SportsBettingInRhodeIsland.com

Lawsuit Filed To Take Down Rhode Island Sports Betting

Daniel Borjas — Thu, 02 May 2019 19:41:00 +0000

A lawsuit was filed in response to Rhode Island legalizing mobile betting.
The suit says that sports betting needs to go to a referendum to be legalized.
All of sports betting in Rhode Island could be taken down because of this.

PROVIDENCE, R.I. – A lawsuit was filed on Wednesday, and it could potentially completely take down sports betting in Rhode Island.

The Details Of The Suit

The suit was orchestrated by the former chair of the Rhode Island Republican party, Brandon Bell. He helped create the lawsuit that was filed by the attorneys of Daniel S. Harrop, a doctor from Providence. Harrop filed the suit through Larisa Law and Fontaine Bell & Associates. Joseph S. Larisa posted on his Twitter account about the suit he filed to the Superior Court.

The lawsuit was filed in a response that mobile sports betting in Rhode Island was legalized. Essentially, the bill is arguing that not only is mobile sports betting unconstitutional in Rhode Island, sports betting as a whole is. This suit is challenging the legality of sports betting in Rhode Island.

Abiding By The State Constitution

Sports betting was legalized in Rhode Island thanks to Governor Gina Raimondo. She included sports betting to her state budget in 2018, which made it legal in the state. It did not legalize mobile wagering though. Because they were behind projections, lawmakers filed and passed RI SB 37 to legalize mobile sports gambling.

The basis of this lawsuit is that sports betting was never legalized by having a statewide vote. Article VI Section 22 of the Rhode Island Constitution states that expansions of gambling must be “approved by the majority of those electors voting in a statewide referendum.” This can be backed up because table games and other forms of gambling were legalized via referendum in the past.

What the lawsuit will effectively do is ask the Superior Court to declare sports betting in Rhode Island unconstitutional. That is until a statewide referendum takes place and sportsbooks are again legalized. Even though this was a response to mobile sports betting becoming legalized, both online and retail sportsbooks in Rhode Island would shut down.

The main issue that the Superior Court is going to have to deal with is how it defines sports betting. New Mexico has legal sports betting because they are defining it as Class III gaming. The challenge is whether adding sports betting is an expansion of gambling, or is it Class III gaming.

For now, sportsbooks are going to remain open. The Superior Court will hear the arguments form the plaintiffs and the defendants, who are listed as the Rhode Island Department of Administration and Rhode Island Division of Lotteries. If the plaintiffs win their case, sports betting in Rhode Island will cease to operate until a statewide referendum is held.

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Put The Budget Shortfall In Rhode Island On Governor Raimondo’s Sportsbooks’ Projections

Michael Molter — Tue, 23 Apr 2019 19:38:00 +0000

The state accounted for $24 million in their yearly budget from sports betting revenue.
After three full months, state revenue stands just above $150,000.
Mobile betting is expected to launch in the upcoming weeks.

PROVIDENCE, R.I. – Though the state of Rhode Island has been falling well short of sports betting revenue projections, there may be a simple reason why.

Governor Gina Raimondo and her administration projected for $17.1 million more in revenue for the first year of operation than was projected by the American Gaming Association.

Whether it was a miscalculation, an error to read the AGA’s 2017 projections, or the belief that the state could “hit the over”, it is now clear why the sports betting revenue for Rhode Island in on track to hit just 2.5% of the budgeted funds for the year.

In the timeframe where the majority of bets are made from US players, Rhode Island sportsbooks watched their handle grow to $53.5 million in the first three full operating months. However, only $300,000 was kept by the books in that timespan, leaving $153,135.15 for the state collected from their 51% sports betting tax

The report, which suggested that in a “limited availability” “high tax rate” “fully developed market” scenario, Rhode Island would be able to see $6.4 million enter the state – much less than the $24 million that was approved in the state’s budget.

It also set the stipulations that wagering would not have any restrictions. As Rhode Island sports bettors know, you are unable to bet on college athletic teams that are located in Rhode Island, regardless of where they are playing.
Some are looking for soon-to-launch mobile betting to help the cause but, according to the SVP of Public Affairs at the AGA, Sara Slane, the launch of mobile betting will only slightly boost revenue for the state.

Either way, the state has much ground to make up to fund the many programs and operations slated in the budget.

