Chapter 005
2016 -- H 7228 SUBSTITUTE A
Enacted 03/04/2016

A N   A C T
RELATING TO SPORTS, RACING, AND ATHLETICS -- AUTHORIZING STATE-OPERATED GAMING AT A FACILITY IN TIVERTON

Introduced By: Representative John J. DeSimone
Date Introduced: January 20, 2016

It is enacted by the General Assembly as follows:
     SECTION 1. Section 41-7-3 of the General Laws in Chapter 41-7 entitled "Jai Alai" is
hereby amended to read as follows:
     41-7-3. Regulation of operations -- Licensing. -- (a) The division of racing and athletics
is hereby authorized to license jai alai in the city of Newport. The operation of a fronton shall be
under the division's supervision. The division is hereby authorized to issue rules and regulations
for the supervision of the operations.
      (b) Any license granted under the provisions of this chapter shall be subject to the rules
and regulations promulgated by the division and shall be subject to suspension or revocation for
any cause which the division shall deem sufficient after giving the licensee a reasonable
opportunity for a hearing at which he or she shall have the right to be represented by counsel. If
any license is suspended or revoked, the division shall state the reasons for the suspension or
revocation and cause an entry of the reasons to be made on the record books of the division.
      (c) Commencing July 1, 2003, the division of racing and athletics shall be prohibited to
license jai alai in the city of Newport. Any license having been issued and in effect as of that date
shall be null and void and any licensee shall be prohibited from operating thereunder; provided,
however, that any entity having been issued a license to operate a jai alai fronton prior to July 1,
2003, and any successor in interest to such entity by reason of acquiring the stock or substantially
all of the assets of such entity, shall be deemed a pari-mutuel licensee as defined in § 42-61.2-1 et
seq., and a licensee as defined in § 41-11-1 et seq.; and provided further, any license to operate a
jai alai fronton in effect with regard to a facility in Newport shall terminate and be of no further
force or effect upon the commencement of the operation of video lottery games at a facility
owned by Twin River-Tiverton located in the town of Tiverton.
     (d) The division of racing and athletics is hereby authorized to grant a pari-mutuel license
to Twin River-Tiverton with respect to a facility owned by Twin River-Tiverton, located at the
intersection of William S. Canning Boulevard and Stafford Road in the town of Tiverton,
provided that the requirements of R.I. Const., Art. VI, Sec. XXII are met with respect to said
facility, namely that: (1) The secretary of state certifies that the qualified voters of the state have
approved authorizing a facility owned by Twin River-Tiverton, located at the intersection of
William S. Canning Boulevard and Stafford Road in the town of Tiverton, to be licensed as a
pari-mutuel facility and offer state-operated video lottery games and state-operated casino
gaming, such as table games; and (2) The board of canvassers of the town of Tiverton certifies (or
there is certified on its behalf) that the qualified electors of the town of Tiverton have approved
authorizing a facility owned by Twin River-Tiverton, located at the intersection of William S.
Canning Boulevard and Stafford Road in the town of Tiverton, to be licensed as a pari-mutuel
facility and offer state-operated video lottery games and state-operated casino gaming, such as
table games.
     (e) For purposes of this section, "Twin River-Tiverton" shall mean Twin River-Tiverton,
LLC and/or the successor in interest thereto by reason of the acquisition of the stock, membership
interests, or substantially all of the assets of such entity.
     SECTION 2. Sections 42-61.2-1, 42-61.2-2, 42-61.2-2.1, 42-61.2-3.2, 42-61.2-7 and 42-
61.2-15 of the General Laws in Chapter 42-61.2 entitled "Video Lottery Terminal" are hereby
amended to read as follows:
     42-61.2-1. Definitions. -- For the purpose of this chapter, the following words shall
mean:
      (1) "Central communication system" means a system approved by the lottery division,
linking all video lottery machines at a licensee location to provide auditing program information
and any other information determined by the lottery. In addition, the central communications
system must provide all computer hardware and related software necessary for the establishment
and implementation of a comprehensive system as required by the division. The central
communications licensee may provide a maximum of fifty percent (50%) of the video lottery
terminals.
      (2) "Licensed, video-lottery retailer" means a pari-mutuel licensee specifically licensed
by the director subject to the approval of the division to become a licensed video lottery retailer.
      (3) "Net terminal income" means currency placed into a video lottery terminal less
credits redeemed for cash by players.
      (4) "Pari-mutuel licensee" means an entity licensed and authorized to conduct:
      (i) Dog racing, An entity licensed pursuant to chapter 3.1 of title 41 §41-3.1-3; and/or
      (ii) Jai-alai games, An entity licensed pursuant to chapter 7 of title 41 §41-7-3.
      (5) "Technology provider" means any individual, partnership, corporation, or association
that designs, manufactures, installs, maintains, distributes, or supplies video lottery machines or
associated equipment for the sale or use in this state.
      (6) "Video lottery games" means lottery games played on video lottery terminals
controlled by the lottery division.
      (7) "Video lottery terminal" means any electronic computerized video game machine
that, upon the insertion of cash or any other representation of value that has been approved by the
division of lotteries, is available to play a video game authorized by the lottery division, and that
uses a video display and microprocessors in which, by chance, the player may receive free games
or credits that can be redeemed for cash. The term does not include a machine that directly
dispenses coins, cash, or tokens.
      (8) "Casino gaming" means any and all table and casino-style games played with cards,
dice, or equipment, for money, credit, or any representative of value; including, but not limited to,
roulette, blackjack, big six, craps, poker, baccarat, paigow, any banking or percentage game, or
any other game of device included within the definition of Class III gaming as that term is
defined in Section 2703(8) of Title 25 of the United States Code and that is approved by the state
through the division of state lottery.
      (9) "Net, table-game revenue" means win from table games minus counterfeit currency.
      (10) "Rake" means a set fee or percentage of cash and chips representing cash wagered
in the playing of a nonbanking table game assessed by a table games retailer for providing the
services of a dealer, gaming table or location, to allow the play of any nonbanking table game.
      (11) "Table game" or "Table gaming" means that type of casino gaming in which table
games are played for cash or chips representing cash, or any other representation of value that has
been approved by the division of lotteries, using cards, dice, or equipment and conducted by one
or more live persons.
      (12) "Table-game retailer" means a retailer authorized to conduct table gaming pursuant
to §§ 42-61.2-2.1 and 42-61.2-2.2 or 42-61.2-2.3.
      (13) "Credit facilitator" means any employee of Twin River a licensed, video-lottery
retailer approved in writing by the division whose responsibility is to, among other things, review
applications for credit by players, verify information on credit applications, grant, deny, and
suspend credit, establish credit limits, increase and decrease credit limits, and maintain credit
files, all in accordance with this chapter and rules and regulations approved by the division.
      (14) "Newport Grand" means Newport Grand, LLC, a Rhode Island limited-liability
company, successor to Newport Grand Jai Alai, LLC, and each permitted successor to and
assignee of Newport Grand, LLC under the Newport Grand Master Contract, including, but not
limited to, Premier Entertainment II, LLC and/or Twin River-Tiverton, LLC, provided it is a pari-
mutuel licensee as defined in § 42-61.2-1 et seq.; provided, further, however, where the context
indicates that the term is referring to the physical facility, then it shall mean the gaming and
entertainment facility located at 150 Admiral Kalbfus Road, Newport, Rhode Island.
