,000).
41-9.1-33.
Skimming of gaming proceeds. -- (a) The crime of skimming of
gaming
proceeds is the intentional excluding or the taking of
any action in an attempt to exclude any
thing or its value from the deposit, counting,
collection, or computation of:
(1) Gross revenues
from gaming operations or activities.
(2) Net gaming
proceeds.
(3) Amounts due the
state pursuant to the provisions of this chapter.
(b) Whoever commits
the crime of skimming of gaming proceeds when the amount
skimmed, or to be skimmed, is less than one thousand
dollars ($1,000) may be imprisoned for not
more than five (5) years or may be fined not more than
five thousand dollars ($5,000), or both.
(c) Whoever commits
the crime of skimming of gaming proceeds when the amount
skimmed, or to be skimmed, is one thousand dollars
($1,000) or more shall be imprisoned for not
less than one year and not more than twenty (20) years
or may be fined not more than ten
thousand dollars ($10,000) or the amount skimmed or to
be skimmed, whichever is greater, or
both.
41-9.1-34.
Conduct subject to civil penalty. -- In addition to other
penalties provided
for under this chapter, a person who conducts a gaming
operation without first obtaining a license
to do so, or a licensee who continues to conduct
gambling games after revocation of the licensee's
license, or any licensee who conducts or allows to be
conducted any unauthorized gambling
games in a casino in which the licensee is authorized
to conduct its gaming operation, is subject
to a civil penalty equal to the amount of gross
receipts derived from wagering on the gambling
games whether unauthorized or authorized, conducted on
that day as well as confiscation and
forfeiture of all gambling game equipment used in the
conduct of unauthorized gambling games.
41-9.1-35.
Property subject to seizure, confiscation, destruction, or forfeiture. --
Any
equipment, gaming device, money, apparatus, material
of gaming, proceeds, substituted proceeds,
or real or personal property used, obtained, or
received in violation of this chapter shall be subject
to seizure, confiscation, destruction, or forfeiture.
41-9.1-36.
Prohibited conduct -- Violation as felony -- Violation as misdemeanor --
Penalties -- Presumption -- Venue. -- (a) A person is guilty of a felony punishable by
imprisonment for not more than ten (10) years or a
fine of not more than one hundred thousand
dollars ($100,000) or both, and shall be barred from
receiving or maintaining a license, for doing
any of the following:
(1) Conducting a
gaming operation where wagering is used or to be used without a
license issued by the state lottery division.
(2) Conducting a
gaming operation where wagering is permitted other than in the manner
specified pursuant to the provisions of this chapter.
(3) Knowingly providing
false testimony to the state lottery division or its authorized
representative while under oath.
(b) A person commits
a felony punishable by imprisonment for not more than ten (10)
years or a fine of not more than one hundred thousand
dollars ($100,000) or both, and, in
addition, shall be barred for life from a gaming
operation under the jurisdiction of the state lottery
division if the person does any of the following:
(1) Offers,
promises, or gives anything of value or benefit to a person who is connected
with a licensee or affiliated company, including, but
not limited to, an officer or employee of a
casino licensee or holder of an occupational license
pursuant to an agreement or arrangement or
with the intent that the offer, promise, or thing of
value or benefit will influence the actions of the
person to whom the offer, promise, or gift was made in
order to affect or attempt to affect the
outcome of a gambling game.
(2) Solicits or
knowingly accepts or receives a promise of anything of value or benefit
while the person is employed by or connected with a
licensee, including, but not limited to, an
officer or employee of a casino licensee or holder of
an occupational license, pursuant to an
understanding or arrangement or with the intent that
the promise or thing of value or benefit will
influence the actions of the person to affect or
attempt to affect the outcome of a gambling game.
(c) A person, or an
affiliate of a person, is guilty of a misdemeanor punishable by
imprisonment for not more than one year or a ten
thousand dollar ($10,000) fine, or both, for
doing any of the following:
(1) Knowingly making
a wager if the person is under twenty-one (21) years of age or
permitting a person under twenty-one (21) years of age
to make a wager.
(2) Willfully
failing to appear before or provide an item to the state lottery division at
the
time and place specified in a subpoena or summons
issued by the state lottery division or
executive director.
(3) Willfully
refusing, without just cause, to testify or provide items in answer to a
subpoena, subpoena duces tecum or summons issued by the state lottery division or
executive
director.
