Rhode Island Enters New Digital Gambling Era as Governor McKee Signs iGaming Bill

Rhode Island’s casino scene experienced a significant boost when Governor Dan McKee signed Senate Bill 948 into law on June 22nd, a move that came just before the clock ran out. The new legislation amplifies Bally’s present monopoly on land-based casinos, granting them a fresh dominion: iGaming.

The Legislative Journey to iGaming

The initial endorsement of the bill happened last Thursday when the Rhode Island House of Representatives and the Senate lent their support to the new law. The bill’s passage meant it was sent to Governor McKee, with the expectation of a sign-off or veto by June 23rd. His decision to approve opened the door to online table games and slots, set to commence operation from April 2024.

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Senate president Dominick J Ruggerio, a key supporter of the bill, said: “This legislation provides an added convenience to Rhode Islanders who would like to play the existing table games offered at Twin River via their mobile devices. This igaming legislation is constitutional, is geared to mature users, contains education provisions for problem gamblers and preserves the revenue allocation percentages as they are currently in place.”

Consolidation of Bally’s Empire

This new law signifies an evolution of Bally’s current monopoly in Rhode Island. It allows their online arm, Gamesys, to become the state’s sole iGaming operator, a feat accomplished under the banners of Virgin Casino, Tropicana Casino, and Rainbow Riches Casino. Furthermore, in February, it was revealed that Bally’s had a hand in crafting the legislation, a fact they confirmed in a statement.

A significant element of the legislation includes a 50% tax on revenue from online slots. The remaining income is to be divided between Bally’s and International Game Technology (IGT), who are partnering to deliver the new online gambling experience. Bally’s and IGT also manage Sportsbook Rhode Island, a product of the Rhode Island Lottery. Other forms of online gambling, like table games, face a lower tax rate of 18%. The legislation ensures that the existing revenue sharing percentages will remain unchanged.

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Bally’s and IGT were granted a 20-year no-bid contract in 2021 to manage the state’s land-based casinos: Bally’s Twin Rivers Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel. The deal will remain effective until 2043.

Regulation, Oversight and Geolocation Technology

The Rhode Island Division of the Lottery, which presently oversees Bally’s two casinos, will also regulate the online gaming industry. The responsibility for this task falls under the purview of organization director Mark Furcolo. The new law provides Furcolo with the authority to devise “reasonable rules and regulations for iGaming in the state.”

The law permits Rhode Island residents above the age of 21 to participate in online gaming, provided they are physically within the state. Geolocation technology will be employed to enforce this rule, although certain exceptions will be allowed if the Rhode Island Division of the Lottery signs a reciprocal agreement with another state’s regulator.

Currently, only six states – New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, and Connecticut – have legalized iGaming. However, it’s widely recognized for its potential to generate more income than sports wagering, which is regulated in a larger number of states.

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