      (15) "Newport Grand Marketing Year" means each fiscal year of the state or a portion
thereof between November 23, 2010, and the termination date of the Newport Grand Master
Contract.
      (16) "Newport Grand Master Contract" means that certain master video lottery terminal
contract made as of November 23, 2005, by and between the Division of Lotteries of the Rhode
Island Ddepartment of Aadministration and Newport Grand, as amended and extended from time
to time as authorized therein and/or as such Newport Grand Master Contract may be assigned as
permitted therein.
     (17) "Premier" means Premier Entertainment II, LLC and/or its successor in interest by
reason of the acquisition of the stock, membership interests, or substantially all of the assets of
such entity.
     (18) "Twin River-Tiverton" means Twin River-Tiverton, LLC and/or its successor in
interest by reason of the acquisition of the stock, membership interests, or substantially all of the
assets of such entity.
     42-61.2-2. Division of state lottery authorized to operate video lotteries. -- (a)
Notwithstanding the provisions of any other law, the division of state lottery is authorized to
conduct and control video lottery games under its authority.
      (b) Video lottery terminals may only be installed and operated at the facilities of pari-
mutuel licensee licensees facilities existing as of June 30, 1992, as defined in § 42-61.2-1(4),
which are specifically approved by the state lottery director, to be licensed video lottery retailers
according to rules and regulations set forth by the director. At any one time, there shall be no
more than two (2) pari-mutuel licensee facilities in which video lottery games are conducted, one
located in the town of Lincoln, and one located either in the city of Newport or in the town of
Tiverton.
      (c) Commencing July 1, 2005, the number of video lottery terminals to be installed at
pari-mutuel license facilities shall be established by the general assembly.
      (d) Pursuant to Article 6, section 15 of the Rhode Island Constitution R.I. Const.,
Art. VI, Sec. XV, the general assembly shall determine the type of lotteries conducted.
     42-61.2-2.1. State authorized to operate casino gaming. -- (a) State-operated casino
gaming shall be authorized at the facility of the licensed video lottery terminal retailer known as
"Twin River" located in the town of Lincoln; provided, that the requirements of Article VI,
Section 22 of the Rhode Island Constitution R.I. Const., Art. VI, Sec. XXII are met with
respect to said facility at the general election next held after enactment of this section.
      (1) With respect to the "Twin River" facility, the authorization of this section 2.1 shall be
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 Lincoln that qualified electors of the town
of Lincoln have approved the expansion of gambling at such facility to include casino gaming.
      (b) The general assembly finds that:
      (1) The operation of casino gaming at Twin River will play a critical role in the economy
of the state and enhance state and local revenues;
      (2) Pursuant to Article VI, Section 15 of the Rhode Island Constitution R.I. Const.,
Art. VI, Sec. XV 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 Twin River; and
      (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 R.I. Const., Art. VI, Sec. XV, the state is authorized to
operate, conduct, and control casino gaming at Twin River, subject to subsection (a) above. In
furtherance thereof, the state, through 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,
depositing, 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 Twin River collect casino
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 Twin River's accounting and finances to
allow for adequate oversight and verification of the financial aspects of casino gaming at the
facility, including, without limitation:
      (i) The right to require Twin River to maintain an annual balance sheet, profit-and-loss
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 Twin River's casino gaming operations are
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 Twin River;
      (8)(7) Establish compulsive gambling treatment programs;
      (9)(8) Promulgate, or propose for promulgation, any legislative, interpretive, and
procedural rules necessary for the successful implementation, administration, and enforcement of
this chapter; and
      (10)(9) 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 Rhode Island.
      (d) Subject to subsection (a) above, the state, through the division of state lottery and/or
the department of business regulation, may expand Twin River existing video lottery license
issued, or issue Twin River a new casino gaming license, to permit casino gaming to the extent
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 Rhode Island Constitution R.I. Const., Art. VI, Sec. XV. In accord
therewith, subject to subsection (a) above, 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 Rhode Island state police, through its gaming enforcement unit, shall have the
authority to monitor and investigate criminal violations related to casino gaming activities
consistent with chapter 42-61.3.
     (g) The state, through the department of revenue, division of state lottery, and/or the
department of business regulation, shall have approval rights over matters relating to the
employment of individuals to be involved, directly or indirectly, with the operation of casino
gaming at Twin River.
     42-61.2-3.2. Gaming credit authorized. -- (a) Authority. - In addition to the powers and
duties of the state lottery director under §§ 42-61-4, 42-61.2-3, 42-61.2-3.1 and 42-61.2-4, the
division shall authorize Twin River each licensed video lottery retailer to extend credit to players
pursuant to the terms and conditions of this chapter.
      (b) Credit. - Notwithstanding any provision of the general laws to the contrary,
including, without limitation, § 11-19-17, except for applicable licensing laws and regulations,
Twin River each licensed video lottery retailer may extend interest-free, unsecured credit to its
patrons for the sole purpose of such patrons making wagers at table games and/or video lottery
terminals at the Twin River licensed, video-lottery retailer's facility subject to the terms and
conditions of this chapter.
      (c) Regulations. - Within ninety (90) days of the effective date of this section, Twin
River Each licensed video lottery retailer shall be subject to submit to the division of lotteries, for
review and approval, proposed rules and regulations submitted by licensed, video-lottery retailers
and subject to the approval of the division of lotteries regarding the establishment of procedures
governing a program for the extension of credit and requirements with respect to a credit
applicant's financial fitness, including, without limitation,: annual income,; debt-to-income ratio,;
prior credit history,; average monthly bank balance; and/or level of play. The division of lotteries
may approve, approve with modification, or disapprove any portion of the policies and
procedures submitted for review and approval.
      (d) Credit applications. - Each applicant for credit shall submit a written application to
Twin River the licensed, video-lottery retailer that shall be maintained by Twin River the
licensed, video-lottery retailer for three (3) years in a confidential credit file. The application shall
include the patron's name; address; telephone number; social security number; comprehensive
bank account information; the requested credit limit; the patron's approximate amount of current
indebtedness; the amount and source of income in support of the application; the patron's
signature on the application; a certification of truthfulness; and any other information deemed
relevant by Twin River the licensed, video-lottery retailer or the division of lotteries.
      (e) Credit application verification. - As part of the review of a credit application and
before an application for credit is approved, Twin River the licensed, video-lottery retailer shall
verify:
      (1) The identity, creditworthiness, and indebtedness information of the applicant by
conducting a comprehensive review of:
      (i) The information submitted with the application;
      (ii) Indebtedness information regarding the applicant received from a credit bureau;
and/or
      (iii) Information regarding the applicant's credit activity at other licensed facilities that
Twin River the licensed, video-lottery retailer may obtain through a casino credit bureau and, if
appropriate, through direct contact with other casinos.
      (2) That the applicant's name is not included on an exclusion or self-exclusion list
maintained by Twin River the licensed, video-lottery retailer and/or the division of lotteries.
      (3) As part of the credit application, Twin River the licensed, video-lottery retailer shall
notify each applicant in advance that Twin River the licensed, video-lottery retailer will verify the
information in subsections (e)(1) and (e)(2) of this section and may verify any other information
provided by the applicant as part of the credit application. The applicant is required to
acknowledge in writing that he or she understands that the verification process will be conducted
as part of the application process and that he or she consents to having said verification process
conducted.