(4) Conducting or permitting
a person who is not licensed or permitted pursuant to this
chapter to conduct activities required to be licensed
or permitted under the casino, occupational,
and suppliers licensee and permittee
provisions in this chapter or in rules promulgated by the state
lottery division.
(5) Leasing,
pledging, borrowing, or loaning money against a casino, supplier, or
occupational license or permit.
41-9.1-37. Alcoholic beverages shall only be sold or
distributed in a casino pursuant to state law.
41-9.1-38.
Legal shipments of gaming devices into the state. -- All
shipments of
gaming devices, including slot machines, into any town
or city of this state within which gaming
is authorized, the registering, recording, and
labeling of which have been duly done by the
manufacturer or dealer thereof in accordance with
sections 3 and 4 of that certain chapter of the
Congress of the
interstate and foreign commerce", approved
January 2, 1951, being c. 1194, 64 Stat. 1134, and
also designated as 15 U.S.C. sections 1171-1177, shall
be deemed legal shipments thereof into the
State of
41-9.1-39.
Declaration of state's exemption from operation of provisions of 15 U.S.C.
section 1172. -- Pursuant to section 2 of that certain chapter of the
Congress of the
entitled "An act to prohibit transportation of
gaming devices in interstate and foreign commerce",
approved January 2, 1951, being c. 1194, 64 Stat.
1134, and also designated as 15 U.S.C. sections
1171-1177, the state of
members of its legislature, does hereby in this
section, and in accordance with and in compliance
with the provisions of section 2 of such chapter of
Congress, declare and proclaim that any town
or city of the State of
provisions of section 2 of that certain chapter of the
Congress of the
act to prohibit transportation of gaming devices in
interstate and foreign commerce", designated
15 U.S.C. sections 1171-1177, approved January 2,
1951.
41-9.1-40.
Smoking. -- (a) Notwithstanding any other provisions of the
general laws or
regulations adopted thereunder
to the contrary, including, but not limited to, the provisions of
chapter 20.10 of title 23, the provisions of this
section shall govern and control with respect to
any and all smoking prohibitions as such relate to a
casino licensed under this chapter.
(b) Any casino
licensed under this chapter shall provide designated smoking and
nonsmoking gaming areas in its facility.
(c) The designated
nonsmoking gaming area shall be physically separated from any
smoking area and shall be required to have separate
and distinct ventilation systems so as to
prohibit the migration of smoke into the nonsmoking
area.
(d) Except with
respect to bars located in a designated smoking area within the gaming
area, any bar or restaurant located in a casino shall
be nonsmoking and be physically separate
from any smoking area and shall have a separate
ventilation system so as to prohibit the migration
of smoke into the restaurant.
(e) Any casino
licensee shall promulgate rules and regulations to allow its employees the
right to work in a smoke free environment. These rules
shall include, but not be limited to,
provisions on the right to opt out of working in a
smoking area and a provision that no adverse
impact or action could take place against the employee
if they request to opt out of a smoking
area. The rules promulgated by the casino licensee
shall be filed with the state lottery division
with copies to the general assembly and the department
of health prior to the opening of the
casino for business.
(f) A casino
licensee shall file an annual report with the state lottery division with
copies
to the general assembly and department of health
detailing smoke mitigation efforts undertaken
by the licensee during the previous year and plans for
the upcoming year. The licensee shall be
required to monitor air quality with current
appropriate technology. A professional HVAC
engineer (or other appropriate professional) shall
certify the monitoring process and results. The
results of the monitoring process shall be included in
the annual report.
(g) Any enactment relating
to the provisions of this section on a casino licensed under
this chapter or the casino licensee shall be by
statute as enacted by the general assembly;
provided, however, that the general assembly may by
statute delegate such authority to the cities
and towns.
41-9.1-41.
Severability. -- If any provision of this chapter or the
application thereof shall
for any reason be judged invalid, that judgment shall
not affect, impair, or invalidate the
remainder of the law, but shall be confined in its
effect to the provision or application directly
involved in the controversy giving rise to the
judgment.
SECTION
3. Sections 42-61.2-5, 42-61.2-8 and 42-61.2-9 of the General Laws in
Chapter 42-61.2 entitled
"Video Lottery Terminal" are hereby repealed.
42-61.2-5.
