Chapter 008 |
2019 -- H 5241 SUBSTITUTE A Enacted 03/25/2019 |
A N A C T |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO-LOTTERY GAMES, TABLE GAMES AND SPORTS WAGERING |
Introduced By: Representatives Mattiello, Shekarchi, Slater, Morin, and O'Brien |
Date Introduced: January 31, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. Sections 42-61.2-1, 42-61.2-3.3, 42-61.2-4, 42-61.2-5 and 42-61.2-15 of the |
General Laws in Chapter 42-61.2 entitled "Video-Lottery Games, Table Games and Sports |
Wagering" are hereby amended to read as follows: |
42-61.2-1. Definitions. |
For the purpose of this chapter, the following words shall mean: |
(1) "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. |
(2) "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. |
(3) "Collegiate sports or athletic event" shall not include a collegiate sports contest or |
collegiate athletic event that takes place in Rhode Island or a sports contest or athletic event in |
which any Rhode Island college team participates regardless of where the event takes place. |
(4) "Credit facilitator" means any employee of a licensed, video-lottery retailer approved |
in writing by the division whose responsibility is to, among other things, review applications for |
credit by players, verify information on credit applications, grant, deny, and suspend credit, |
establish credit limits, increase and decrease credit limits, and maintain credit files, all in |
accordance with this chapter and rules and regulations approved by the division. |
(5) "DBR" means the department of business regulation, division of gaming and athletics |
licensing, and/or any successor in interest thereto. |
(6) "Director" means the director of the division. |
(7) "Division", "division of lottery", "division of lotteries", or "lottery division" means |
the division of lotteries within the department of revenue and/or any successor in interest thereto. |
(8) "Hosting facility" refers to Twin River and the Tiverton gaming facility. |
(9) "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. |
(10) "Net, table-game revenue" means win from table games minus counterfeit currency. |
(11) "Net terminal income" means currency placed into a video-lottery terminal less |
credits redeemed for cash by players. |
(12) "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. |
(13) "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. |
(14) "Newport Grand Master Contract" means that certain master video-lottery terminal |
contract made as of November 23, 2005, by and between the division of lotteries of the Rhode |
Island department of administration and Newport Grand, as amended and extended from time to |
time as authorized therein and/or as such Newport Grand Master Contract may be assigned as |
permitted therein. |
(15) "Online gaming account" means an account established at a hosting facility and |
opened by a patron in person on the premises of a hosting facility that a patron shall use for the |
deposit and withdrawal of funds used for online sports wagering. |
(16) "Online sports wagering" means engaging in the act of sports wagering by the |
placing of wagers on sporting events or a combination of sporting events, or on the individual |
performance statistics of athletes in a sporting event or a combination of sporting events, over the |
Internet internet through computers, mobile applications on mobile devices or other interactive |
devices approved by the division, which wagers are accepted by a server-based gaming system |
located at the premises of a hosting facility authorized to accept sports wagers and administer |
payoffs of winning sports wagers; all such wagers shall be deemed to be placed and accepted at |
the premises of a hosting facility. |
(17) "Online sports-wagering revenue" means: |
(i) The total of cash or cash equivalents received from online sports wagering minus the |
total of: |
(I) Cash or cash equivalents paid to players as a result of online sports wagering; |
(II) Marketing expenses related to online sports wagering as agreed to by the division, the |
sports-wagering vendor, and the host facilities, as approved by the division of the lottery; and |
(III) Any federal excise taxes (if applicable). |
(ii) The term does not include any of the following: |
(I) Counterfeit cash. |
(II) Coins or currency of other countries received as a result of online sports wagering, |
except to the extent that the coins or currency are readily convertible to cash. |
(III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports- |
wagering vendor for which the hosting facility or sports-wagering vendor is not reimbursed. |
(IV) Free play provided by the hosting facility or sports-wagering vendor as authorized |