      (f) Establishment of credit. - After a review of the credit application, and upon
completion of the verification required under subsection (e) of this section, and subject to the
rules and regulations approved by the division of lotteries, a credit facilitator may approve or
deny an application for credit to a player. The credit facilitator shall establish a credit limit for
each patron to whom credit is granted. The approval or denial of credit shall be recorded in the
applicant's credit file that shall also include the information that was verified as part of the review
process, and the reasons and information relied on by the credit facilitator in approving or
denying the extension of credit and determining the credit limit. Subject to the rules and
regulations approved by the division of lotteries, increases to an individual's credit limit may be
approved by a credit facilitator upon receipt of written request from the player after a review of
updated financial information requested by the credit facilitator and re-verification of the player's
credit information.
      (g) Recordkeeping. - Detailed information pertaining to all transactions affecting an
individual's outstanding indebtedness to Twin River the licensed, video-lottery retailer shall be
recorded in chronological order in the individual's credit file. The financial information in an
application for credit and documents related thereto shall be confidential. All credit application
files shall be maintained by Twin River the licensed, video-lottery retailer in a secure manner and
shall not be accessible to anyone not a credit facilitator or a Twin River manager or officer of a
licensed, video-lottery retailer responsible for the oversight of the extension of credit program.
      (h) Reduction or suspension of credit. - A credit facilitator may reduce a player's credit
limit or suspend his or her credit to the extent permitted by the rules and regulations approved by
the division of lotteries and shall reduce a player's credit limit or suspend a player's credit limit as
required by said rules and regulations.
      (i) Voluntary credit suspension. - A player may request that Twin River the licensed,
video-lottery retailer suspend or reduce his or her credit. Upon receipt of a written request to do
so, the player's credit shall be reduced or suspended as requested. A copy of the request and the
action taken by the credit facilitator shall be placed in the player's credit application file.
      (j) Liability. - In the event that a player fails to repay a debt owed to Twin River a
licensed, video-lottery retailer resulting from the extension of credit by Twin River that licensed,
video-lottery retailer, neither the state of Rhode Island nor the division of lotteries shall be
responsible for the loss and said loss shall not affect net, table-game revenue or net terminal
income. Twin River A licensed, video-lottery retailer, the state of Rhode Island, the division of
lotteries, and/or any employee of Twin River a licensed, video-lottery retailer, shall not be liable
in any judicial or administrative proceeding to any player, any individual, or any other party,
including table game players or individuals on the voluntary suspension list, for any harm,
monetary or otherwise, that may arise as a result of:
      (1) Granting or denial of credit to a player;
      (2) Increasing the credit limit of a player;
      (3) Allowing a player to exercise his or her right to use credit as otherwise authorized;
      (4) Failure of Twin River the licensed, video-lottery retailer to increase a credit limit;
      (5) Failure of Twin River the licensed, video-lottery retailer to restore credit privileges
that have been suspended, whether involuntarily or at the request of the table game patron; or
      (6) Permitting or prohibiting an individual whose credit privileges have been suspended,
whether involuntarily or at the request of the player, to engage in gaming activity in a licensed
facility while on the voluntary credit suspension list.
      (k) Limitations. - Notwithstanding any other provision of this chapter, for any extensions
of credit, the maximum amount of outstanding credit per player shall be fifty thousand dollars
($50,000).
     42-61.2-7. Division of revenue. -- (a) Notwithstanding the provisions of § 42-61-15, the
allocation of net, terminal income derived from video lottery games is as follows:
      (1) For deposit in the general fund and to the state lottery division fund for
administrative purposes: Net, terminal income not otherwise disbursed in accordance with
subdivisions (a)(2) -- (a)(6) inclusive, or otherwise disbursed in accordance with subsections
(g)(2) and (h)(2);
      (i) Except for the fiscal year ending June 30, 2008, nineteen one hundredths of one
percent (0.19%), up to a maximum of twenty million dollars ($20,000,000), shall be equally
allocated to the distressed communities as defined in § 45-13-12 provided that no eligible
community shall receive more than twenty-five percent (25%) of that community's currently
enacted municipal budget as its share under this specific subsection. Distributions made under
this specific subsection are supplemental to all other distributions made under any portion of
general laws § 45-13-12. For the fiscal year ending June 30, 2008, distributions by community
shall be identical to the distributions made in the fiscal year ending June 30, 2007, and shall be
made from general appropriations. For the fiscal year ending June 30, 2009, the total state
distribution shall be the same total amount distributed in the fiscal year ending June 30, 2008, and
shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total
state distribution shall be the same total amount distributed in the fiscal year ending June 30,
2009, and shall be made from general appropriations, provided, however, that seven hundred
eighty-four thousand four hundred fifty-eight dollars ($784,458) of the total appropriation shall
be distributed equally to each qualifying distressed community. For each of the fiscal years
ending June 30, 2011, June 30, 2012, and June 30, 2013, seven hundred eighty-four thousand four
hundred fifty-eight dollars ($784,458) of the total appropriation shall be distributed equally to
each qualifying distressed community.
      (ii) Five one hundredths of one percent (0.05%), up to a maximum of five million dollars
($5,000,000), shall be appropriated to property tax relief to fully fund the provisions of § 44-33-
2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum
amount to the nearest five dollar ($5.00) increment within the allocation until a maximum credit
of five hundred dollars ($500) is obtained. In no event shall the exemption in any fiscal year be
less than the prior fiscal year.
      (iii) One and twenty-two one hundredths of one percent (1.22%) to fund § 44-34.1-1,
entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998", to the maximum
amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no event
shall the exemption in any fiscal year be less than the prior fiscal year.
      (iv) Except for the fiscal year ending June 30, 2008, ten one hundredths of one percent
(0.10%), to a maximum of ten million dollars ($10,000,000), for supplemental distribution to
communities not included in subsection (a)(1)(i) above distributed proportionately on the basis of
general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008,
distributions by community shall be identical to the distributions made in the fiscal year ending
June 30, 2007, and shall be made from general appropriations. For the fiscal year ending June 30,
2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010, and thereafter,
funding shall be determined by appropriation.
      (2) To the licensed, video-lottery retailer:
      (a) (i) Prior to the effective date of the Newport Grand Master Contract, Newport Grand
twenty-six percent (26%), minus three hundred eighty-four thousand nine hundred ninety-six
dollars ($384,996);
      (ii) On and after the effective date of the Newport Grand Master Contract, to the
licensed, video-lottery retailer who is a party to the Newport Grand Master Contract, all sums due
and payable under said Master Contract, minus three hundred eighty four thousand nine hundred
ninety-six dollars ($384,996).
      (iii) Effective July 1, 2013, the rate of net, terminal income payable to Newport Grand,
LLC under the licensed, video-lottery retailer who is a party to the Newport Grand master
contract Master Contract shall increase by two and one quarter percent (2.25%) points. The
increase herein shall sunset and expire on June 30, 2015, and the rate in effect as of June 30,
2013, shall be reinstated.
