2019 -- H 6068

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LC002498

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - VIDEO - LOTTERY GAMES,

TABLE GAMES AND SPORTS WAGERING

     Introduced By: Representative K. Joseph Shekarchi

     Date Introduced: May 03, 2019

     Referred To: House Finance

     (by request)

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 42-61.2-2.1, 42-61.2-2.3 and 42-61.2-3.2 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:

     42-61.2-2.1. 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 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 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 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.;

     (5) It is imperative that legislative action be taken to preserve and protect the state's

ability to maximize revenues at the Twin River Casino in an increasingly competitive gaming

market by expanding critical revenue-driving programs;

     (6) The extension of credit to casino gaming and video lottery players (collectively,

"players" or "patrons") is a vital customer service function that facilitates a gaming program's

long-term success;

     (7) While preserving and protecting the state's ability to maximize revenues in the

competitive gaming market is imperative to the financial well-being of the state, the general

assembly also recognizes the need to balance that concern with the financial well-being and

safety of its citizens;

     (8) While gaming and gambling can be a healthy source of recreation and entertainment

enjoyed by many people, the general assembly must ensure that persons who obtain a line of

credit from, or at, a state-operated gaming facility or casino are financially sound and financially

capable of entering into agreements for a line of credit. Accordingly, pursuant to § 42-61.2-3.2,

the general assembly authorized the establishment of a program for the extension of credit to

players at the Twin River Casino pursuant to the terms and conditions thereof and the rules and

regulations submitted by the Twin River Casino and approved and promulgated by the division of

lotteries; and

     (9) It is the intent of the general assembly to increase the limit on the amount of the line

of credit that may be provided to an individual patron by, or at, a state-operated gaming facility or

casino.

     (c) 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 Twin River,

subject to 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

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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) 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.

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     (d) Subject to subsection (a), the state, through the division of state lottery, 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), 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 accord 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) 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.

     42-61.2-2.3. 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 gaming and athletics licensing,

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

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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.;

     (5) It is imperative that legislative action be taken to preserve and protect the state's

ability to maximize revenues at the Tiverton Casino in an increasingly competitive gaming

market by expanding critical revenue-driving programs;

     (6) The extension of credit to casino gaming and video lottery players (collectively,

"players" or "patrons") is a vital customer service function that facilitates a gaming program's

long-term success;

     (7) While preserving and protecting the state's ability to maximize revenues in the

competitive gaming market is imperative to the financial well-being of the state, the general

assembly also recognizes the need to balance that concern with the financial well-being and

safety of its citizens;

     (8) While gaming and gambling can be a healthy source of recreation and entertainment

enjoyed by many people, the general assembly must ensure that persons who obtain a line of

credit from, or at, a state-operated gaming facility or casino are financially sound and financially

capable of entering into agreements for a line of credit. Accordingly, pursuant to § 42-61.2-3.2,

the general assembly authorized the establishment of a program for the extension of credit to

players at the Tiverton Casino pursuant to the terms and conditions thereof and the rules and

regulations submitted by the Tiverton Casino and approved and promulgated by the division of

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lotteries; and

     (9) It is the intent of the general assembly to increase the limit on the amount of the line

of credit that may be provided to an individual patron by, or at, a state-operated gaming facility or

casino.

     (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,

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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.

     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 each licensed, video-

lottery retailer to extend credit to players pursuant to the terms and conditions of this chapter.

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     (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, 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 and/or for

the purpose of making sports wagering bets, at the licensed, video-lottery retailer's facility subject

to the terms and conditions of this chapter.

     (c) Regulations. Each licensed, video-lottery retailer shall be subject to rules and

regulations submitted by licensed, video-lottery retailers and subject to the approval of the

division of lotteries regarding procedures governing 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 the

licensed, video-lottery retailer that shall be maintained by 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 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, 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

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 the licensed, video-lottery retailer and/or the division of lotteries.

     (3) As part of the credit application, the licensed, video-lottery retailer shall notify each

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applicant in advance that the licensed, video-lottery retailer will verify the information in

subsections (e)(1) and (e)(2) 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), 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 a 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 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 the licensed, video-lottery retailer in a secure manner and shall not be accessible to

anyone not a credit facilitator or a 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 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 a licensed, video-

lottery retailer resulting from the extension of credit by that licensed, video-lottery retailer,

neither the state of Rhode Island nor the division of lotteries shall be responsible for the loss and

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said loss shall not affect net, table-game revenue or net terminal income. A licensed, video-lottery

retailer, the state of Rhode Island, the division of lotteries, and/or any employee of 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 the licensed, video-lottery retailer to increase a credit limit;

     (5) Failure of 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 by a licensed video-lottery retailer, the maximum amount of outstanding credit per

player shall be fifty thousand dollars ($50,000) one hundred thousand dollars ($100,000).

     SECTION 2. This act shall take effect upon passage.

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LC002498

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - VIDEO - LOTTERY GAMES,

TABLE GAMES AND SPORTS WAGERING

***

     This act would provide that Twin River Casino and Tiverton Casino may extend credit of

up to one hundred thousand dollars ($100,000) per player.

     This act would take effect upon passage.

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LC002498

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