2024 -- S 3040 | |
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LC005887 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO LOTTERY GAMES, | |
TABLE GAMES AND SPORTS WAGERING | |
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Introduced By: Senators Ciccone, and Ruggerio | |
Date Introduced: May 02, 2024 | |
Referred To: Senate Special Legislation and Veterans Affairs | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 42-61.2-3.2 of the General Laws in Chapter 42-61.2 entitled "Video |
2 | Lottery Games, Table Games and Sports Wagering" is hereby amended to read as follows: |
3 | 42-61.2-3.2. Gaming credit authorized. |
4 | (a) Authority. In addition to the powers and duties of the state lottery director under §§ 42- |
5 | 61-4, 42-61.2-3, 42-61.2-3.1 and 42-61.2-4, the division shall authorize each licensed video lottery |
6 | retailer to extend credit to players pursuant to the terms and conditions of this chapter. |
7 | (b) Credit. Notwithstanding any provision of the general laws to the contrary, including, |
8 | without limitation, § 11-19-17, except for applicable licensing laws and regulations, each licensed |
9 | video lottery retailer may extend interest-free, unsecured credit to its patrons for the sole purpose |
10 | of such patrons making wagers at table games and/or video lottery terminals and/or for the purpose |
11 | of making sports wagering bets, at the licensed video lottery retailer’s facility subject to the terms |
12 | and conditions of this chapter. |
13 | (c) Regulations. Each licensed video lottery retailer shall be subject to rules and regulations |
14 | submitted by licensed video lottery retailers and subject to the approval of the division of lotteries |
15 | regarding procedures governing the extension of credit and requirements with respect to a credit |
16 | applicant’s financial fitness, including, without limitation: annual income; debt-to-income ratio; |
17 | prior credit history; average monthly bank balance; and/or level of play. The division of lotteries |
18 | may approve, approve with modification, or disapprove any portion of the policies and procedures |
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1 | submitted for review and approval. |
2 | (d) Credit applications. Each applicant for credit shall submit a written application to the |
3 | licensed video lottery retailer that shall be maintained by the licensed video lottery retailer for three |
4 | (3) years in a confidential credit file. The application shall include the patron’s name; address; |
5 | telephone number; social security number; comprehensive bank account information; the requested |
6 | credit limit; the patron’s approximate amount of current indebtedness; the amount and source of |
7 | income in support of the application; the patron’s signature on the application; a certification of |
8 | truthfulness; and any other information deemed relevant by the licensed video lottery retailer or the |
9 | division of lotteries. |
10 | (e) Credit application verification. As part of the review of a credit application and before |
11 | an application for credit is approved, the licensed video lottery retailer shall verify: |
12 | (1) The identity, creditworthiness, and indebtedness information of the applicant by |
13 | conducting a comprehensive review of: |
14 | (i) The information submitted with the application; |
15 | (ii) Indebtedness information regarding the applicant received from a credit bureau; and/or |
16 | (iii) Information regarding the applicant’s credit activity at other licensed facilities that the |
17 | licensed video lottery retailer may obtain through a casino credit bureau and, if appropriate, through |
18 | direct contact with other casinos. |
19 | (2) That the applicant’s name is not included on an exclusion or self-exclusion list |
20 | maintained by the licensed video lottery retailer and/or the division of lotteries. |
21 | (3) As part of the credit application, the licensed video lottery retailer shall notify each |
22 | applicant in advance that the licensed video lottery retailer will verify the information in |
23 | subsections (e)(1) and (e)(2) and may verify any other information provided by the applicant as |
24 | part of the credit application. The applicant is required to acknowledge in writing that he or she |
25 | understands that the verification process will be conducted as part of the application process and |
26 | that he or she consents to having said verification process conducted. |
27 | (f) Establishment of credit. After a review of the credit application, and upon completion |
28 | of the verification required under subsection (e), and subject to the rules and regulations approved |
29 | by the division of lotteries, a credit facilitator may approve or deny an application for credit to a |
30 | player. The credit facilitator shall establish a credit limit for each patron to whom credit is granted. |
31 | The approval or denial of credit shall be recorded in the applicant’s credit file that shall also include |
32 | the information that was verified as part of the review process, and the reasons and information |
33 | relied on by the credit facilitator in approving or denying the extension of credit and determining |
34 | the credit limit. Subject to the rules and regulations approved by the division of lotteries, increases |
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1 | to an individual’s credit limit may be approved by a credit facilitator upon receipt of a written |
2 | request from the player after a review of updated financial information requested by the credit |
3 | facilitator and re-verification of the player’s credit information. |
4 | (g) Recordkeeping. Detailed information pertaining to all transactions affecting an |
5 | individual’s outstanding indebtedness to the licensed video lottery retailer shall be recorded in |
6 | chronological order in the individual’s credit file. The financial information in an application for |
7 | credit and documents related thereto shall be confidential. All credit application files shall be |
8 | maintained by the licensed video lottery retailer in a secure manner and shall not be accessible to |
9 | anyone not a credit facilitator or a manager or officer of a licensed video lottery retailer responsible |
10 | for the oversight of the extension of credit program. |
11 | (h) Reduction or suspension of credit. A credit facilitator may reduce a player’s credit limit |
12 | or suspend his or her credit to the extent permitted by the rules and regulations approved by the |