      (iv) (A) Effective July 1, 2015, the rate of net, terminal income payable to Newport
Grand, under the licensed, video-lottery retailer who is a party to the Newport Grand Master
Contract shall increase over the rate in effect as of June 30, 2013, by one and nine-tenths (1.9%)
(1.9) percentage points. (i.e., x% plus 1.9 percentage points equals (x + 1.9)%, where "x%" is the
current rate of net terminal income payable to the licensed, video-lottery retailer who is a party to
the Newport Grand Master Contract). The dollar amount of additional net, terminal income paid
to the licensed, video-lottery retailer who is a party to the Newport Grand Master Contract with
respect to any Newport Grand Marketing Year as a result of such increase in rate shall be referred
to as "Additional Newport Grand Marketing NTI."
      (B) The excess, if any, of Newport Grand's marketing expenditures incurred by the
licensed, video-lottery retailer who is a party to the Newport Grand Master Contract with respect
to a Newport Grand Marketing Year over one million four hundred thousand dollars ($1,400,000)
shall be referred to as the "Newport Grand Marketing Incremental Spend." Beginning with the
Newport Grand Marketing Year that starts on July 1, 2015, after the end of each Newport Grand
Marketing Year, Newport Grand the licensed, video-lottery retailer who is a party to the Newport
Grand Master Contract shall pay to the Division the amount, if any, by which the Additional
Newport Grand Marketing NTI for such Newport Grand Marketing Year exceeds the Newport
Grand Marketing Incremental Spend for such Newport Grand Marketing Year; provided
however, that Newport Grand's such video-lottery retailer's liability to the Division hereunder
with respect to any Newport Grand Marketing Year shall never exceed the Additional Newport
Grand Marketing NTI paid to Newport Grand such video-lottery retailer with respect to such
Newport Grand Marketing Year.
      The increase herein in subsection 2(a)(iv) shall sunset and expire on June 30, 2017, and
the rate in effect as of June 30, 2013 shall be reinstated.
      (b) (i) Prior to the effective date of the UTGR master contract, to the present, licensed,
video-lottery retailer at Lincoln Park, which is not a party to the UTGR, master contract, twenty-
eight and eighty-five one hundredths percent (28.85%), minus seven hundred sixty-seven
thousand six hundred eighty-seven dollars ($767,687);
      (ii) On and after the effective date of the UTGR master contract, to the licensed, video-
lottery retailer that is a party to the UTGR master contract, all sums due and payable under said
master contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars
($767,687).
      (3) (i) To the technology providers that are not a party to the GTECH Master Contract as
set forth and referenced in Public Law PL 2003, Chapter CH. 32, seven percent (7%) of the
net, terminal income of the provider's terminals; in addition thereto, technology providers that
provide premium or licensed proprietary content or those games that have unique characteristics,
such as 3D graphics; unique math/game play features; or merchandising elements to video-lottery
terminals; may receive incremental compensation, either in the form of a daily fee or as an
increased percentage, if all of the following criteria are met:
      (A) A licensed, video-lottery retailer has requested the placement of premium or licensed
proprietary content at its licensed, video-lottery facility;
      (B) The division of lottery has determined in its sole discretion that the request is likely
to increase net, terminal income or is otherwise important to preserve or enhance the
competiveness of the licensed, video-lottery retailer;
      (C) After approval of the request by the division of lottery, the total number of premium
or licensed, proprietary-content video-lottery terminals does not exceed ten percent (10%) of the
total number of video-lottery terminals authorized at the respective licensed, video-lottery
retailer; and
      (D) All incremental costs are shared between the division and the respective licensed,
video-lottery retailer based upon their proportionate allocation of net terminal income. The
division of lottery is hereby authorized to amend agreements with the licensed, video-lottery
retailers, or the technology providers, as applicable, to effect the intent herein.
      (ii) To contractors that are a party to the master contract as set forth and referenced in
Public Law PL 2003, Chapter CH. 32, all sums due and payable under said master contract; and
      (iii) Notwithstanding paragraphs (i) and (ii) above, there shall be subtracted
proportionately from the payments to technology providers the sum of six hundred twenty-eight
thousand seven hundred thirty-seven dollars ($628,737).
      (4) (A) Until video lottery games are no longer operated at the Newport Grand gaming
facility located in Newport, to To the city of Newport one and one hundredth percent (1.01%) of
net terminal income of authorized machines at Newport Grand, except that: effective
      (i) Effective November 9, 2009, until June 30, 2013, the allocation shall be one and two
tenths percent (1.2%) of net terminal income of authorized machines at Newport Grand for each
week the facility operates video lottery games on a twenty-four-hour (24) basis for all eligible
hours authorized; and
      (ii) Effective July 1, 2013, provided that the referendum measure authorized by Section 1
of Chapters 24 and 25 of the Public Laws of 2012 is approved statewide and in the City of
Newport, the allocation shall be one and forty-five hundredths percent (1.45%) of net terminal
income of authorized video lottery terminals at Newport Grand; and
     (B) Upon commencement of the operation of video-lottery games at Twin River-
Tiverton's facility located in the town of Tiverton, to the town of Tiverton one and forty-five
hundredths percent (1.45%) of net terminal income of authorized machines at the licensed video
lottery retailer's facility located in the town of Tiverton, subject to subsection (g)(2); and
     (B)(C) To the town of Lincoln, one and twenty-six hundredths percent (1.26%) of net
terminal income of authorized machines at Twin River except that;:
      (i) Effective November 9, 2009, until June 30, 2013, the allocation shall be one and
forty-five hundredths percent (1.45%) of net terminal income of authorized machines at Twin
River for each week video lottery games are offered on a twenty-four-hour (24) basis for all
eligible hours authorized; and
      (ii) Effective July 1, 2013, provided that the referendum measure authorized by Article
25, Chapter 151, Section 4 of the Public Laws of 2011 PL 2011, Ch. 151, Sec. 4, is approved
statewide and in the Town of Lincoln, the allocation shall be one and forty-five hundredths
percent (1.45%) of net terminal income of authorized video lottery terminals at Twin River,
subject to subsection (h)(2); and
      (5) To the Narragansett Indian Tribe, seventeen hundredths of one percent (0.17%) of net
terminal income of authorized machines at Lincoln Park, up to a maximum of ten million dollars
($10,000,000) per year, that shall be paid to the Narragansett Indian Tribe for the account of a
Tribal Development Fund to be used for the purpose of encouraging and promoting: home
ownership and improvement; elderly housing; adult vocational training; health and social
services; childcare; natural resource protection; and economic development consistent with state
law. Provided, however, such distribution shall terminate upon the opening of any gaming facility
in which the Narragansett Indians are entitled to any payments or other incentives; and provided,
further, any monies distributed hereunder shall not be used for, or spent on, previously contracted
debts; and
      (6) Unclaimed prizes and credits shall remit to the general fund of the state; and
      (7) Payments into the state's general fund specified in subdivisions subsections (a)(1)
and (a)(6) shall be made on an estimated monthly basis. Payment shall be made on the tenth day
following the close of the month except for the last month when payment shall be on the last
business day.
      (b) Notwithstanding the above, the amounts payable by the division to UTGR related to
the marketing program shall be paid on a frequency agreed by the division, but no less frequently
than annually.
      (c) Notwithstanding anything in this chapter 61.2 of this title to the contrary, the director
is authorized to fund the marketing program as described above in regard to the first amendment
to the UTGR master contract.
