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Will Online Poker Sites Launch in Rhode Island?

Written by Jennifer Newell
Last updated on
Jennifer Newell

A funny thing happened while the World Series of Poker was running its course in Las Vegas. While the poker community was playing, watching, or following the WSOP and all of the tournament series this summer, lawmakers in the little state of Rhode Island legalized online poker.

In fact, the law passed in partnership with Bally’s Corporation to legalize igaming, which includes poker, casino table games, and slots to be offered through the state’s two land-based casinos – Twin River and Tiverton – owned by Bally’s.

While any progress for online poker – and even igaming – can be celebrated as a step toward more online poker in the United States market, the likelihood of online poker becoming a reality is low at this time.

Let’s explain.

A Bally’s Corporation Production

Rhode Island lawmakers have not been concerned with igaming. The last year that the state was even a possibility for legalizing online poker and other forms of gambling online was in 2014. But it wasn’t until 2023 that there was an actual bill to consider.

Discussions began in early 2023, courtesy of Bally’s Corporation, which owns Rhode Island’s two land-based casinos. It appears that Bally’s Tiverton does not have a poker room. Bally’s Twin River in Lincoln does have a poker room, but it is small. Poker Atlas shows that it does have eight tables and offers No Limit Hold’em cash games, mostly at the $1/$2 and $2/$5 levels. There are no tournaments listed. Needless to say, poker is not a money-maker for Bally’s, but gaming is, and the one company runs all of it in Rhode Island. (Bally’s is also based in Providence, Rhode Island.)

Early in the year, Bally’s actually wrote a bill to legalize online gaming. They gave it to lawmakers with a request to pass it. The hope was that the new industry could generate more than $200M in taxes over the next five years.

Ahead of a meeting between lawmakers and Bally’s, Rhode Island Senate President Dominick Ruggerio admitted that he was “totally unfamiliar with igaming or e-gaming” but was willing to talk about it, as it would provide “a convenience for the public.”

Sports Betting Success

However, Ruggerio and other lawmakers had trusted Bally’s with sports betting.

In fact, Rhode Island was one of the first states to legalize sports betting in 2018, just months after the United States Supreme Court overturned PASPA (the 1992 Professional and Amateur Sports Protection Act). And by November of 2018, betting was open in the state’s two casinos. Early retail sports wagering success prompted the legislature to legalize online sports betting in 2019. While Bally’s operated the two retail betting locations, the Rhode Island Lottery took charge of the online component.

The first year of full online and live sports betting was 2020, and revenue was good. January 2020 showed nearly $3.3M in revenue from almost $27M in bets, and that generated more than $1.6M for the state. Betting fluctuated with sports betting seasons, evident in the best months of October and November that year when the state collected $2.2M and $3.2M, respectively, in taxes.

From the launch of sports betting through June 2023, the numbers via LegalSportsReport show:

-$1.7 billion in handle

-$152.4 million in revenue

-$77.7 million paid in taxes

If Bally’s could show more revenue on top of sports betting, lawmakers were more than willing to take a look at the proposal.

Busy June

Members of the Rhode Island state legislature caught on quickly. From not knowing much about igaming in February, a number of lawmakers were ready to sponsor bills by April. Companion bills made their way to the introduction stage of the House and Senate at the end of that month. House Bill 6348 and Senate Bill 948 were on the books, with Ruggerio as one of the Senate bill sponsors.

The title was catchy: “An act relating to state affairs and government – video lottery games, table games, and sports wagering.” The title also clarified that it “legalizes igaming” and would be effective on April 1, 2024.

The bills were recommended for further study in May. In many states that consider igaming bills, that is the signal of their death. Further consideration usually means lawmakers are not ready to do it.

Then came June. The Senate bill moved first, put on the schedule for consideration on June 2. A few changes prompted committee recommendation, and the Senate passed the amended bill on June 8

-June 2:  SB.948 put on the schedule for consideration.

-June 6:  Committee makes changes and recommends SB.948 for Senate passage.

-June 8:  Senate passes SB.948.

-June 11:  House considers SB.948/HB.6348 and proposes more changes.

-June 15:  House passes amended proposal.

-June 15:  Senate passes amended proposal in concurrence.

-June 15:  Governor Dan McKee received final proposal.

-June 20:  Governor McKee signs igaming into law.

New iGaming Law Details

One of the most important components of the new law is that Bally’s Corporation (or its designated affiliate) is the only company authorized to provide igaming. The State Lottery Division of the Department of Revenue will oversee the activities.

Bally’s will pay the lottery 100% of the first $1M as a payment, along with 50% of anything between $1M and $2M.

Where it gets complicated is in the games listed as legal per this new law. It notes “online slot games and online table games.” Further in the document, casino gaming is defined as:

“All table and casino-style games played with cards, dice, or equipment, for money, credit, or any representative of value; including but not limited to: roulette, blackjack, big six, craps, poker, baccarat, paigow, any banking or percentage game, or any other game or device included within the definition of Class III gaming…”

However, a few paragraphs later, the law defines igaming as “casino gaming, inclusive of online slot games and online table games.”

There are conflicting interpretations of the bill’s allowance (or lack thereof) for online poker. One interpretation is that the detailed language of the bill relegates Bally’s to providing only live-dealer table games, which cannot include traditional peer-to-peer online poker.

Another reading of it, however, notes that there is a provision that allows for Bally’s to work with affiliates and enter into interactive gaming agreements with other states to offer games not under the live-dealer umbrella.

Either way, the bill will take effect on March 1, 2024. When the state’s lottery division is able to develop its igaming framework in greater detail, the future of online poker may become clearer.

Importantly, the online poker community in Rhode Island will likely be small. This may prevent any online poker operator from partnering with Bally’s to offer the game in Rhode Island, just as no operators have applied for licenses in other small states like Connecticut and West Virginia. If state-sanctioned online poker does reach Rhode Island, it will likely be years into the future.

 

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