13 | division of lotteries and shall reduce a player’s credit limit or suspend a player’s credit limit as |
14 | required by said rules and regulations. |
15 | (i) Voluntary credit suspension. A player may request that the licensed video lottery retailer |
16 | suspend or reduce his or her credit. Upon receipt of a written request to do so, the player’s credit |
17 | shall be reduced or suspended as requested. A copy of the request and the action taken by the credit |
18 | facilitator shall be placed in the player’s credit application file. |
19 | (j) Liability. In the event that a player fails to repay a debt owed to a licensed video lottery |
20 | retailer resulting from the extension of credit by that licensed video lottery retailer, neither the state |
21 | of Rhode Island nor the division of lotteries shall be responsible for the loss and said loss shall not |
22 | affect net table-game revenue or net terminal income. A licensed video lottery retailer, the state of |
23 | Rhode Island, the division of lotteries, and/or any employee of a licensed video lottery retailer, |
24 | shall not be liable in any judicial or administrative proceeding to any player, any individual, or any |
25 | other party, including table game players or individuals on the voluntary suspension list, for any |
26 | harm, monetary or otherwise, that may arise as a result of: |
27 | (1) Granting or denial of credit to a player; |
28 | (2) Increasing the credit limit of a player; |
29 | (3) Allowing a player to exercise his or her right to use credit as otherwise authorized; |
30 | (4) Failure of the licensed video lottery retailer to increase a credit limit; |
31 | (5) Failure of the licensed video lottery retailer to restore credit privileges that have been |
32 | suspended, whether involuntarily or at the request of the table game patron; or |
33 | (6) Permitting or prohibiting an individual whose credit privileges have been suspended, |
34 | whether involuntarily or at the request of the player, to engage in gaming activity in a licensed |
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1 | facility while on the voluntary credit suspension list. |
2 | (k) Limitations. Notwithstanding any other provision of this chapter, for any extensions of |
3 | credit, the maximum amount of outstanding credit per player shall be fifty thousand dollars |
4 | ($50,000) one hundred thousand dollars ($100,000). |
5 | SECTION 2. Amendments to regulatory agreement involving Bally's Corporation and |
6 | affiliates of Bally's Corporation. |
7 | Notwithstanding any provisions of the General Laws of the state or regulations adopted |
8 | thereunder to the contrary, the Division and the State of Rhode Island department of business |
9 | regulation (the "DBR") are hereby authorized and empowered to enter into one or more |
10 | amendments to the Amended and Restated Regulatory Agreement dated March 1, 2024, by and |
11 | among the Division, the DBR, Bally's, Bally's Management Group, LLC, UTGR, LLC, and Twin |
12 | River-Tiverton, LLC and Bally's RI iCasino, LLC (the "Amended and Restated Regulatory |
13 | Agreement"), which amendment (the "Regulatory Agreement Amendment"), among other things, |
14 | shall: |
15 | (1) Increase the "Maximum Leverage Ratio" to 5.5:1 allowing the Division, DBR and |
16 | Bally's to agree on the methodology used to calculate the "Leverage Ratio" through the Extended |
17 | Expiration Date, including without limitation and only if agreed by the Division, DBR and Bally's, |
18 | using net leverage instead of gross leverage, including EBITDA adjustments relating to |
19 | development projects, relying on the methodology used in other debt agreements and any other |
20 | modifications agreed from time to time. In addition to any such agreed changes, for purposes of |
21 | calculating the "Leverage Ratio," for the period beginning on the JV Effective Date and continuing |
22 | through the Extended Expiration Date, modify the definition of: (i) "Consolidated EBITDA" to |
23 | include any income Bally's earns from the Joint Venture or records as income under generally |
24 | accepted accounting principles as EBITDA and reduce the "VLT Addback" for Bally's |
25 | proportionate ownership share of the Joint Venture; and (ii) "Indebtedness" to exclude "Capital |
26 | Lease Obligations" entered into in connection with a sale-leaseback transaction provided that both |
27 | the transaction and the use of proceeds occur in accordance with the provisions of subsection (3) |
28 | of this section (all terms in quotations in this subsection (4) are as defined in the Amended and |
29 | Restated Regulatory Agreement); |
30 | (2) With the prior approval of the Division, amend the Consolidated Promotional Points |
31 | Program to provide that Twin River and Twin River-Tiverton collectively, and not each |
32 | individually, may issue to customers and prospective customers of the Lincoln Gaming Facility |
33 | and/or the Tiverton Gaming Facility Promotional Points in an aggregate amount up to the sum of: |
34 | (i) Twenty percent (20%) of the aggregate of the highest year of net terminal income for |
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1 | the Lincoln Gaming Facility and the highest year of net terminal income for the Tiverton Gaming |
2 | Facility; and |
3 | (ii) One million five hundred thousand dollars ($1,500,000), and thereafter, the |
4 | Consolidated Promotional Points Program shall be adjusted by the increase, if any, in the cost of |
5 | living. The increase in the cost of living shall be measured by the percentage increase, if any, as of |
6 | August of the previous year over the level as of August of the year preceding that year in the |
7 | Consumer Price Index for all Urban Consumers (CPI-U), as published by the United States |
8 | Department of Labor Statistics or its successor agency. |
9 | SECTION 3. This act shall take effect upon passage. |
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LC005887 | |
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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 | |
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1 | This act would increase the maximum amount of credit a video lottery retailer may extend |
2 | to a patron and would authorize certain amendments to the regulatory agreement involving Bally's |
3 | Corporation and affiliates of Bally's. |
4 | This act would take effect upon passage. |
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LC005887 | |
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