      (d) Notwithstanding the above, the amounts payable by the division to the licensed video
lottery retailer who is a party to the Newport Grand Master Contract related to the marketing
program shall be paid on a frequency agreed by the division, but no less frequently than annually.
      (e) Notwithstanding anything in this chapter 61.2 of this title to the contrary, the director
is authorized to fund the marketing program as described above in regard to the first amendment
to the Newport Grand master contract Master Contract.
      (f) Notwithstanding the provisions of § 42-61-15, but subject to §42-61.2-7(h), the
allocation of net, table-game revenue derived from table-games table games at Twin River is as
follows:
      (1) For deposit into the state lottery fund for administrative purposes and then the
balance remaining into the general fund:
      (i) Sixteen percent (16%) of net, table-game revenue, except as provided in § 42-61.2-
7(f)(1)(ii);
      (ii) An additional two percent (2%) of net, table-game revenue generated at Twin River
shall be allocated starting from the commencement of table games activities by such table-game
retailer and ending, with respect to such table-game retailer, on the first date that such table-game
retailer's net terminal income for a full state fiscal year is less than such table-game retailer's net
terminal income for the prior state fiscal year, at which point this additional allocation to the state
shall no longer apply to such table-game retailer.
      (2) To UTGR, net,, table-game revenue not otherwise disbursed pursuant to above
subsection (f)(1); provided, however, on the first date that such table-game retailer's net terminal
income for a full state fiscal year is less than such table-game retailer's net terminal income for
the prior state fiscal year, as set forth in subsection (f)(1)(ii) above, one percent (1%) of this net,
table-game revenue shall be allocated to the town of Lincoln for four (4), consecutive state fiscal
years.
     (g) Notwithstanding the provisions of § 42-61-15, the allocation of net, table-game
revenue derived from table games at Newport Grand is as follows:
     (1) For deposit into the state lottery fund for administrative purposes and then the balance
remaining into the general fund: eighteen percent (18%) of net, table-game revenue.
     (2) To Newport Grand LLC, net table-game revenue not otherwise disbursed pursuant to
subsection (g)(1) provided, however, on the first date that such table-game retailer's net terminal
income for a full state fiscal year is less than such table-game retailer's net terminal income for
the prior state fiscal year, one percent (1%) of this net, table-game revenue shall be allocated to
the city of Newport for four (4) consecutive state fiscal years. 
     (g) Notwithstanding the provisions of §42-61-15, the allocation of net, table-game
revenue derived from table games at the Tiverton facility owned by Twin River-Tiverton is as
follows:
     (1) Subject to subsection (g)(2) of this section, one percent (1%) of net, table-game
revenue shall be allocated to the town of Tiverton;
     (2) Fifteen and one-half percent (15.5%) of net, table-game revenue shall be allocated to
the state first for deposit into the state lottery fund for administrative purposes and then the
balance remaining into the general fund; provided however, that beginning with the first state
fiscal year that a facility in the town of Tiverton owned by Twin River-Tiverton offers patrons
video lottery games and table games for all of such state fiscal year, for that state fiscal year and
each subsequent state fiscal year that such Tiverton facility offers patrons video lottery games and
table games for all of such state fiscal year, if the town of Tiverton has not received an aggregate
of three million dollars ($3,000,000) in the state fiscal year from net, table-game revenues and net
terminal income, combined, generated by such Tiverton facility, then the state shall make up such
shortfall to the town of Tiverton out of the state's percentage of net, table-game revenue set forth
in this subsection (g)(2) and net terminal income set forth in subsubsections (a)(1) and (a)(6);
provided further however, if in any state fiscal year either video lottery games or table games are
no longer offered at a facility in the town of Tiverton owned by Twin River-Tiverton, LLC, then
the state shall not be obligated to make up the shortfall referenced in this subsection (g)(2); and
     (3) Net, table-game revenue not otherwise disbursed pursuant to subsections (g)(1) and
(g)(2) of this section shall be allocated to Twin River-Tiverton.
     (h) Notwithstanding the foregoing §42-61.2-7(f) and superseding that section effective
upon the first date that a facility in the town of Tiverton owned by Twin River-Tiverton offers
patrons video lottery games and table games, the allocation of net, table-game revenue derived
from table games at Twin River in Lincoln shall be as follows:
     (1) Subject to subsection (h)(2), one percent (1%) of net, table-game revenue shall be
allocated to the town of Lincoln;
     (2) Fifteen and one-half percent (15.5%) of net, table-game revenue shall be allocated to
the state first for deposit into the state lottery fund for administrative purposes and then the
balance remaining into the general fund; provided however, that beginning with the first state
fiscal year that a facility in the town of Tiverton owned by Twin River-Tiverton offers patrons
video lottery games and table games for all of such state fiscal year, for that state fiscal year and
each subsequent state fiscal year that such Tiverton facility offers patrons video lottery games and
table games for all of such state fiscal year, if the town of Lincoln has not received an aggregate
of three million dollars ($3,000,000) in the state fiscal year from net, table-game revenues and net
terminal income, combined, generated by the Twin River facility in Lincoln, then the state shall
make up such shortfall to the town of Lincoln out of the state's percentage of net, table-game
revenue set forth in this subsection (h)(2) and net terminal income set forth in subsections (a)(1)
and (a)(6); provided further however, if in any state fiscal year either video lottery games or table
games are no longer offered at a facility in the town of Tiverton owned by Twin River-Tiverton,
LLC, then the state shall not be obligated to make up the shortfall referenced in this subsection
(h)(2); and
     (3) Net, table-game revenue not otherwise disbursed pursuant to subsections (h)(1) and
(h)(2) shall be allocated to UTGR.
     42-61.2-15. Table game hours of operation. [See Applicability notes.]. -- To the extent
Ttable Ggames are authorized at Twin River the premises of a table game retailer, such Ttable
Ggames may be offered at Twin River the premises of a table game retailer for all or a portion of
the days and times that VLTs video lottery games are offered. To the extent Table Games are
authorized at Newport Grand, such Table Games may be offered at Newport Grand for all or a
portion of the days and times that VLTs are offered. 
     SECTION 3. Chapter 42-61.2 entitled "Video Lottery Terminal" is hereby amended by
adding thereto the following section:
     42-61.2-2.3. State authorized to operate casino gaming in Tiverton. -- (a) State-
operated casino gaming shall be authorized at the Tiverton facility of Twin River-Tiverton, a
licensed video lottery retailer, which facility is located in the town of Tiverton at the intersection
of William S. Canning Boulevard and Stafford Road, provided that the requirements of R.I.
Const., Art. VI, Sec. XXII are met with respect to said facility, namely that:
     (1) The secretary of state certifies that the qualified voters of the state have approved
authorizing a facility owned by Twin River-Tiverton located at the intersection of William S.
Canning Boulevard and Stafford Road in the town of Tiverton to be licensed as a pari-mutuel
facility and offer state-operated video lottery games and state-operated casino gaming, such as
table games;
     (2) The board of canvassers of the town of Tiverton certifies (or there is certified on its
behalf) that the qualified electors of the town of Tiverton have approved authorizing a facility
owned by Twin River-Tiverton and located at the intersection of William S. Canning Boulevard
and Stafford Road in the town of Tiverton to be licensed as a pari-mutuel facility and offer state-
operated video lottery games and state-operated casino gaming, such as table games; and
     (3) The department of business regulation, division of racing and athletics, issues to Twin
River-Tiverton a license as a pari-mutuel facility, and the department of revenue, state lottery
division issues to Twin River-Tiverton a license to offer state-operated video lottery games and a
license to offer state-operated casino gaming, such as table games.