by the division of lottery to a player and subsequently "won back" by the hosting facility or |
sports-wagering vendor, for which the hosting facility or sports-wagering vendor can demonstrate |
that it or its affiliate has not been reimbursed in cash. |
(15)(18) "Pari-mutuel licensee" means: |
(i) An entity licensed pursuant to § 41-3.1-3; and/or |
(ii) An entity licensed pursuant to § 41-7-3. |
(16)(19) "Payoff", when used in connection with sports wagering, means cash or cash |
equivalents paid to a player as a result of the player's winning a sports wager. A "payoff" is a type |
of "prize", as the term "prize" is used in chapters 61, 61.2, and 61.3 of this title. |
(17)(20) "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)(21) "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. |
(22) "Server-based gaming system" means all hardware, software, and communications |
devices that comprise a system utilized for the purpose of offering an electronic platform used in |
connection with the process of placing and accepting sports wagers. |
(19)(23) "Sporting event" means any professional sport or athletic event, any Olympic or |
international sports competition event, and any collegiate sport or athletic event, or any portion |
thereof, including, but not limited to, the individual performance statistics of athletes in a sports |
event or combination of sports events, except "sports event" shall not include a prohibited sports |
event. |
(20)(24) "Sports wagering" means the business of accepting wagers on sporting events or |
a combination of sporting events, or on the individual performance statistics of athletes in a |
sporting event or combination of sporting events, by any system or method of wagering. The term |
includes, but is not limited to, exchange wagering, parlays, over-under, moneyline, pools, and |
straight bets, and the term includes the placement of such bets and wagers. However, the term |
does not include, without limitation, the following: |
(i) Lotteries, including video-lottery games and other types of casino gaming operated by |
the state, through the division, on the date this act is enacted [June 22, 2018]. |
(ii) Pari-mutuel betting on the outcome of thoroughbred or harness horse racing, or |
greyhound dog racing, including but not limited to, pari-mutuel wagering on a race that is |
"simulcast" (as defined in § 41-11-1), as regulated elsewhere pursuant to the general laws, |
including in chapters 3, 3.1, 4, and 11 of title 41. |
(iii) Off-track betting on racing events, as regulated elsewhere pursuant to the general |
laws, including in chapter 10 of title 41. |
(iv) Wagering on the respective scores or points of the game of jai alai or pelota and the |
sale of pari-mutuel pools related to such games, as regulated elsewhere pursuant to the general |
laws, including in chapter 7 of title 41. |
(v) Lotteries, charitable gaming, games of chance, bingo games, raffles, and pull-tab |
lottery tickets, to the extent permitted and regulated pursuant to chapter 19 of title 11. |
(21)(25) "Sports-wagering device" means any mechanical, electrical, or computerized |
contrivance, terminal, machine, or other device, apparatus, equipment, or supplies approved by |
the division and used to conduct sports wagering. |
(22)(26) "Sports-wagering revenue" means: |
(i) The total of cash or cash equivalents received from sports wagering minus the total of: |
(I) Cash or cash equivalents paid to players as a result of sports wagering; |
(II) The annual flat fee to the host communities as defined by § 42-61.2-5(c); |
(III) Marketing expenses related to sports wagering as agreed to by the division, the |
sports-wagering vendor, and the host facilities, as approved by the division of the lottery; and |
(IV) Any federal excise taxes (if applicable). |
(ii) The term does not include any of the following: |
(I) Counterfeit cash. |
(II) Coins or currency of other countries received as a result of sports wagering, except to |
the extent that the coins or currency are readily convertible to cash. |
(III) Cash taken in a fraudulent act perpetrated against a hosting facility or sports- |
wagering vendor for which the hosting facility or sports-wagering vendor is not reimbursed. |
(IV) Free play provided by the hosting facility or sports-wagering vendor as authorized |
by the division of lottery to a patron and subsequently "won back" by the hosting facility or |
sports-wagering vendor, for which the hosting facility or sports-wagering vendor can demonstrate |
that it or its affiliate has not been reimbursed in cash. |
(23)(27) "Sports-wagering vendor" means any entity authorized by the division of lottery |
