Title 42
State Affairs and Government

Chapter 61.2
Video Lottery Games, Table Games and Sports Wagering

§ 42-61.2-1. Definitions.

For the purpose of this chapter, the following words shall mean:

(1) “2017 Budget Act” means 2017 — H 5175 Substitute A, as amended, entitled “An Act Relating to Making Appropriations for the Support of the State for the Fiscal Year ending June 30, 2018,” which Act was signed into law by the Governor of Rhode Island on August 3, 2017.

(2) “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 or 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.

(3) “Central communication system” means a system approved by the Division, linking all Video Lottery Terminals at a licensed video lottery retailer location to provide auditing program information and any other information determined by the Division. 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.

(4) “Collegiate sports or athletic event” means a sporting event offered or sponsored by or played in connection with, a public or private institution that offers educational services beyond the secondary level, but 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 unless such contest or event is part of a collegiate tournament.

(5) “Collegiate tournament” means a series of collegiate sports or athletic events involving four (4) or more collegiate teams that make up a single unit of competition.

(6) “Consolidated promotional points program” means, collectively, the “Initial Promotional Points Program” and the “Supplementary Promotional Points Program” applicable to the Lincoln gaming facility and the “Initial Promotional Points Program” and the “Supplementary Promotional Points Program” applicable to the Tiverton gaming facility, with each of the terms “Initial Promotional Points Program” and “Supplementary Promotional Points Program” having the meanings given such terms in the 2017 Budget Act.

(7) “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.

(8) “DBR” means the department of business regulation, division of gaming and athletics licensing, and any successor in interest thereto.

(9) “Director” means the director of the Division.

(10) “Division” means the state lottery division of the department of revenue and/or any successor in interest thereto.

(11) “Hosting facility” refers to the Lincoln gaming facility and the Tiverton gaming facility.

(12)(i) “iGaming” means casino gaming, inclusive of online slot games and online table games as defined herein, and made available to players who have reached twenty-one (21) years of age through the use of the 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.

(ii) All wagers on iGaming games shall be deemed to be placed and accepted, and iGaming games shall be deemed to be operated on the Division’s behalf, at the premises of a hosting facility.

(iii) Notwithstanding the foregoing, the term “iGaming” does not include the following:

(A) Sports wagering conducted under § 42-61.2-2.4;

(B) Online sports wagering conducted under § 42-61.2-2.4 and regulated elsewhere pursuant to the general laws, including in § 42-61.2-16;

(C) 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;

(D) Off-track betting on racing events, as regulated elsewhere pursuant to the general laws, including in chapter 10 of title 41;

(E) 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; and

(F) 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.

(13) “iGaming game vendor” means any entity authorized to provide online slot games and online table games, as approved by the Division in connection with iGaming, on the Division’s behalf in accordance with this chapter, such online slot games and online table games being games owned or licensed by the iGaming game vendor (or by an entity controlling, controlled by, or under common control with such entity) or games owned or licensed by a third party, that (in either case) are licensed to the iGaming game vendor for sublicense to the Division as authorized by the Division.

(14) “iGaming platform vendor” means an entity that operates a hosting facility (or by an entity controlling, controlled by, or under common control with such an entity) and that is authorized by the Division to conduct iGaming on the Division’s behalf in accordance with this chapter.

(15) “IGT” means IGT Global Solutions Corporation, a Delaware corporation.

(16) “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.

(17) “Lincoln gaming facility” means the gaming and entertainment facility located at 100 Twin River Road in the town of Lincoln, Rhode Island (sometimes referred to as “Twin River” or the “Twin River gaming facility”).

(18) “Marketing Year” means the fiscal year of the state.

(19) “Net table-game revenue” means win from table games minus counterfeit currency.

(20) “Net terminal income” means currency placed into a Video Lottery Terminal less credits redeemed for cash by players.

(21) “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, without limitation, Premier (as defined in subsection (33) of this section) and/or Twin River-Tiverton (as defined in subsection (48) of this section) provided it is a pari-mutuel licensee (as defined in this section); 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.

(22) “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.

(23) “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.

