Online Casino Legislation Heads to Rhode Island Governor for Signature

While online sports betting has been legalized in over 35 states, the going has not been as smooth for online casino operators. It's been challenging to pass online casino legislation from one state to the next because of compliance issues with Indian Nations across the country. Just when it looked like 2023 would not see the passing of any new online casino legislation, the state of Rhode Island delivered a huge surprise.

On June 15, 2023, the Rhode Island House passed HB 6348 by a vote of 57-11. On the same day, the Senate passed SB 948 by a vote of 30-4. Both bills were identical and authorized online casino access for the state's residents. Since the House's bill required no amendments, this historic legislation will head to the desk of Governor Daniel McKee for signature. Gov. McKee is expected to sign this legislation in short order.

Rhode Island Joins Small Group of States to Legalize Online Casino Play

It would be an understatement to say that Rhode Island is expected to join a small group of states that have already legalized online casinos. In fact, RI is expected to become the 7th state to legalize online casino gambling, joining the ranks of New Jersey, Pennsylvania, West Virginia, Connecticut, Michigan, and Delaware.

Earlier this year, several other states took a look at legalizing such online gambling activities. Bills were presented in states like Iowa, Indiana, Maryland, and Illinois. Much to the chagrin of residents in those states, there just wasn't enough momentum to get online casino legislation across the finish line. Maybe next year.

As recently as two months ago, there was nothing in the works that seem to indicate online casino legislation had a chance in RI. All of a sudden, the powers to be had an awakening, and now the appropriate legislation is awaiting Gov. McKee's signature. Perhaps, the motivation to get something done quickly came from estimates that indicated online casino gambling could bring as much as $130 million in annual tax revenue to the state.

It's noteworthy that opposition to these bills was small but vocal. They seemed to object to giving Ballys and IGT (software developers) too much influence over the state's online gambling community. The opposition was heard and rebuffed.

The Details

Since HB 6348 and SB 948 are identical, the details in both bills are the same. Here is a look at some of those details:

• The RI Lottery Commission will oversee the online casino gambling community
  
• Taxes on online slot gross revenue will be set at 61% with taxes on table games set at 15.5%
  
• All players must be at least 21 years old
  
• Online table games must be manned by live dealers
  
• In pursuit of online poker legislation, these bills allow for multistate participation
  

While a formal launch date has not been set, online casino operators are expected to get the green light by no later than March 2024.

Additional sports betting legislation (SB 3) was also sent to the Governor for signature. This bill would legalize betting on in-state college teams that are involved in a tournament with at least three (3) other teams.