to operate sports betting on the division's behalf in accordance with this chapter. |
(24)(28) "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. |
(25)(29) "Table-game retailer" means a retailer authorized to conduct table gaming |
pursuant to §§ 42-61.2-2.1 or § 42-61.2-2.3. |
(26)(30) "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. |
(27)(31) "Tiverton gaming facility" (sometimes referred to as "Twin River-Tiverton") |
means the gaming and entertainment facility located in the town of Tiverton at the intersection of |
William S. Canning Boulevard and Stafford Road. |
(28)(32) "Twin River" (sometimes referred to as "UTGR") means UTGR, Inc., a |
Delaware corporation, and each permitted successor to and assignee of UTGR, Inc.; provided |
further, however, where the context indicates that the term is referring to a physical facility, then |
"Twin River" or "Twin River gaming facility" shall mean the gaming and entertainment facility |
located at 100 Twin River Road in Lincoln, Rhode Island. |
(29)(33) "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. |
(30)(34) "Video-lottery games" means lottery games played on video-lottery terminals |
controlled by the lottery division. |
(31)(35) "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. |
42-61.2-3.3. Sports wagering regulation. |
(a) In addition to the powers and duties of the division director under §§ 42-61-4, 42- |
61.2-3, 42-61.2-4 and 42-61.2-3.1, and pursuant to § 42-61.2-2.4, the division director shall |
promulgate rules and regulations relating to sports wagering and set policy therefor. These rules |
and regulations shall establish standards and procedures for sports wagering and associated |
devices, equipment, and accessories, and shall include, but not be limited to: |
(1) Approve standards, rules, and regulations to govern the conduct of sports wagering |
and the system of wagering associated with sports wagering, including without limitation: |
(i) The objects of the sports wagering (i.e., the sporting events upon which sports- |
wagering bets may be accepted) and methods of play, including what constitutes win, loss, or tie |
bets; |
(ii) The manner in which sports-wagering bets are received, payoffs are remitted, and |
point spreads, lines, and odds are determined for each type of available sports wagering bet; |
(iii) Physical characteristics of any devices, equipment, and accessories related to sports |
wagering; |
(iv) The applicable inspection procedures for any devices, equipment, and accessories |
related to sports wagering; |
(v) Procedures for the collection of bets and payoffs, including but not limited to, |
requirements for internal revenue service purposes; |
(vi) Procedures for handling suspected cheating and sports-wagering irregularities; and |
(vii) Procedures for handling any defective or malfunctioning devices, equipment, and |
accessories related to sports wagering; |
(viii) Procedures for investigation of patron complaints related to sports wagering; |
(ix) Terms and conditions for online sports wagering; |
(x) Internal controls for all aspects of online sports wagering, including procedures for |
system integrity, system security, operations, accounting, and reporting of problem gamblers; |
(xi) Operational controls for server-based gaming systems, software, and hardware |
utilized for online sports wagering, including, but not limited to, appearance, functionality, |
contents, collection, storage, and retention of data and security; and |
(xii) Operational controls for online gaming accounts, including, but not limited to, |
procedures for the establishment and closure of an online gaming account, funding of withdrawal |
of funds from an online gaming account, and generation of an account statement for a patron's |
online gaming account.; |
(2) Establishing the method for calculating sports-wagering revenue and online sports- |
wagering revenue and standards for the daily counting and recording of cash and cash equivalents |
received in the conduct of sports wagering, and ensuring that internal controls are followed and |
financial books and records are maintained and audits are conducted; |
(3) Establishing the number and type of sports-wagering bets authorized at the hosting |
facility, including any new sports-wagering bets or variations or composites of approved sports- |
wagering bets, and all rules related thereto; |
(4) Establishing any sports-wagering rule changes, sports-wagering minimum and |
maximum bet changes, and changes to the types of sports-wagering products offered at a |
particular hosting facility, including but not limited to, any new sports-wagering bets or variations |
or composites of approved sports-wagering bets, and including all rules related thereto; |