Add in the possible addition of SB 382, which would see a $100,000 increase on the annual flat fee given to the cities from the casinos for hosting the industry, and the sports betting scene in Rhode Island is even further in trouble.

It still raises the question as to why such a pro-gambling governor could be so off on sports betting in Rhode Island expectations. Not only has she seen thousands of dollars funding the National Governors Association from gambling entities, but she has also received money for her inauguration from Twin River and IGT.

Last year, Raimondo also named Don Sweitzer the Treasurer of the Democratic Governors Association. Sweitzer is the chairman of IGT Global Solutions.

Her strong connections to the gambling industry proved her desire to make Rhode Island one of the first states to offer single-game wagering, but at what cost?

Government officials estimate that the budget will be short by $40 million over the next two years, which is being held responsible by the lack of revenue from sports betting.

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Sports Betting Tax Revenue Is Falling Short

Daniel Borjas — Sun, 21 Apr 2019 19:37:00 +0000

Sports betting revenue is falling short in multiple states.
Gambling on sports is popular with high numbers of money wagered.
Only New Jersey has met its projections for sports betting.

PROVIDENCE, R.I. – Many states that have legalized and regulated sports betting are not meeting their revenue predictions.

Super Bowl Takes Down Rhode Island Revenue

One of the states that did not come close to their projected monthly revenue is Rhode Island. This is largely due to the fact to the Super Bowl. The state sportsbooks lost $2.35 million because many people in Rhode Island bet on the Patriots to win. Since the Patriots did in fact win, the sportsbooks lost a lot of money and that in turn affected tax revenue.

Representative William O’Brien said that the Super Bowl “hurt us tremendously” in terms of tax revenue. Rhode Island was predicted to generate $1 million a month but it instead generated about $50,000 a month. The representative is still happy because he won $100 on the game and he is a fan of the Patriots.

Other States Falling Behind

Rhode Island is not the only state having an issue keeping up with predicted sports betting revenue. West Virginia is only making one-fourth of the predicted monthly tax revenue from sports betting. Mississippi and Pennsylvania are only reaching one half of their predicted tax revenue.

There are a couple of different reasons that this could be happening. Some of the legalized states did not open all of their sportsbooks at the same time. Some sportsbooks had to delay in their opening.

Many of these states also have restrictions against mobile sports betting. This includes completely not allowing mobile sports betting, restricting mobile betting to on the casino floor, or having to go to a casino to register your mobile device.

New Jersey Is Leading The Charge

New Jersey doesn’t seem to have any of these issues. New Jersey has met its revenue predictions largely due to the fact of how the state handles online and mobile sports betting. People in New Jersey do not have to go to a casino to register their mobile device and they are allowed to bet anywhere in the state.

A report from the New Jersey Division of Gaming Enforcement said that 80% of the taxed revenue from sports betting in the state came from mobile sports betting. No other legal state does mobile sports betting as New Jersey does.

Rhode Island Is Coming Up With New Strategies

Rhode Island has expanded sports betting that will allow more people to access their sportsbooks. Governor Gina Raimondo has recently signed RI SB 37 which was made to legalize mobile sports betting in the state. Lawmakers are hoping that this would help boost tax revenue on sports betting in Rhode Island.

One of the important things to note is how mobile wagering is going to work in Rhode Island. The rule is that you must go to one of the Twin River Casino’s to register for an account for bettors to be able to use their mobile device. That is not the same as New Jersey as players can register for an account remotely. This restriction might still cut into tax revenue in Rhode Island.

There are over 20 plus states that have bills being considered to legalize and regulate sports betting. These states are studying states with legalized sports betting to see how they can get the most out of it. They may want to follow New Jersey’s example as that state has the most success in sports betting.

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Online Sports Betting May Be Coming Soon To Rhode Island

Michael Molter — Mon, 25 Mar 2019 19:35:00 +0000

Rhode Island Legislature passes online gambling bill but must be signed by the governor.
Legislators believe mobile gambling will add $3 million to state revenue.
Rhode Island Constitution insists on voter approval for any betting expansion.

PROVIDENCE, R.I. – Rhode Island is one of the few states that allows sports betting within state borders. The betting takes place in the states two Twin River casinos: Lincoln and Tiverton. Fortunately, this may not be the only spot for sports betting in Rhode Island, soon you may be able to bet right from your couch. Rhode Island lawmakers have approved a bill for a mobile sports betting app.

