Rhode Island Nears Legalization of Online Casino Games, Bally’s Set to Be Exclusive Operator

Rhode Island is on the approach of becoming the seventh state in the country to legalize online casino games, subject to House approval and the governor’s signature. SB 948 was just passed by the Senate with an overwhelming majority of 30-4, and it now moves to the House for consideration. The Finance Committee’s support, by a vote of 10-2, aided in moving the legislation to the floor.

If the measure is passed, Bally’s will have the sole right to operate iGaming in Rhode Island. An modified version of the bill also permits for live internet table games with on-screen dealers streamed from a remote location. This amendment was offered to address concerns about state legislation requiring at least one live person in online table gaming.

The bill’s author and presenter, Senate President Dominick J. Ruggerio, emphasized the importance of exploring alternatives that protect and strengthen Rhode Island’s competitive position in the gambling sector, particularly the possibility for iGaming.

Ruggerio stated, “Our state casinos provide an important source of revenue to fund vital programs and investments that benefit all Rhode Islanders. The companies managing casino operations on behalf of the state have made significant investments to ensure they are well positioned to thrive in the years ahead.”

According to the proposed rules, gamers must be at least 21 years old and must register their iGaming accounts in person at the Bally’s casino in Rhode Island. Bally’s will use the IGT platform, which is already in use in the state’s real casinos. The state intends to tax online slot revenue at 61% and online table game revenue at 15.5%.

According to a tax revenue study commissioned by Bally’s, Rhode Island might produce an additional $93.3 million in gross gaming revenue in the first year of iGaming operations, with the total possibly reaching $130.6 million by the fifth year. Over a five-year period, this predicted growth equates to an additional $210 million in tax revenue for the state.

Because of changes to the legislation, the effective date of implementation has been pushed back from January 1, 2024 to March 1, 2024. While the bill received overwhelming support from the Finance Committee, there were a few dissenting votes. Representative Teresa Tanzi expressed concerns about worker protections and safeguards in the iGaming deal with the outside provider.

According to information provided at the conference, the measure authorises the Rhode Island Lottery to enter into the contract and set the scope and terms. If there are no violations of contract, the agreement might potentially last for about 20 years.

Rhode Island is set to join a rising number of states in legalizing online casino games, with Bally’s positioned to be a prominent player in this burgeoning sector.

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