Exclusion of minors. -- No person under the age of eighteen (18)
years may
play a video lottery game or a Table Game authorized
by this chapter, nor shall any licensed
video lottery or Table Game retailer knowingly permit
a minor to play a video lottery machine or
Table Game or knowingly pay a minor with respect to a
video lottery credit slip or Table Game
chip. Violation of this section shall be punishable by
a fine of five hundred dollars ($500).
42-61.2-8.
Penalty for manipulation or tampering. -- Any person who, with
intent to
manipulate the outcome, payoff, and/or operation of a
video lottery terminal or Table Game,
manipulates the outcome, prize, or operation of a
video lottery terminal or Table Game by
physical or electronic means shall be guilty of a
felony punishable by imprisonment for not more
than ten (10) years or by a fine of not less than ten
thousand ($10,000) dollars or both.
42-61.2-9.
Devices in use lawful in this state. -- (a) No other law providing
for any
penalty or disability for the:
(1) Manufacture,
keeping, possession, or operation of, or permitting the manufacture,
keeping, possession, or operation of any machine,
device, apparatus, or subassembly of these
items, to be used in gambling or playing a game of
chance for money; or
(2) Any acts done in
connection with a lottery, shall apply to the manufacture, keeping,
possession, or operation of, or the permitting of the
manufacture, keeping, possession, or
operation of any machine, device, apparatus, or
subassembly of these items performed pursuant to
this chapter.
(b) Notwithstanding
the provisions of any other law, the sale, lease, transportation,
storage, and manufacture of machines, devices, apparatus,
and subassemblies of these items to be
used in gambling or playing a game of chance for money
or other valuable consideration other
than lottery games, is permitted, provided that these
machines, devices, apparatus, and
subassemblies of these items are sold, leased,
transported, stored, and manufactured for
subsequent transportation in interstate or foreign
commerce. A violation of this section is a
misdemeanor.
SECTION
4. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby
amended by adding thereto the following chapter:
CHAPTER
61.3
CASINO
GAMING
42-61.3-1. Gaming
enforcement unit. -- (a) The superintendent of the state police
shall
establish a gaming enforcement unit within the state
police.
(b) The gaming
enforcement unit shall work both independently and in conjunction and
cooperation with the division of state lottery and the
department of business regulation to ensure
the integrity of casino gaming activities in the
state.
(c) The
superintendent of the state police shall assign such supervisory and
investigative
personnel and other resources to the gaming
enforcement unit as may be necessary to fulfill its
obligations under this chapter. No person assigned to the
casino gaming unit, other than in the
performance of his/her official duties, shall place a
wager in a facility licensed by the division of
state lottery.
(d) The gaming
enforcement unit's responsibilities shall include, but not be limited to:
(1) Conducting due
diligence investigations and background investigations with respect
to entities and individuals required to be licensed by
the division and/or the department of
business regulation;
(2) Monitoring for
and investigating potential criminal activity; and
(3) Taking any and
all actions necessary to enforce the criminal laws related to casino
gaming activities.
(e) Any and all
individuals and/or entities licensed by the division of state lottery and/or
the department of business regulation shall cooperate
with the gaming enforcement unit in the
performance of its duties.
(f) The gaming
enforcement unit may independently conduct gaming related
investigations and background investigations that
require out-of-state travel. It shall be the
responsibility of the applicant and/or licensee, as
applicable, to reimburse the state police for all
travel-related expenses incurred while conducting
gaming-related investigations and background
investigations.
(g) Notwithstanding
any other provisions of the general laws, members of the gaming
enforcement unit shall have the power to enter the
premises of a gaming facility licensed by the
division of state lottery at any time, to the extent
permissible under the constitutions of the state
of
personnel at any time without notice for the following
purposes:
(1) To inspect and
examine the premises of a gaming facility where casino gaming
activities are conducted;
(2) To inspect,
examine and/or seize any and all tangible property related to casino
gaming activities;
(3) To inspect,
examine, seize and/or audit all computers, books, ledgers, documents,
writing, photocopies, correspondence, records,
videotapes, including electronically stored
records, money receptacles, other containers and their
contents, and equipment in or on which the
records are stored at a licensed gaming facility, its
parking areas and/or adjacent buildings and
structures on the premises of the gaming facility;
(4) To conduct
criminal investigations into violations of the criminal laws or the rules and
regulations promulgated thereto;
(5) To eject, exclude
or authorize the ejection or exclusion of a person from a gaming
facility if the person allegedly violated any criminal
law, or when the division of state lottery or
the casino gaming unit determines that the person's
conduct or reputation is such that his or her
presence within the gaming facility may compromise the
honesty and integrity of casino gaming
activities or interfere with the orderly conduct of
casino gaming activities. Nothing herein shall
preclude any other law enforcement or regulatory
agency from having similar authority as
otherwise permitted by law or regulation; and
(6) Take any and all
other actions as may be reasonable or appropriate to carry out their
duties and responsibilities under this chapter.