The App’s Requirements

The app would allow residents to access the Twin River Casino’s betting option via mobile. Residents that would want to use this app to palace bets online would have to sign up for the app in person at either one of the Twin River Casinos. Rhode Island residents can only use the app if they are within state boundaries.

Legal Hurdles And Projected Revenue

The mobile sports gambling app still has a few hurdles to jump to be officially passed into law. State Governor Gina Raimondo must sign the bill before it can be passed into law. The Rhode Island Constitution also states that voter approval is required for any gambling expansion. A few Republicans have also expressed their displeasure with the pace of the app legalization process for mobile gaming.

“I support this type of gaming. I don’t support moving ahead when there are substantial questions about its legality,” said Republican House minority leader Rep. Blake Filippi. “I think we should be asking for an advisory opinion for the Rhode Island Supreme Court before we build our budget around it and invest in the technology.”

An incentive for the bill’s speedy path through the legislature is that the State is expecting online gaming, through the possible gaming app, to bring Rhode Island roughly $3 million dollars in online gambling revenue. The state is also expecting another $27 million from its two land-based sportsbooks.

All Eyes On Rhode Island

The state’s bill for an online gaming app rests in the hands of Governor Raimondo and Rhode Island residents. If Governor Raimondo signs the bill, then it will be up to the residents to vote this gambling expansion bill into law. Rhode Island bettors have their sports gambling at their two casinos and soon may have it right on their lamp stand beside their keys and wallet.

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Rhode Island GOP Plans To Sue Over Mobile Sports Betting

Daniel Borjas — Fri, 08 Mar 2019 19:33:00 +0000

RI SB 37 will legalize mobile betting for Rhode Island
The state’s GOP plans to sue over this bill
They claim that expanding to mobile betting should go through a voter referendum

PROVIDENCE, R.I. – This week, the Rhode Island Republican Party said that they are considering suing over mobile sports betting proposal.

Lawmakers are set to vote on RI SB 37 next week. If the bill passes the house and gets signed by Governor Gina Raimondo, it would allow for mobile and online sports betting to be allowed in Rhode Island. The GOP of Rhode Island plans to sue over this mobile wagering bill.

If the GOP of Rhode Island decides to go ahead and sue over the issue of sports betting in Rhode Island, this will most likely delay online and mobile wagering for the state.

GOP Wants The Issue To Go To The Voters

The GOP said that any issue regarding sports betting or any expansion on gambling should not be left up to lawmakers.

"We are actively looking at a lawsuit to protect the constitutional right of Rhode Islanders to approve or disapprove by referendum whether or not they want the new type of gambling in the form of sports betting in person and online in our state," said Chairman Brandon Bell of the GOP.

How Sports Betting Became Legal In The First Place

When sports betting became legal in Rhode Island, it was originally thanks to a voter referendum. Residents of the state voted in 2012 and 2016 to approve casino gambling in the state. This allowed the construction of two Class III casinos and it also included sports betting.

Then SB 2045 appeared in the State Senate and Governor Raimondo was quick to adopt the language from the bill to her budget proposal. The proposal eventually passed in mid-June and sports betting was legalized.

The Referendum Conundrum

Although there were bills voted on, residents of Rhode Island had voted to allow sports betting. The GOP is arguing that it should be left up to the voters again because of this. But, the residents have already voted on the issue so it can be argued that it was already decided by referendum to allow mobile sports betting.

Lawmakers are doing the same thing for mobile wagering just like they when they legalized sports betting. They are voting on a bill to help put in place what the voters already had decided on.

If the state’s GOP decides to go ahead and sue, these are likely going to be the two arguments that are going to play out.

Senate President Wants To Push Forward

Democratic Senate President Dominick Ruggerio said that he is shocked that the GOP would sue because mobile betting would “support lower taxes and greater individual liberties.” He is also concerned about delaying new revenue that the state needs right now.

"The revenue from sports wagering supports critical state services, like road and bridge repairs, education and human services, while offsetting reliance on taxes," said Ruggerio.

As it currently stands, the Rhode Island GOP has not yet officially sued over the issue. RI SB 37 passed in the Senate last month and it passed the House Finance Committee last week. The current plan for lawmakers is to have the full House to vote on the legislation next week. If the GOP decides to sue, then a vote on the bill could end up getting delayed.