(5) Requiring the hosting facility and/or sports-wagering vendor to: |
(i) Provide written information at each sports-wagering location within the hosting |
facility about wagering rules, payoffs on winning sports wagers, and written information |
prominently displayed on any electronic platform available to the player through a server-based |
gaming system and other information as the division may require; |
(ii) Provide specifications approved by the division to integrate and update the hosting |
facility's surveillance system to cover all areas within the hosting facility where sports wagering |
is conducted and other areas as required by the division. The specifications shall include |
provisions providing the division and other persons authorized by the division with onsite access |
to the system; |
(iii) Designate one or more locations within the hosting facility where sports-wagering |
bets are received; |
(iv) Ensure that visibility in a hosting facility is not obstructed in any way that could |
interfere with the ability of the division, the hosting facility, or other persons authorized under |
this section or by the division to oversee the surveillance of the conduct of sports wagering; |
(v) Ensure that the count rooms for sports wagering have appropriate security for the |
counting and storage of cash; |
(vi) Ensure that drop boxes are brought into or removed from an area where sports |
wagering is conducted or locked or unlocked in accordance with procedures established by the |
division; |
(vii) Designate secure locations for the inspection, service, repair, or storage of sports- |
wagering equipment and for employee training and instruction to be approved by the division; |
(viii) Establish standards prohibiting persons under eighteen (18) years of age from |
participating in sports wagering; |
(ix) Establish compulsive and problem gambling standards and/or programs pertaining to |
sports wagering consistent with this chapter; |
(6) Establishing the minimal proficiency requirements for those individuals accepting |
sports wagers and administering payoffs on winning sports wagers. The foregoing requirements |
of this subsection may be in addition to any rules or regulations of the DBR requiring licensing of |
personnel of state-operated gaming facilities; |
(7) Establish appropriate eligibility requirements and standards for traditional sports- |
wagering equipment suppliers; and |
(8) Any other matters necessary for conducting sports wagering. |
(b) The hosting facility shall provide secure, segregated facilities as required by the |
division on the premises for the exclusive use of the division staff and the gaming enforcement |
unit of the state police. The space shall be located proximate to the gaming floor and shall include |
surveillance equipment, monitors with full camera control capability, as well as other office |
equipment that may be deemed necessary by the division. The location and size of the space and |
necessary equipment shall be subject to the approval of the division. |
42-61.2-4. Additional powers and duties of director and lottery division. |
In addition to the powers and duties set forth in §§ 42-61-4 and 42-61.2-3, the director |
shall have the power to: |
(1) Supervise and administer the operation of video lottery games and sports wagering in |
accordance with this chapter and with the rules and regulations of the division; |
(2) Suspend or revoke upon a hearing any license issued pursuant to this chapter or the |
rules and regulations promulgated under this chapter; |
(3) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the |
operation of a central communications system and technology providers, or any part thereof; |
(4) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the |
provision of sports-wagering systems, facilities, and related technology necessary and/or |
desirable for the state-operated sports wagering to be hosted at Twin River and the Tiverton |
gaming facilities, including technology related to the operation of on-premises remote sports |
wagering, or any part thereof; and |
(5) In compliance with the provisions of chapter 2 of title 37, enter into contracts for the |
provision of server-based gaming systems, facilities, and related technology necessary and/or |
desirable for the state-operated online sports wagering; and |
(5)(6) Certify monthly to the budget officer, the auditor general, the permanent joint |
committee on state lottery, and to the governor a full and complete statement of lottery revenues, |
prize disbursements, and other expenses for the preceding month; ensure that monthly financial |
reports are prepared providing gross monthly revenues, prize disbursements, other expenses, and |