42-61.3-2. Casino
gaming crimes. -- (a) Definitions as used in this chapter:
(1) "Casino
gaming" shall have the meaning set forth in the
subdivision 42-61.2-1(8).
(2) "Cheat"
means to alter the element of chance, method of selection, or criteria which
determines:
(i)
The result of the game;
(ii) The amount or
frequency of payment in a game, including intentionally taking
advantage of a malfunctioning machine;
(iii) The value of a
wagering instrument; or
(iv) The value of a
wagering credit.
(3) "Cheating
device" means any physical, mechanical, electromechanical, electronic,
photographic, or computerized device used in such a
manner as to cheat, deceive or defraud a
casino game. This includes, but is not limited to:
(i)
Plastic, tape, string or dental floss, or any other item placed inside a coin
or bill
acceptor or any other opening in a video lottery
terminal in a manner to simulate coin or currency
acceptance;
(ii) Forged or stolen
keys used to gain access to a casino game to remove its contents; and
(iii) Game cards or
dice that have been tampered with, marked or loaded.
(4) "Gaming
facility" means any facility authorized to conduct casino gaming as
defined
in the
adjacent buildings and structures.
(5)
"Paraphernalia for the manufacturing of cheating devices" means the
equipment,
products or materials that are intended for use in
manufacturing, producing, fabricating,
preparing, testing, analyzing, packaging, storing or
concealing a counterfeit facsimile of the
chips, tokens, debit instruments or other wagering
devices approved by the division of state
lottery or lawful coin or currency of the
limited to:
(i)
Lead or lead alloy molds, forms, or similar equipment capable of producing a
likeness
of a gaming token or
(ii) Melting pots or
other receptacles;
(iii) Torches, tongs,
trimming tools or other similar equipment; and
(iv) Equipment that
can be used to manufacture facsimiles of debit instruments or
wagering instruments approved by the division of state
lottery.
(6) "Table
game" shall have the meaning set forth in
subdivision 42-61.2-1(11).
(7) "Wager"
means a sum of money or representative of value that is risked on an
occurrence for which the outcome is uncertain.
(b) Prohibited Acts
and Penalties. It shall be unlawful for any person to:
(1) Use, or attempt
to use, a cheating device in a casino game or to have possession of
such a device in a gaming facility. Any person
convicted of violating this section shall be guilty
of a felony punishable by imprisonment for not more
than ten (10) years or a fine of not more
than one hundred thousand dollars ($100,000), or both;
(2) Use, acquire, or
possess paraphernalia with intent to cheat, or attempt to use, acquire
or possess, paraphernalia with the intent to
manufacture cheating devices. Any person convicted
of violating this section shall be guilty of a felony
punishable by imprisonment for not more than
ten (10) years or a fine of not more than one hundred
thousand dollars ($100,000), or both;
(3) Cheat, or attempt
to cheat, in order to take or collect money or anything of value,
whether for one's self or another, in or from a casino
game in a gaming facility. Any person
convicted of violating this section shall be guilty of
a felony punishable by imprisonment for not
more than ten (10) years or a fine of not more than
one hundred thousand dollars ($100,000), or
both;
(4) Conduct, carry
on, operate, deal, or attempt to conduct, carry on, operate or deal, or
allow to be conducted, carried on, operated, or dealt,
any cheating game or device. Any person
convicted of violating this section shall be guilty of
a felony punishable by imprisonment for not
more than ten (10) years or a fine of not more than
one hundred thousand dollars ($100,000), or
both;
(5) Manipulate or
alter or attempt to manipulate or alter, with the intent to cheat, any
physical, mechanical, electromechanical, electronic,
or computerized component of a casino
game, contrary to the designed and normal operational
purpose for the component. Any person
convicted of violating this section shall be guilty of
a felony punishable by imprisonment for not
more than ten (10) years or a fine of not more than
one hundred thousand dollars ($100,000), or
both;
(6) Use, sell or
possess, or attempt to use, sell or possess, counterfeit: coins, slugs,
tokens, gaming chips, debit instruments, player
rewards cards or any counterfeit wagering
instruments and/or devices resembling tokens, gaming
chips, debit or other wagering instruments
approved by the division of state lottery for use in a
casino game in a gaming facility. Any person
convicted of violating this section shall be guilty of