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Legal Status of Legal Sports Betting in Rhode Island

Sierra Kennedy — Tue, 05 Jun 2018 19:32:00 +0000

The number of states appealing for legal sports betting within their borders has been growing since the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in May, and Rhode Island is one of them. The Ocean State is quickly making progress to have sports betting within the next year.

In January of 2018, legislation was introduced to the Rhode Island General Assembly that would amend the lottery agreement in the state, allowing for video terminals equipped with sports betting capabilities to be installed in Rhode Island’s two casinos.

Within the 4 page document, legislators laid out the gambling restrictions that would be applied to sports betting in Rhode Island. The Rhode Island Lottery will be in charge of regulating and licensing venues to offer sports betting in the state. Residents would have to be 21 years or older to legally bet on sports in the Ocean State. No wagering on events that take place within the state will occur, nor will residents be allowed to wager on any collegiate Rhode Island teams, regardless of where the event takes place.

It also clearly states that any sports betting Rhode Island residents choose to participate in will have to take place in one of the two brick and mortar casinos located in the state. Twin Rivers in Lincoln is already up and running, and the Tiverton location is set to make its grand opening later this year. Mobile betting may be in the works in the future, but for now, RI officials are pretty much dead set on keeping sports betting to an in-person activity.

No action was taken after this bill was introduced in the legislature, as it needed to await the Supreme Court decision on PASPA to take effect. Now that PASPA is dead, however, it appears that Rhode Island is wasting no time in finding out exactly how it can begin implementing sports betting in the state.

The Providence Journal recently published information extracted from a series of emails between Rhode Island’s Lottery Director and several popular online gaming sites that have a vested interest in Rhode Island gambling, namely the international gaming giant IGT.

According to these emails, Rhode Island’s governor Gina Raimondo is so optimistic in upcoming opportunities that she has included a proposed 2019 budget that includes speculative revenue if sports betting were to be offered in the state.

These emails also revealed that many people, including Rhode Island Lottery Director Gerald Aubin and IGT senior vice president Scott Gunn, have agreed that Rhode Island sports betting was legalized in both 2012 and 2016 when voters approved gaming expansion in the state.

“In 2012 and 2016, Rhode Island voters approved Class III gaming, which we believe would include sports betting if in fact states are cleared to offer it,” wrote Aubin in an email response to Gunn’s inquiry on the topic. After the May decision by SCOTUS to kill PASPA, it looks like Rhode Island is in the clear to start implementing sports betting in the state.

Rhode Island’s lottery will be in charge of regulating sports betting and it is currently accepting offers from vendors to partner in the state in order to be the ones actually running the book through its casinos.

There are a number of vendors who have already hinted at tossing their hat in, including long-standing Rhode Island lottery fixture IGT. The state lottery will accept a total of 18 bids, and then further narrow down the candidates until they settle on a single partner.

Interestingly enough, also in the mix of potential sports betting vendors in Rhode Island is the popular DFS site, DraftKings. Their bid would be an interesting one to read, as Rhode Island’s proposed legislation was pretty clear on the issue of mobile and online betting – that there wouldn’t be any. If and when sports betting is legalized in Rhode Island, it would have to be conducted on Twin River property, at either the Lincoln or Tiverton locations.

Draft Kings contends that there are ways to navigate the currently proposed legislation. As it is written in the bill amendment, Rhode Island sports betting can only take place within a licensed, brick and mortar location. But DraftKings representative Sarah Koch states the legislation only talks about placing the bets at a physical casino in the state, not about where the casino lays the bet. Koch even went so far as to back up her claims with an official legal opinion.

“As long as it’s the casino offering the bets and accepting the bets at that location, in most case law the precedent shows that what matters is where the bet is accepted, not necessarily where the bet is placed.”

It’s an interesting tactic, to be sure. DraftKings has been operating relatively successfully for a few years, and Koch says that “we’re extremely well positioned with our customer base to rapidly expand into sports betting and offer sports betting on our online platform.” Only time will tell if Rhode Island lawmakers will see it the same way that she does.

Bids for the singular contract are due to the Lottery by August 1st. Both casinos are already equipped with space to open a sportsbook at their physical locations, so expect everything to begin moving very quickly once a bid is accepted and a contract is set.

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