net income for keno and for all other lottery operations; submit this report to the state budget |
officer, the auditor general, the permanent joint committee on state lottery, the legislative fiscal |
advisors, and the governor no later than the twentieth business day following the close of the |
month; at the end of each fiscal year the director shall submit an annual report based upon an |
accrual system of accounting which that shall include a full and complete statement of lottery |
revenues, prize disbursements, and expenses, to the governor and the general assembly, which |
report shall be a public document and shall be filed with the secretary of state. The monthly report |
shall be prepared in a manner prescribed by the members of the revenue estimating conference. |
42-61.2-5. Allocation of sports-wagering revenue. Allocation of sports-wagering and |
online sports wagering revenue. |
(a) Notwithstanding the provisions of § 42-61-15, the division of lottery is authorized to |
enter into an agreement, limited to in-person on-site sports wagering, to allocate sports-wagering |
revenue derived from sports wagering and online sports wagering at the Twin River and Tiverton |
gaming facilities (the hosting facilities) between the state, the state's authorized sports-wagering |
vendor, and the host facilities. The allocation of sports-wagering revenue and online sports- |
wagering revenue shall be: |
(1) To the state, fifty-one percent (51%) of sports-wagering revenue and online sports- |
wagering revenue; |
(2) To the state's authorized sports-wagering vendor, thirty-two percent (32%) of sports- |
wagering revenue and online sports-wagering revenue; and |
(3) To the host facilities, seventeen percent (17%) of sports-wagering revenue and online |
sports-wagering revenue. |
(b) Sports-wagering revenue and online sports-wagering revenue allocated to the state |
shall be deposited into the state lottery fund for administrative purposes and then the balance |
remaining into the general fund. |
(c) The town of Lincoln shall be paid an annual flat fee of one hundred thousand dollars |
($100,000) and the town of Tiverton shall be paid an annual flat fee of one hundred thousand |
dollars ($100,000) in compensation for serving as the host communities for sports wagering. |
42-61.2-15. Table game and sports-wagering hours of operation. |
(a) To the extent table games are authorized at the premises of a table-game retailer, such |
table games may be offered at the premises of a table-game retailer for all or a portion of the days |
and times that video-lottery games are offered. |
(b) To the extent sports wagering is authorized at the premises of a table-game retailer, |
such sports wagering may be offered at the premises of such table-game retailer for all or a |
portion of the days and times that video-lottery games are offered. |
(c) To the extent online sports wagering is authorized at a hosting facility, such online |
sports wagering may be offered without any restriction on hours of operation and shall not be |
limited by the days and times that video-lottery games and/or table games are offered. |
SECTION 2. Chapter 42-61.2 of the General Laws entitled "Video-Lottery Games, Table |
Games and Sports Wagering" is hereby amended by adding thereto the following section: |
42-61.2-16. General requirements for online sports wagering. |
(a) Online sports wagering shall only occur within the state of Rhode Island. A hosting |
facility shall only accept online wagers from players that who have been affirmatively located as |
being physically present in the state of Rhode Island at the time of their wager. |
(b) The server-based gaming system shall employ a mechanism to detect the physical |
location of a player when the player logs onto the system and as frequently as specified in any |
regulations promulgated by the state, through the division. If the system detects that the physical |
location of the patron is in an area outside the state of Rhode Island, the system shall not accept |
that patron's wagers until such time as the patron is in the state of Rhode Island. |
(c) The server-based gaming system and all hardware, software, and other technology or |
equipment located on a hosting facility's premises and used to conduct online sports wagering |
shall be located in a restricted area on the hosting facility's premises. |
(d) Online sports wagering shall only be engaged in by patrons who have established an |
online gaming account in person on the premises of a hosting facility. |
SECTION 3. This act shall take effect upon passage. |
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LC001189/SUB A |
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