a felony punishable by imprisonment for not
more than ten (10) years or a fine of not more than
one hundred thousand dollars ($100,000), or
both;
(7)(i) Place, increase, decrease, cancel or remove a wager or
determine the course of play
of a table game, or attempt to place, increase,
decrease, cancel or remove a wager or determine
the course of play of a table game, with knowledge of
the outcome of the table game where such
knowledge is not available to all players; or
(ii) Aid, or attempt to
aid anyone in acquiring such knowledge for the purpose of placing,
increasing, decreasing, cancelling or removing a wager
or determining the course of play of the
table game. Any person convicted of violating this
section shall be guilty of a felony punishable
by imprisonment for not more than ten (10) years or a
fine of not more than one hundred
thousand dollars ($100,000), or both;
(8) Claim, collect or
take, or attempt to claim, collect or take, money or anything of value
in or from a casino game or gaming facility, with
intent to defraud, or to claim, collect or take an
amount greater than the amount won. Any person
convicted of violating this section shall be
guilty of a felony punishable by imprisonment for not
more than ten (10) years or a fine of not
more than one hundred thousand dollars ($100,000), or
both;
(9) For any employee
of a gaming facility or anyone acting on behalf of or at the
direction of an employee of a gaming facility, to
knowingly fail to collect, or attempt to fail to
collect, a losing wager or pay, or attempt to pay, an
amount greater on any wager than required
under the rules of a casino game. Any person convicted
of violating this section shall be guilty of
a felony punishable by imprisonment for not more than
ten (10) years or a fine of not more than
one hundred thousand dollars ($100,000), or both;
(10) Directly or
indirectly offer, or attempt to offer, to conspire with another, or solicit, or
attempt to solicit, from another, anything of value,
for the purpose of influencing the outcome of
a casino game. Any person convicted of violating this
section shall be guilty of a felony
punishable by imprisonment for not more than ten (10)
years or a fine of not more than one
hundred thousand dollars ($100,000), or both;
(11) Use or possess,
or attempt to use or possess, at a gaming facility, without the written
consent of the director of the division of state
lottery, any electronic, electrical or mechanical
device designed, constructed or programmed to assist
the user or another person with the intent
to:
(i)
Predict the outcome of a casino game;
(ii) Keep track of
the cards played;
(iii) Analyze and/or predict
the probability of an occurrence relating to the casino game;
and/or
(iv) Analyze and/or
predict the strategy for playing or wagering to be used in the casino
game. Any person convicted of violating this section
shall be guilty of a felony punishable by
imprisonment for not more than ten (10) years or a
fine of not more than one hundred thousand
dollars ($100,000), or both;
(12) Skim, or attempt
to skim, casino gaming proceeds by excluding anything of value
from the deposit, counting, collection, or computation
of:
(i)
Gross revenues from gaming operations or activities;
(ii) Net gaming
proceeds; and/or
(iii) Amounts due the
state pursuant to applicable casino gaming-related laws. Any
person convicted of violating this section shall be
guilty of a felony punishable by imprisonment
for not more than ten (10) years or a fine of not more
than one hundred thousand dollars
($100,000), or both;
(13) Cheat, or
attempt to cheat, in the performance of his/her duties as a dealer or other
casino employee by conducting one's self in a manner
that is deceptive to the public or alters the
normal random selection of characteristics or the
normal chance or result of the game, including,
but not limited to, using cards, dice or any cheating
device(s) which have been marked, tampered
with or altered. Any person convicted of violating
this section shall be guilty of a felony
punishable by imprisonment for not more than ten (10)
years or a fine of not more than one
hundred thousand dollars ($100,000), or both;
(14) Possess or use,
or attempt to use, without proper authorization from the state lottery
division, while in the gaming facility any key or
device designed for the purpose of or suitable for
opening or entering any self-redemption unit (kiosk),
vault, video lottery terminal, drop box or
any secured area in the gaming facility that contains
casino gaming and/or surveillance
equipment, computers, electrical systems, currency,
cards, chips, dice, or any other thing of value.