     (b) With respect to the facility owned by Twin River-Tiverton located at the intersection
of William S. Canning Boulevard and Stafford Road in the town of Tiverton, the authorization of
this section shall be effective upon the requirements set forth in subsection (a) of this section
having been met with respect to such facility.
     (c) The general assembly finds that:
     (1) The operation of casino gaming in the town of Tiverton will play a critical role in the
economy of the state and enhance state and local revenues;
     (2) Replacing the state-operated gaming facility in the city of Newport with a state-
operated gaming facility in the town of Tiverton is desirable to maximize state and local
revenues;
     (3) Pursuant to R.I. Const., Art. VI, Sec. XV and the specific powers, authorities and
safeguards set forth in subsection (d) of this section in connection with the operation of casino
gaming, the state shall have full operational control over casino gaming at the specified location
in the town of Tiverton; and
     (4) It is in the best interest of the state to have the authorization to operate casino gaming
as specified in the town of Tiverton.
     (d) Notwithstanding the provisions of any other law and pursuant to R.I. Const., Art. VI,
Sec. XV, the state is authorized to operate, conduct and control casino gaming at the facility of
Twin River-Tiverton located in the town of Tiverton at the intersection of William S. Canning
Boulevard and Stafford Road, subject to the provisions of subsection (a). In furtherance thereof,
the state, through the division of state lottery, 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 Twin River-Tiverton collect
casino 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 Twin River-Tiverton's accounting and
finances to allow for adequate oversight and verification of the financial aspects of casino gaming
at the facility, including, without limitation:
     (i) The right to require Twin River-Tiverton to maintain an annual balance sheet, profit-
and-loss 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 Twin River-Tiverton's casino gaming activities are
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 Twin River-Tiverton 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) Establish compulsive gambling treatment programs;
     (8) Promulgate, or propose for promulgation, any legislative, interpretive, and procedural
rules necessary for the successful implementation, administration, and enforcement of this
chapter; and
     (9) 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 Rhode Island.
     (e) The state, through the department of revenue, division of state lottery, and/or the
department of business regulation, shall have approval rights over matters relating to the
employment of individuals to be involved, directly or indirectly, with the operation of casino
gaming in the town of Tiverton.
     (f) Subject to subsection (a), the state, through the division of state lottery, may issue
Twin River-Tiverton new video lottery and casino gaming licenses to permit video lottery and
casino gaming to the extent authorized by this chapter 61.2 of this title.
     (g) Subject to subsection (a), all rules and regulations shall be promulgated by the state,
through the division of state lottery, in accordance with the authority conferred upon the general
assembly pursuant to R.I. Const., Art. VI, Sec. XV. In accordance therewith, subject to
subsection (a), the state, through the division of state lottery, 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), (c) and (d).
     (h) The Rhode Island state police through its gaming enforcement unit shall have the
authority to monitor and investigate criminal violations related to casino gaming activities
consistent with chapter 61.3 of this title.
     (i) Notwithstanding any law or regulation to the contrary, Twin River-Tiverton shall not
commence video lottery or casino gaming activities prior to the completion, by the department of
transportation, of the already planned roundabout, DOT project #0103S, and funds for such
project shall be allocated such that the project is scheduled to be completed, and is completed, by
July 1, 2018.
     SECTION 4. Nothing in this act shall abrogate or diminish the powers of the state,
through the division of state lottery, to conduct and control video lottery terminals pursuant to
chapter 61.2 of title 42.
     SECTION 5. Pursuant to Article VI, Section 22 of the Rhode Island Constitution and
notwithstanding the provisions of §41-9-4:
     (a) The following question shall be submitted by the secretary of state to the qualified
electors of the state at the statewide general election to be held in November of 2016, and the
secretary of state shall certify the election results:
     "Shall an act be approved which would authorize a facility owned by Twin River-
Tiverton, LLC, located in the town of Tiverton at the intersection of William S. Canning
Boulevard and Stafford Road, to be licensed as a pari-mutuel facility and offer state-operated
video-lottery games and state-operated casino gaming, such as table games?''
     (b) The following question shall be submitted by the local board of canvassers to the
qualified electors of the town of Tiverton at the next statewide general election, and the local
board of canvassers of the town of Tiverton shall certify (or have certified on its behalf) to the
secretary of state the local election results of the electors voting in the town of Tiverton:
     "Shall an act be approved which would authorize a facility owned by Twin River-
Tiverton, LLC, located in the town of Tiverton at the intersection of William S. Canning
Boulevard and Stafford Road, to be licensed as a pari-mutuel facility and offer state-operated
video-lottery games and state-operated casino gaming, such as table games?''
     SECTION 6. The question set forth in Section 5(a) of this act to be submitted to the
qualified electors of the state relating to the expansion of gaming in Tiverton shall appear on the
ballots provided to the qualified electors of the state as the first referendum question. The
question set forth in Section 5(b) to be submitted to the qualified electors of the town of Tiverton
relating to the expansion of gaming in Tiverton shall appear on the ballots provided to the
qualified electors of the town of Tiverton as the first referendum question.
     SECTION 7. Authorization of Amendments to UTGR and Newport Grand Master
Contracts -- Purpose. The general assembly hereby finds that video-lottery games and casino
games are important sources of revenue for the state. The purpose of the following sections
relating to a potential new gaming facility in Tiverton and the cessation of gaming activity in
Newport is to help strengthen the commercial health of all gaming facilities in Rhode Island and
to protect and promote, for the people of the state, the public's share of revenues generated
thereby. It is the intent of the general assembly that this act, being necessary for the welfare of the
state and its citizens, shall be liberally construed so as to effectuate its purposes, including,
without limitation, the state's attempt to minimize specific commercial risks that threaten the
state's gaming facilities and the critical local and state revenue generated thereby.
     SECTION 8. Authorization of Amendments to UTGR and Newport Grand Master
Contracts -- Definitions. For the purposes of this act, the following terms shall have the following
meanings, and to the extent that such terms are defined in Chapter 16 of the Public Laws of 2010,
as amended, those terms are hereby amended as follows:
     (a) "Newport Grand" when it is referring to a legal entity, means Premier Entertainment
II. LLC and its permitted successors and assigns under the Newport Grand Master Contract.
''Newport Grand," when it is referring to a gaming facility, means Newport Grand Slots, located
at 150 Admiral Kalbfus Road, Newport, Rhode Island, unless and until state-operated video-
lottery games are no longer offered at such facility in Newport and state-operated video-lottery
games and table games are offered at a facility owned by Twin River-Tiverton located in
Tiverton, Rhode Island, at which time ''Newport Grand" shall mean such Tiverton facility.
     (b) "Newport Grand facility" means the gaming and entertainment facility located at 150
Admiral Kalbfus Road, Newport, Rhode Island; provided however, once video lottery games are
no longer offered at the facility in Newport and video-lottery games are offered at the gaming and
entertainment facility of Twin River-Tiverton located in the town of Tiverton, all references to
''Newport Grand facility" shall refer to such Tiverton facility.
