Rhode Island-Based Company Pushes for iGaming Bill
Online gaming advocates in the United States have long focused on larger states for igaming growth. California was the focus of online poker efforts for well over a decade, with other populous states like New York and Illinois high on the priority list. Those states, however, have failed to legalize any type of online casino games or poker. In fact, most advocates wrote off California many years ago.
It isn’t lost on said igaming supporters, though, that the small state of Delaware was one of the first three states to enter the new US igaming market after Black Friday. Other states in that area of the country, like New Jersey and Pennsylvania, are in the mix as well.
Rhode Island may not be a hotbed for casinos and gambling, but it is open to it. People in the state can gamble on the lottery and participate in pari-mutuel wagering, for example.
RI was also one of the first states to legalize sports betting in 2018. It has grown significantly in the last few years, with January 2023 revenue alone exceeding $5.1M, of which the state counts $2.6M as revenue for Rhode Island.
Bally’s Speaks Up
Rhode Island lawmakers have not put forth a substantial igaming bill since first discussing something of the sort in 2014. However, Bally’s Corporation wants to change that. It helps that the gambling company is based in Providence, Rhode Island.
Bally’s operates more than a dozen casinos around the United States and operates igaming, most prominently sports betting, also in more than a dozen states. And it wants to run internet gaming in its home state.
Instead of trying to make lawmakers understand enough about igaming to write a bill – or wait for them to do it – Bally’s is going to do it. The company is going to write a bill to legalize online gaming and give it to lawmakers with a request to pass it.
While there is no copy of the legislation available yet, local news outlets reported that online slots will be taxed at 51% and table games at 18%, generating approximately $210M in gaming taxes for Rhode Island in the next five years.
Forming Bonds
A gaming company like Bally’s already ahs relationships with lawmakers in Rhode Island. However, its executives have already met with some of them, notably Senate President Dominick Ruggierio, to discuss the upcoming proposal.
Ruggierio is clearly just getting acquainted with the issue. “I am totally unfamiliar with igaming or e-gaming, as it’s called, but I think it provides a convenience for the public,” he said in mid-February.
Bally’s spokesperson Elizabeth Suever clarified that the submission will be modeled after the current online sports betting law. It will give the state full regulatory control over the industry, and the state will receive the tax revenue that they want.
The company told the crowd that a study it commissioned from Spectrum Gaming projects $210 million in tax revenue over the first five years. However, it seems to assume a Pennsylvania-like market (adjusted for population) when Delaware might be a better comparison.
— Bonus.com (@BonusUpdate) February 16, 2023
While there is no language revealed yet, the current news about the bill makes no mention of online poker. However, Bally’s is well aware of the potential for online poker, especially if the state allows entrance into the Multi-State Internet Gaming Agreement (MSIGA). Shared online poker player pools have great potential in the still-burgeoning United States market.
Last year, I asked senate president and speaker of house in Rhode Island about legalizing online gambling, in light of Bally's expansion & acquisition of online casino company. They were completely uninterested at the time. It should be interesting. And will this include poker? https://t.co/90C1Bg6tLX
— Marc Larocque (@LaRockObama) February 15, 2023
Timeline Open
There is always some sense of urgency with legislation, but Rhode Island’s legislative session is open much longer than most. The session doesn’t close until the end of June.
Meanwhile, lawmakers were out for some of February for a recess. They just returned on February 28. It is likely that Bally’s will submit its proposal through at least one influential lawmakers in March.
Meanwhile, there are bills pertaining to gambling that other lawmakers have introduced.
The State Senate is considering an amendment to change some of the current sports wagering law to better define collegiate sports and athletic events upon which residents can bet. There is another one seeking to prohibit the use of facial recognition technology in video lottery terminals (VLTs) and another bill wants to address smoking in pari-mutuel wagering facilities.
The Assembly is trying to change the state regarding the Rhode Island lottery and its proceeds to put some keno revenue into a special account to fund causes benefiting veterans. There is also a House bill to address smoking as in the Senate, as well as some lottery changes.
Social Gaming Bill
There is an interesting bill – HB5295 – that entered the Assembly’s House Judiciary Committee in early February. It will “allow social gaming in private residences and in public taverns or private clubs.” The caveat is that the games must result from a “bona fide social relationship” between participants, who are also denied anything of value in winnings.
A February 10 committee hearing led to the committee recommending the bill be held for further study.