Any person convicted of violating this section shall
be guilty of a felony punishable by
imprisonment for not more than ten (10) years or a
fine of not more than one hundred thousand
dollars ($100,000), or both;
(15) Tamper and/or interfere,
or attempt to tamper and/or interfere, with any casino
gaming and/or surveillance equipment, including, but
not limited to, related computers and
electrical systems. Any person convicted of violating
this section shall be guilty of a felony
punishable by imprisonment for not more than ten (10)
years or a fine of not more than one
hundred thousand dollars ($100,000), or both;
(16) Access,
interfere with, infiltrate, hack into or infect, or attempt to access,
interfere
with, infiltrate, hack into or infect, any casino
gaming-related computer, network, hardware
and/or software or other equipment. Any person
convicted of violating this section shall be guilty
of a felony punishable by imprisonment for not more
than ten (10) years or a fine of not more
than one hundred thousand dollars ($100,000), or both;
(17) Sell, trade,
barter, profit from or otherwise use to one's financial advantage, or
attempt to sell, trade, barter, profit from or
otherwise use to one's financial advantage, any
confidential information related to casino-gaming
operations, including, but not limited to, data
(whether stored on a computer's software, hardware,
network or elsewhere), passwords, codes,
surveillance and security characteristics and/or
vulnerabilities, and/or non-public internal
controls, policies and procedures related thereto. Any
person convicted of violating this section
shall be guilty of a felony punishable by imprisonment
for not more than ten (10) years or a fine
of not more than one hundred thousand dollars
($100,000), or both;
(18) Conduct a gaming
operation, or attempt to conduct a gaming operation, where
wagering is used or to be used without a license
issued by the division of state lottery. Any
person convicted of violating this section shall be
guilty of a felony punishable by imprisonment
for not more than ten (10) years or a fine of not more
than one hundred thousand dollars
($100,000), or both;
(19) Provide false
information and/or testimony to the division of state lottery,
department of business regulation, or their authorized
representatives and/or the state police while
under oath. Any person convicted of violating this
section shall be guilty of a felony punishable
by imprisonment for not more than ten (10) years or a
fine of not more than one hundred
thousand dollars ($100,000), or both;
(20) Play a casino
game and/or make a wager, or attempting to play a casino game and/or
make a wager, if under the age eighteen (18) years. Any
person charged under this section shall
be referred to family court; or
(21) Permit, or
attempt to permit, a person to play a casino game and/or accept, or
attempt to accept, a wager from a person, if he/she is
under the age of eighteen (18) years. Any
person convicted of violating this section be guilty
of a misdemeanor punishable by
imprisonment for not more than one year or a fine of
not more than one thousand dollars
($1,000), or both.
42-61.3-3. Barred
from gaming facility; Restitution; Confiscation. -- (a) In addition,
anyone so convicted of any crime above may be barred
for a period of time, including life, from
any gaming facility by court order, the division of
state lottery or the gaming facility.
(b) Upon conviction
of either a felony or misdemeanor in this chapter, the sentencing
judge may require full restitution for any monetary
losses suffered.
(c) Any cheating
device, paraphernalia used to manufacture cheating devices, counterfeit:
coins, slugs, tokens, gaming chips, debit instruments,
player rewards cards or any counterfeit
wagering instruments and/or devices resembling tokens,
gaming chips, debit or other wagering
instruments or any other equipment or real or personal
property used, obtained or received in
violation of this chapter, shall be confiscated by the
division of state lottery, the gaming facility
and/or the gaming enforcement unit of the state police
and shall be forfeited to the gaming
enforcement unit. This section shall include the
confiscation and forfeiture of vehicles containing
any item(s) listed above.
42-61.3-4.
Additional crimes. -- The criminal offenses under this chapter shall
be in
addition to any other offenses under the general laws
and nothing in this chapter shall be
construed so as to prohibit the prosecution for any
other such offenses.