(24) “Online gaming account” means an account opened by a patron that such patron shall use for the deposit and withdrawal of funds used for online sports wagering, iGaming, or both. An online gaming account may be used for both online sports wagering conducted under § 42-61.2-2.4 and iGaming, only if the patron is over twenty-one (21) years of age. A patron under the age of twenty-one (21) is prohibited from having or using an online gaming account for iGaming.

(25) “Online slot game” means an online slot-machine-like game authorized by the Division within the scope of the term iGaming. Online slot games include, but are not limited to, online games involving digital versions of spinning reels or pay lines, and may include:

(i) An auto play feature;

(ii) An adjustable bet feature;

(iii) A random number generator to determine the game outcome; and

(iv) Games that can be played infinitely, using a nondepleting prize pool, offer prizes that are all available with every play, and have odds that remain the same with every play.

(26) “Online slot gaming revenue” means:

(i) The total of cash or cash equivalents received from the operation of online slot games minus the total of:

(A) Cash or cash equivalents paid to players as a result of the operation of online slot games;

(B) Marketing expenses related to online slot games as agreed to by the Division, the iGaming game vendor, and the iGaming platform vendor, as approved by the Division; and

(C) Any federal excise taxes (if applicable).

(ii) The term does not include any of the following:

(A) Counterfeit cash;

(B) Coins or currency of other countries received as a result of the operation of online slot games, except to the extent that the coins or currency are readily convertible to cash;

(C) Cash taken in a fraudulent act perpetrated against the iGaming platform vendor or iGaming game vendor, for which the iGaming platform vendor or iGaming game vendor is not reimbursed;

(D) Free play provided by the iGaming platform vendor or iGaming game vendor as authorized by the Division to a player and subsequently “won back” by the iGaming platform vendor or iGaming game vendor, for which the iGaming platform vendor or iGaming game vendor can demonstrate that it or its affiliate has not been reimbursed in cash.

(27) “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 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 such hosting facility.

(28) “Online sports-wagering revenue” means:

(i) The total of cash or cash equivalents received from online sports wagering minus the total of:

(A) Cash or cash equivalents paid to players as a result of online sports wagering;

(B) 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; and

(C) Any federal excise taxes (if applicable).

(ii) The term does not include any of the following:

(A) Counterfeit cash.

(B) 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.

(C) 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.

(D) Free play provided by the hosting facility or sports-wagering vendor as authorized by the Division 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.

(29) “Online table game” means a casino-style table game authorized by the Division within the scope of the term iGaming, where such games are conducted by one or more live persons and made available to players through use of the 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 and played with the digital representation of cards, dice, or equipment.

(30) “Online table gaming revenue” means:

(i) The total of cash or cash equivalents received from the operation of online table games minus the total of:

(A) Cash or cash equivalents paid to players as a result of the operation of online table games;

(B) Marketing expenses related to online table games as agreed to by the Division and the iGaming platform vendor, as approved by the Division; and

(C) Any federal excise taxes (if applicable).

(ii) The term does not include any of the following:

(A) Counterfeit cash;

(B) Coins or currency of other countries received as a result of the operation of online table games, except to the extent that the coins or currency are readily convertible to cash;

(C) Cash taken in a fraudulent act perpetrated against the iGaming platform vendor or iGaming game vendor for which the iGaming platform vendor or iGaming game vendor is not reimbursed;

(D) Free play provided by the iGaming platform vendor or iGaming game vendor as authorized by the Division to a player and subsequently “won back” by the iGaming platform vendor or iGaming game vendor, for which the iGaming platform vendor or iGaming game vendor can demonstrate that it or its affiliate has not been reimbursed in cash.

(31) “Pari-mutuel licensee” means:

(i) An entity licensed pursuant to § 41-3.1-3; and

(ii) An entity licensed pursuant to § 41-7-3.

(32) “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.

(33) “Premier” means Premier Entertainment II, LLC and its successor in interest by reason of the acquisition of the stock, membership interests, or substantially all of the assets of such entity.

