Online gambling could be legalized immediately, but land-based sportsbooks would require a US Supreme Court decision.
In 2018, Rhode Island might become the fifth U.S. state to legalize online gambling. Rhode Island news sources reported this week that Governor Gina Raimondo is considering an online gambling legalization measure.
The same reports suggest that Rhode Island’s legislature might legalize sports betting, if the current Supreme Court case involving the State of New Jersey and the American sports leagues ends in New Jersey’s favor.
The state lottery’s revenues have taken a hit in recent months. Land-based gambling is likely to decline in the next few years, as major resort-casinos open in Boston (Everett) and Springfield.
Meanwhile, the Twin River’s Tiverton site, which is being renovated and expanded in order to compete better with the Massachusetts casinos, is facing construction delays. With those various factors to consider, Gov. Raimondo thinks online gambling revenues might be an answer.
2017 Drop in Lottery Revenues
In May 2017, the Rhode Island Lottery Commission reported a decline in lottery revenues for the state. That trend has continued in the intervening months, which could be a disaster for the Rhode Island Treasury Department. Lottery ticket sales are one of the Top 5 revenue sources for the government of Rhode Island, so it is an indespensible part of the budget.
Even worse, lottery revenues are one of the revenue sources which has grown naturally over the years. American bet on state lotteries more than ever, while the escalating revenues of the multi-state lottery associations contributed to Rhode Island’s revenue stream. Since officials and lawmakers have come to expect an increase in lottery sales, any potential drop would be a budget disaster.
Rhode Island Online Casinos and Poker Sites
Online casinos and poker sites would boost revenues for brick-and-mortar Rhode Island gaming operators, who presumably would be given the right to apply for online gambling licenses. Despite that possibility, Rhode Island’s land-based casino operators do not appear excited at the opportunity.
Twin River Tiverton Lukewarm on iGaming
Patti Doyle, a spokeswoman for Twin River Tiverton, said, “With respect to online gaming, we watch this issue closely on a national and local level, but since so much has yet to be decided from a Supreme Court perspective, and from the State’s own policy perspective, we are not yet in a position to gauge our potential involvement or its possible impact on Twin River properties in Rhode Island.”
Online gambling might cannibalize brick-and-mortar casino revenues, though most studies have shown less overlap between the online customer base and land-based casino customer base than one might expect. In one study of the New Jersey online gambling industry, 80% of online gamblers say they never visit a land-based casino in a year’s time.
Twin Rivers Tiverton’s spokeswoman continued, “We added table games at Twin River in Lincoln, and will offer [them] at Twin River Tiverton, based on our understanding that while some of our customers prefer to play the slot machines, others prefer to play Blackjack, roulette, poker, etc. Similarly, we think there will continue to be those who prefer a brick and mortar gaming venue versus an online one. We will continue to closely monitor the issue.”
Rhode Island Sports Betting Laws
Rhode Island’s politicians are more interested in sports betting, too, though land-based sports betting is banned under the PASPA federal law at the moment — and online sports betting is banned under the 2006 UIGEA and 1961 Wire Act.
The 1992 Professional and Amateur Sports Betting Act (PASPA) bans sports betting in 46 US states, the District of Columbia, and Puerto Rico. Only Nevada has legal sportsbooks, while Montana, Oregon, and Delaware have a more limited type of sports betting called “sports lotteries”. A current case before the US Supreme Court is testing PASPA. If the SCOTUS strikes down the federal ban in NCAA v. Christie, then sports betting could be legal sometime in 2018 in any state which legalizes the form of betting.
David Ortiz, a spokeman for Gov. Raimondo, told the press, “The Governor is open to considering legalizing internet sports betting in Rhode Island if the Supreme Court opens a path for states to take action.”
Gina Raimondo on Legal Online Gambling
So is Rhode Island Speaker of the House Nick Mattiello, who is said to be intrigued by the idea of Internet gambling revenues. Mattiello said, “If the U.S. Supreme Court issues a favorable ruling to legalize sports betting in New Jersey as expected, I would be very interested in such legislation for Rhode Island. Many details would have to be worked out as to where the betting would take place, but I am certainly open to the possibilities here and would work with the Lottery Commission to make sure it is done appropriately.”
“Depending on the timing of the Supreme Court ruling, I don’t know if this could be in place for the next fiscal year’s budget.”