     (c) "Twin River-Tiverton" means Twin River-Tiverton LLC, a Delaware Limited
Liability Company, being the successor to Newport Grand, LLC under the Newport Grand
Master Contract. References herein to "Twin River-Tiverton" shall include its permitted
successors and assigns under the Newport Grand Master Contract.
     SECTION 9. Authorization of Amendments to UTGR and Newport Grand Master
Contracts -- Incorporation of Prior Terms. -- Unless otherwise stated herein, and except to the
extent amended by this act, all definitions, conditions, provisions, and terms used in Chapter 16
of the public laws of 2010, entitled "An Act Relating to Authorizing the First Amendments to the
Master Video Lottery Terminal Contracts", as amended, are hereby incorporated herein by
reference and shall remain in full force and effect.
     SECTION 10. Authorized Procurement of Fifth Amendment to the Newport Grand
Master Video Lottery Terminal Contract.- Notwithstanding any provision of the general or public
laws or regulations adopted thereunder to the contrary, the division of state lottery is hereby
expressly authorized and directed to enter into with Newport Grand (which, by definition,
includes an assignee pursuant to an assignment effected pursuant to the Newport Grand Master
Video Lottery Contract) a Fifth Amendment to the Newport Grand Master Video Lottery
Terminal Contract for the following purposes and containing the following terms and conditions,
all of which shall be set forth in more particular detail in the Fifth Amendment:
     (a) All references to the facility located 150 Admiral Kalbfus Road, Newport, Rhode
Island shall refer to that facility until video-lottery games are no longer offered there and video-
lottery games are offered at a facility owned by Twin River-Tiverton, located in the town of
Tiverton, at which time they shall refer to such Tiverton facility.
     (b) Section 2.3 of the Newport Grand Master Video-Lottery Terminal Contract shall be
amended to grant the licensed video-lottery retailer that is a party to such contract the option to
extend the term of such contract for two (2) additional terms of five (5) years each (the
"Extension Terms"). The first of the new Extension Terms shall commence on November 23,
2020, and continue until November 22, 2025, and the second of the Extension Terms shall
commence on November 23, 2025 and continue until November 22, 2030. The exercise of the
option to extend for each of the Extension Terms shall be subject to the terms and conditions of
Section 2.3 of the Newport Grand Master Video-Lottery Terminal Contract.
     (c) A new section shall be added to the Newport Grand Master Video-Lottery Terminal
Contract to provide that, beginning on the date that a facility in the town of Tiverton owned by
Twin-River Tiverton, LLC offers patrons video-lottery games and table games, the licensed
video-lottery retailer that is a party to the Newport Grand Master Video-Lottery Contract shall be
entitled to receive eighty-three and one-half percent (83.5%) of the net, table-game revenue
generated at the facility defined herein as "Newport Grand."
     (d) A new section shall be added to the Newport Grand Master Video-Lottery Terminal
Contract to provide that, beginning on the date that the Tiverton facility owned by Twin River-
Tiverton offers patrons video-lottery games and table games, the town of Tiverton shall be
entitled to receive: (1) One and forty-five hundredths percent (1.45%) of net terminal income
from authorized video-lottery terminals at such facility; and (2) One percent (1%) of the net,
table-game revenue generated at such facility; provided however, that beginning with the first
state fiscal year that such Tiverton facility offers patrons video-lottery games and table games for
all of such state fiscal year, for that state fiscal year, and each subsequent state fiscal year that
such Tiverton facility offers patrons video-lottery games and table games for all of such state
fiscal year, if the town of Tiverton has not received an aggregate of three million dollars
($3,000,000) in the state fiscal year from net, table-game revenues and net terminal income,
combined, generated by such Tiverton facility, then the state shall make up such shortfall to the
town of Tiverton out of the state's percentage of net, table-game revenue and net terminal income
(so that the town of Tiverton receives, after accounting for the state make up of such shortfall, an
aggregate of three million dollars ($3,000,000) from net, table-game revenues and net terminal
income, combined, with respect to such state fiscal year); provided further, however, if in any
state fiscal year either video-lottery games or table games are no longer offered at such Tiverton
facility, then the state shall not be obligated to make up the shortfall referenced in this section.
The town of Tiverton shall be a signatory to the amended Newport Grand Master Video-Lottery
Terminal Contract with regard to this new section.
     (e) A new section shall be added to the Newport Grand Master Video-Lottery Terminal
Contract to provide that, after the date that video-lottery games and table games are offered to
patrons at the Tiverton facility owned by Twin River-Tiverton, if the Newport Grand Master
Video-Lottery Terminal Contract expires or otherwise terminates for any reason prior to the day
that would have been the last day of the Newport Grand Master Video-Lottery Terminal Contract
had all extension options been exercised and said extension terms continued until their natural
expiration (the "Last Possible Day of the Newport Grand Master Video Lottery Terminal
Contract"), then, notwithstanding such expiration or termination of the Newport Grand Master
Video-Lottery Terminal Contract, provided video lottery games and table games continue to be
offered at that Tiverton facility owned by Twin River-Tiverton, until the end of such Last
Possible Day of the Newport Grand Master Video Lottery Terminal Contract, the percentage of
net terminal income and the percentage of net, table-game revenue allocated to the town of
Tiverton shall continue to be the same percentage in each case, and shall continue to be subject to
the same three million dollar ($3,000,000) minimum annual guarantee, as set forth in the Newport
Grand Master Video-Lottery Terminal Contract, as amended by this Section 10. If video-lottery
games and table games are not both offered at that Tiverton facility owned by Twin River-
Tiverton, the aforementioned three million dollar ($3,000,000) annual guarantee to the town of
Tiverton shall no longer apply. Without affecting other provisions of the Newport Grand Master
Video Lottery Terminal Contract that continue in effect notwithstanding the expiration or earlier
termination thereof, the state and the town of Tiverton agree that this provision of the Newport
Grand Master Video-Lottery Terminal Contract amendment shall continue in effect
notwithstanding the expiration or earlier termination of the Newport Grand Master Video-Lottery
Terminal Contract. The town of Tiverton shall be a signatory to the amended Newport Grand
Master Video-Lottery Terminal Contract with regard to this new section.
     SECTION 11. Authorized Procurement of Fifth Amendment to the UTGR Master Video-
Lottery Terminal Contract.-- Notwithstanding any provision of the general or public laws or
regulations adopted thereunder to the contrary, the division of state lottery is hereby expressly
authorized and directed to enter into with UTGR a Fifth Amendment to the UTGR Master Video-
Lottery Terminal Contract for the following purposes and containing the following terms and
conditions, all of which shall be set forth in more particular detail in the Fifth Amendment:
     (a) Section 2.5 of the UTGR Master Video-Lottery Terminal Contract, shall be further
amended to grant UTGR the option to extend the term of the UTGR Master Video-Lottery
Terminal Contract for two (2) additional terms of five (5) years each (the "Extension Terms").
The first of the two (2) Extension Terms shall commence on July 18, 2020, and continue until
July 17, 2025, and the second of the new Extension Terms shall commence on July 18, 2025, and
continue until July 17, 2030. The exercise of the option to extend for each of the Extension Terms
shall be subject to the terms and conditions of Section 2.5 of the UTGR Master Video-Lottery
Terminal Contract.