(34) “Prior marketing year,” means, with respect to a marketing year, the most recent previous marketing year during which the Division operated a majority of the authorized video lottery games at each of the Lincoln gaming facility and the Tiverton gaming facility for at least 360 days (or 361 days in the case there are 366 days in such marketing year). For the avoidance of doubt, because the Division will not have operated a majority of the authorized video lottery games at the Lincoln gaming facility and at the Tiverton gaming facility for at least 361 days during the marketing year expiring on June 30, 2020, the prior marketing year with respect to the marketing year expiring on June 30, 2021, shall be the marketing year expiring on June 30, 2019.

(35) “Promotional points” has the meaning given such term in the 2017 Budget Act.

(36) “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.

(37) “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 and/or iGaming wagers (as applicable).

(38) “Sporting event” means any professional sport or athletic event, any Olympic or international sports competition event, any collegiate sport or athletic event, and any other event authorized by the division 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 “sporting event” shall not include:

(i) The individual performance statistics of athletes in a collegiate sports or athletic event which is part of a collegiate tournament:

(A) That takes place in Rhode Island; or

(B) In which any Rhode Island college team participates regardless of where the event takes place; or

(ii) Any other prohibited sporting event as determined by the division.

(39) “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, as of 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.

(vi) iGaming (as defined in this section).

(40) “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.

(41) “Sports-wagering revenue” means:

(i) The total of cash or cash equivalents received from sports wagering minus the total of:

(A) Cash or cash equivalents paid to players as a result of sports wagering;

(B) The annual flat fee to the host communities as defined by § 42-61.2-5(c);

(C) 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; and

(D) Any federal excise taxes (if applicable).

(ii) The term does not include any of the following:

(A) Counterfeit cash.

(B) 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.

(C) 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.

(D) Free play provided by the hosting facility or sports-wagering vendor as authorized by the Division 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.

(42) “Sports-wagering vendor” means any entity authorized by the Division to operate sports betting on the Division’s behalf in accordance with this chapter.

(43) “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, using cards, dice, or equipment and conducted by one or more live persons.

(44) “Table-game retailer” means a retailer authorized to conduct table gaming pursuant to § 42-61.2-2.1 or § 42-61.2-2.3.

(45) “Technology provider” means any individual, partnership, corporation, or association that designs, manufactures, installs, maintains, distributes, or supplies Video Lottery Terminals or associated equipment for the sale or use in this state.

(46) “Tiverton gaming facility” means the gaming and entertainment facility located at the intersection of William S. Canning Boulevard and Stafford Road in the town of Tiverton, Rhode Island (sometimes referred to as “Twin River-Tiverton”).

(47) “Twin River” (sometimes referred to as “UTGR”) means UTGR, Inc., a Delaware corporation, and each permitted successor to and assignee of UTGR, Inc.; provided, however, where the context indicates that the term is referring to a physical facility, then “Twin River” shall mean the Lincoln gaming facility.

(48) “Twin River-Tiverton” means Twin River-Tiverton, LLC and its successor in interest by reason of the acquisition of the stock, membership interests, or substantially all of the assets of such entity; provided, however, where the context indicates that the term is referring to a physical facility, then “Twin River-Tiverton” shall mean the Tiverton gaming facility.

(49) “Twin River-Tiverton Marketing Year” has the same meaning as Marketing Year (as defined in subsection (18) of this section).

(50) “Twin River-Tiverton Master Contract” has the same meaning as Newport Grand Master Contract (as defined in subsection (23) of this section).

(51) “UTGR Master Contract” means that certain master video lottery terminal contract made as of July 1, 2005, by and between the division of lotteries of the Rhode Island department of administration (now the division of lotteries of the Rhode Island department of revenue) and Twin River, as amended and extended from time to time as authorized therein and as such UTGR Master Contract may be assigned as permitted therein.

(52) “Video Lottery Agreement” means that certain Video Lottery Central Computer System Agreement dated as of December 20, 2001, by and between IGT and the Division, as amended, extended, assigned, and assumed from time to time.

(53) “Video lottery games” means lottery games played on Video Lottery Terminals controlled by the Division.

(54) “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, is available to play a video game authorized by the 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.

(55) “VLT Agreement” means that certain Video Lottery Terminal Technology Provider License Agreement dated as of September 28, 2000, by and between IGT and the Division, as amended, extended, assigned, and assumed from time to time.