S 40 - Establishes a Twenty Year Contract with Two Major Gambling Companies - Rhode Island Key Vote

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Title: Establishes a Twenty Year Contract with Two Major Gambling Companies

Signed by Governor Dan McKee


Title: Establishes a Twenty Year Contract with Two Major Gambling Companies

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Title: Establishes a Twenty Year Contract with Two Major Gambling Companies

Vote Smart's Synopsis:

Vote to pass a bill that establishes a twenty year contract with two major gambling companies to provide state-run gambling services.

Highlights:

 

  • Defines “FTE (Full Time Employee)” as an individual assigned to work at least 2,080 hours of employment per year (Sec. 2).

  • Defines “IGT” as IGT Global Solutions Corporation, a Delaware corporation (Sec. 42-61.2-1).

  • Defines “Lincoln gaming facility” as the gaming and entertainment facility located at 100 Twin River Road in the town of Lincoln, RI (sometimes referred to as “Twin River” or the “Twin River gaming facility) (Sec. 42-61.2-1). 

  • Defines “Tiverton gaming facility” as the gaming and entertainment facility located at the intersection of William S. Canning Boulevard and Stafford Road in the town of Tiverton, RI (sometimes referred to as “Twin River-Tiverton”) (Sec. 42-61.2-14).

  • Requires that the 2,080 hours of employment include paid time off for vacation, illness, disability, and personal time (Sec. 3).

  • Requires “FTE (Full Time Employee)” status to include the following persons (Sec. 3):

    • Outsourced employees;

    • Consulting service providers; and 

    • Temporary employees that are retained through an employment agency in the State of Rhode Island.

  • Authorizes the State Lottery Division of the Department of Revenue to extend the IGT Master Contract through June 30, 2043 (Sec. 3). 

  • Requires IGT to pay the State Lottery Division a total of $27,000,000 in two increments (Sec. 3):

    • The first $13,500,000 on or before June 30, 2023; and

    • The other $13,500,000 on or before June 30, 2024.

  • Specifies that on the condition that the full $27,000,000 is paid to the State Lottery Division, IGT will become the exclusive provider of the following products and services, including, (Sec. 3):

    • Online lottery systems, online lottery terminals, and related equipment; 

    • Central communication systems;

    • Video lottery terminals, beginning on January 1, 2023, and ending on June 30, 2043;

    • Instant ticket vending machines;

    • Instant tickets;

    • The processing of online, instant ticket, and video lottery transactions; and 

    • “iLottery” games, which are traditional online lottery and instant ticket lottery games made available to players through the use of the internet through computers, mobile applications on mobile devices, or other interactive devices approved by the State Lottery Division.

      • Exempts IGT from being the sole provider of some products and services, such as online sports wagering; and 

      • Games, other than the traditional online lottery and instant ticket lottery games.

  • Specifies the following rates, which the State Lottery Division will charge based on IGT’s annual profits (Sec. 3):

    • For sales up to $275,000,000, the Division will impose a 5% rate;

    • For sales between $275,000,000 and $400,000,000, the Division will impose a 4% rate; and 

    • For sales above $400,000,000, the Division will impose a 5% rate.

  • Requires that IGT employ at least 1,100 FTEs (Full-Time Employees) each year, beginning in the calendar year 2022 (Sec. 3). 

  • Requires that IGT pay a $7,500 penalty if they fail to employ at least 1,100 full-time employees (Sec. 3). 

  • Requires Twin River and Twin River-Tiverton to offer compulsive and gambling problem programs that include, but are not limited to (Sec. 42-61.2-14):

    • Gambling problem awareness programs for employees;

    • Player self-exclusion programs; and 

    • Promotion of a gambling problem hotline.

  • Requires Twin River and Twin River-Tiverton to reimburse and pay the State Lottery Division at least $200,000 each year for such compulsive and gambling problem programs (Sec. 42-61.2-14).

  • Requires Twin River to build a 50,000 square foot expansion of the Lincoln Gaming Facility (Sec. 6).

  • Requires Twin River to lease at least 20,000 square feet of commercial space in Providence through at least June 30, 2043 (Sec. 6).

  • Requires Bally and Twin River Management Group, Inc. to hire at least 30 senior management employees by December 31, 2022 (Sec. 6).

Title: Establishes a Twenty Year Contract with Two Major Gambling Companies

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