A bill that authorizes online casino gambling to begin in Rhode Island on March 1 passed on Thursday with a vote of 57 to 11 by the state’s House of Representatives. A duplicate bill, SB 948, was also passed by the Senate. The next stop would be the desk of Rhode Island Governor Daniel McKee.
When the bill first appeared in the House finance committee, representatives voiced concern over the minimum gambling age set at 18. The age limit was raised to 21.
Rising in strong opposition to the legislation, Rep. David Morales said he believed the bill was being rushed.
“This is a significant piece of legislation that we are considering,” Morales said. He asked members of the House to consider what online iGaming could do to employees already working at land-based casinos in the state.
Rhode Island currently has two commercial casinos operating in the state under the authority of the state’s lottery. The state also offers retail sports betting at the casinos and online sports wagering. Bally’s Corp. and International Gaming Technology (IGT) operate the two casinos, lottery and sports betting.
In 2022, total statewide commercial casino gaming revenue was $688.2 million, up 15.8% from 2021. Casino tax revenue in 2022 was $345.6 million.
Bally’s and IGT will now take over operating iGaming in the state, a venture that could generate $130 million in additional gross gaming revenue annually at market maturity.
“I find this a very concerning and, frankly disturbing way for our state to gain revenue,” said Rep. Teresa Tanzi in opposition to the iGaming bill. “This is not the way to do it.”
When asked about safeguards players can use to make sure they don’t over-gamble, Rep. Scott Slater said participants can utilize responsible gambling tools to control time and financial activity. Some of these safeguards can be deposit limits on a daily, weekly, or monthly basis. Players can set the length of wagering sessions. Once a limit is reached, the player is logged out.
“This is by far the most incredibly dangerous piece of legislation that I have seen since I’ve been here,” said Rep. Brandon Potter on Thursday. Potter introduced several amendments to iGaming bill HB 6348 that were defeated.
Rhode Island will become the seventh state to launch online casinos. Currently, Connecticut, Pennsylvania, New Jersey, West Virginia, Delaware and Michigan operate online casinos.
Under the bill and controlled by an online casino app run through the Rhode Island State Lottery, the state will collect a 61% tax on all slots revenue and 15.5% on all table games.
“There’s nothing to fear here,” Rep. Charlene Lima told House members Thursday. “And I’ll tell you why we have this with Bally’s, because we have the best deal in the books with Bally’s where we get 61% of the money. And guess what, that money goes to some great programs that a lot of you have fought for. So, I don’t understand what the concern is. I love doing business with a company that gives us a 61% return on our money. The highest in the country. You can’t get a better deal than that.”
Rep. Michelle McGraw responded saying, “Have any of your constituents asked you for this? Have any of them come to you and said this is something we need for Rhode Island because the only people that I have heard speaking in favor of this is Bally’s.”