SECTION
5. Section 42-61.2-2.1 of the General Laws in Chapter 42-61.2 entitled
"Video
Lottery Terminal" is
hereby amended to read as follows:
gaming shall be authorized at the facility of the
licensed video lottery terminal retailer known as
"
Section 22 of the Rhode Island Constitution are met
with respect to said facility at the general
election next held after enactment of this section.
(1) With respect to the
"
effective upon: (i) The
certification by the secretary of state that the qualified voters of the state
have approved the expansion of gambling at such
facility to include casino gaming; and (ii) The
certification by the board of canvassers of the town
of
of
(b) The general
assembly finds that:
(1) The operation of
casino gaming at
of the state and enhance state and local revenues;
(2) Pursuant to Article
VI, Section 15 of the Rhode Island Constitution and the specific
powers, authorities and safeguards set forth in
subsection (c) herein in connection with the
operation of casino gaming, the state shall have full
operational control over the specified
location at which casino gaming shall be conducted;
(3) It is in the best
interest of the state to have the authorization to operate casino gaming
as specified at
(4) It is in the best
interest of the state to conduct an extensive analysis and evaluation of
competitive casino gaming operations and thereafter
for the general assembly to enact
comprehensive legislation during the 2012 legislative
session to determine the terms and
conditions pursuant to which casino gaming would be
operated in the state if it is authorized as
set forth herein.
(c) Notwithstanding the
provisions of any other law and pursuant to Article VI, Section
15 of the Rhode Island Constitution, the state is
authorized to operate, conduct and control casino
gaming at
the division of state lottery and/or the department of
business regulation, shall have full
operational control to operate the foregoing facility,
the authority to make all decisions about all
aspects of the functioning of the business enterprise,
including, without limitation, the power and
authority to:
(1) Determine the
number, type, placement and arrangement of casino gaming games,
tables and sites within the facility;
(2) Establish with
respect to casino gaming one or more systems for linking, tracking,
deposit and reporting of receipts, audits, annual
reports, prohibitive conduct and other such
matters determined from time to time;
(3) Collect all
receipts from casino gaming, require that
gaming gross receipts in trust for the state through
the division of state lottery, deposit such
receipts into an account or accounts of its choice,
allocate such receipts according to law, and
otherwise maintain custody and control over all casino
gaming receipts and funds;
(4) Hold and exercise
sufficient powers over
allow for adequate oversight and verification of the
financial aspects of casino gaming at the
facility, including, without limitation:
(i)
The right to require
statement, and any other necessary information or
reports; and
(ii) The authority and
power to conduct periodic compliance or special or focused audits
of the information or reports provided, as well as the
premises with the facility containing records
of casino gaming or in which the business of
conducted;
(5) Monitor all casino
gaming operations and have the power to terminate or suspend
any casino gaming activities in the event of an
integrity concern or other threat to the public trust,
and in furtherance thereof, require the licensed video
lottery retailer to provide a specified area or
areas from which to conduct such monitoring
activities;
(6) Define and limit
the rules of play and odds of authorized casino gaming games,
including, without limitation, the minimum and maximum
wagers for each casino gaming game;
(7) Have approval
rights over matters relating to the employment of individuals to be
involved, directly or indirectly, with the operation
of casino gaming at
(8) Establish
compulsive gambling treatment programs;
(9) Promulgate, or propose
for promulgation, any legislative, interpretive and procedural
rules necessary for the successful implementation,
administration and enforcement of this
chapter; and
(10) Hold all other
powers necessary and proper to fully effectively execute and
administer the provisions of this chapter for its
purpose of allowing the state to operate a casino
gaming facility through a licensed video lottery
retailer hosting said casino gaming on behalf of
the State of
(d) Subject to subsection
(a) above, the state, through the division of state lottery and/or
the department of business regulation, may expand
issued, or issue
authorized by this act.
(e) Subject to
subsection (a) above, all rules and regulations shall be promulgated by the
state, through the division of state lottery and the
department of business regulation, in
accordance with the authority conferred upon the
general assembly pursuant to Article VI,
Section 15 of the
the state, through the division of state lottery
and/or the department of business regulation, shall
have authority to issue such regulations as it deems
appropriate pertaining to control, operation
and management of casino gaming as specifically set
forth in subsections (b) and (c) herein.
(f) The
authority to monitor and investigate criminal
violations related to casino gaming activities
consistent with chapter 42-61.3
SECTION
6. This act shall take effect upon passage.
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LC02729/SUB A
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