     (b) A new section shall be added to the UTGR Master Video-Lottery Terminal Contract
to provide as follows: Beginning on the date that a facility in the town of Tiverton owned by
Twin River-Tiverton, LLC offers patrons video-lottery games and table games, UTGR shall be
entitled to receive eighty-three and one-half percent (83.5%) of the net, table-game revenue
generated at the Lincoln facility.
     (c) A new section shall be added to the UTGR Master Video Lottery Terminal Contract
to provide that the town of Lincoln shall be entitled to receive:
     (1) One and forty-five hundredths percent (1.45%) of net terminal income from
authorized machines at Twin River located in the town of Lincoln; and
     (2) That, beginning on the date that a facility in the town of Tiverton owned by Twin
River-Tiverton, LLC offers patrons video lottery games and table games, one percent (1%) of the
net, table-game revenue generated at Twin River in the town of Lincoln; provided however, that
beginning with the first state fiscal year that such Tiverton facility offers patrons video-lottery
games and table games for all of such state fiscal year, for that state fiscal year and each
subsequent state fiscal year that such Tiverton facility offers patrons video-lottery games and
table games for all of such state fiscal year, if the town of Lincoln has not received an aggregate
of three million dollars ($3,000,000) in the state fiscal year from net, table-game revenues and net
terminal income, combined, generated by the Twin River facility in the town of Lincoln, then the
state shall make up such shortfall to the town of Lincoln out of the state's percentage of net, table-
game revenue and net terminal income (so that the town of Lincoln receives, after accounting for
the state make-up of such shortfall, an aggregate of three million dollars ($3,000,000) from net,
table-game revenues and net terminal income, combined, with respect to such state fiscal year);
provided further however, if in any state fiscal year either video-lottery games or table games are
no longer offered at the Tiverton facility, then the state shall not be obligated to make up the
shortfall referenced in this section to the town of Lincoln. The town of Lincoln shall be a
signatory to the amended UTGR Master Video-Lottery Terminal Contract with regard to this new
section.
     (d) A new section shall be added to the UTGR Master Video-Lottery Terminal Contract
to provide that, after the date that video lottery games and table games are offered to patrons at
the Tiverton facility owned by Twin River-Tiverton, if the UTGR Master Video-Lottery Terminal
Contract expires or otherwise terminates for any reason prior to the day that would have been the
last day of the UTGR Master Video-Lottery Terminal Contract had all extension options been
exercised and said extension terms continued until their natural expiration (the "Last Possible Day
of the UTGR Master Video Lottery Terminal Contract"), then, notwithstanding such expiration or
termination of the UTGR Master Video-Lottery Terminal Contract, provided: (1) Video-lottery
games and table games continue to be offered at the Twin River facility owned by UTGR; and (2)
Video-lottery games and table games continue to be offered at the Tiverton facility owned by
Twin River-Tiverton, until the end of such Last Possible Day of the UTGR Master Video-Lottery
Terminal Contract, the percentage of net terminal income and the percentage of net, table-game
revenue allocated to the town of Lincoln shall continue to be the same percentage in each case,
and shall continue to be subject to the same three million dollar ($3,000,000) minimum annual
guarantee, as set forth in the UTGR Master Video-Lottery Terminal Contract, as amended by this
Section 11. If either of the aforementioned conditions (1) and (2) (or both) of this section no
longer applies, the aforementioned three million dollar ($3,000,000) minimum annual guarantee
to the town of Lincoln shall no longer apply. Without affecting other provisions of the UTGR
Master Video Lottery Terminal Contract that continue in effect notwithstanding the expiration or
earlier termination thereof, the state and the town of Lincoln agree that this provision of the
UTGR Master Video-Lottery Terminal Contract amendment shall continue in effect
notwithstanding the expiration or earlier termination of the UTGR Master Video-Lottery
Terminal Contract. The town of Lincoln shall be a signatory to the amended UTGR Master
Video-Lottery Terminal Contract with regard to this new section.
     SECTION 12. Section 41-9-4 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:
     41-9-4. Town and state election on establishment of facility. -- (a) Before a gambling
facility shall be established in any town or city, the town council of the town or the city council of
the city shall comply with the following procedure:
      (1) Upon receipt of a resolution from the town council of the town or the city council of
the city, for a referendum to establish a gambling facility and/or activity, the general assembly
shall determine, by passage of an act, whether to allow a referendum on the establishment of the
gambling facility and/or activity.
      (2) Upon passage of an act to allow a single referendum which shall be considered both a
statewide and a local referendum in accordance with Section 22 of Article 6 of the Constitution of
Rhode Island for the establishment of the gambling facility and/or activity, at the next general
election there shall be submitted to the qualified electors of the state, the following question:
"Shall a gambling facility and/or activity be established in the town (or city) of
__________________?"
     (b) The question shall be submitted by the secretary of state to the qualified electors of
the state at the same general election and the secretary of state shall certify the statewide election
results, and the local board of canvassers of the city or town where the establishment of a
gambling facility or activity is proposed, is authorized and directed to certify the local election
results of the electors voting in the city or town on the referendum question, to the secretary of
state.
     (c) The affirmative vote of the subject town or city and the electors of the state shall be
necessary for the approval of the question, and if consent be thus given, all rules and regulations
shall be promulgated in accordance with the authority conferred upon the general assembly in R.I.
Const., Art. VI, Sec. XV.
     (2) Upon passage of an act to allow a referendum for the establishment of the gambling
facility and/or activity, the town council of the town or the city council of the city shall pose, by
adopting a resolution to be placed on the ballot at the next general election to be submitted to the
qualified electors of the town or city and to the qualified electors of the state, the following
question: "Shall a gambling facility and/or activity be established in the town (or city) of
___________ ?"
     (b) The question shall be submitted by the local board of canvassers to the electors of the
town or city where the facility or activity is to be located, and the results of the election shall be
certified to the secretary of state.
     (c) The question shall be submitted by the secretary of state to the qualified electors of
the state at the same general election and the secretary of state shall certify the election results.
     (d) The affirmative vote of the subject town or city and the electors of the state shall be
necessary for the approval of the question, and if consent be thus given, all rules and regulations
shall be promulgated in accordance with the authority conferred upon the general assembly in R.I.
Const., Art. VI, Sec. XV.
     SECTION 13. This Section 13, and Sections 5, 6 and 12 of this act shall take effect upon
passage of the act. All other sections of this act shall take effect immediately upon, but only if,
the requirements of R.I. Const., Art. VI, Sec. XXII are met, namely:
     (i) The certification by the secretary of state that the qualified voters of the state have
approved authorizing a facility owned by Twin River-Tiverton, LLC and located at the
intersection of William S. Canning Boulevard and Stafford Road in the town of Tiverton to be
licensed as a pari-mutuel facility and offer state-operated, video-lottery games and state-operated
casino gaming, such as table games; and
     (ii) The certification by (including on behalf of) the board of canvassers of the town of
Tiverton that qualified electors of the town of Tiverton have approved authorizing a facility
owned by Twin River-Tiverton, LLC and located at the intersection of William S. Canning
Boulevard and Stafford Road in the town of Tiverton to be licensed as a pari-mutuel facility and
offer state-operated, video-lottery games and state-operated casino gaming, such as table games.
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LC003790/SUB A
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