2020 Rhode Island General Laws
Title 42 - State Affairs and Government
Chapter 42-61.2 Video-Lottery Games, Table Games and Sports Wagering
Section 42-61.2-7 Division of revenue.

§ 42-61.2-7. Division of revenue.

(a) Notwithstanding the provisions of § 42-61-15, the allocation of net, terminal income derived from video-lottery games is as follows:

(1) For deposit in the general fund and to the state lottery division fund for administrative purposes: Net, terminal income not otherwise disbursed in accordance with subdivisions (a)(2) - (a)(6) inclusive, or otherwise disbursed in accordance with subsections (g)(2) and (h)(2);

(i) Except for the fiscal year ending June 30, 2008, nineteen one hundredths of one percent (0.19%), up to a maximum of twenty million dollars ($20,000,000), shall be equally allocated to the distressed communities as defined in § 45-13-12 provided that no eligible community shall receive more than twenty-five percent (25%) of that community's currently enacted municipal budget as its share under this specific subsection. Distributions made under this specific subsection are supplemental to all other distributions made under any portion of general laws § 45-13-12. For the fiscal year ending June 30, 2008, distributions by community shall be identical to the distributions made in the fiscal year ending June 30, 2007, and shall be made from general appropriations. For the fiscal year ending June 30, 2009, the total state distribution shall be the same total amount distributed in the fiscal year ending June 30, 2008, and shall be made from general appropriations. For the fiscal year ending June 30, 2010, the total state distribution shall be the same total amount distributed in the fiscal year ending June 30, 2009, and shall be made from general appropriations, provided, however, that seven hundred eighty-four thousand four hundred fifty-eight dollars ($784,458) of the total appropriation shall be distributed equally to each qualifying distressed community. For each of the fiscal years ending June 30, 2011, June 30, 2012, and June 30, 2013, seven hundred eighty-four thousand four hundred fifty-eight dollars ($784,458) of the total appropriation shall be distributed equally to each qualifying distressed community.

(ii) Five one hundredths of one percent (0.05%), up to a maximum of five million dollars ($5,000,000), shall be appropriated to property tax relief to fully fund the provisions of § 44-33-2.1 [repealed]. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum amount to the nearest five dollar ($5.00) increment within the allocation until a maximum credit of five hundred dollars ($500) is obtained. In no event shall the exemption in any fiscal year be less than the prior fiscal year.

(iii) One and twenty-two one hundredths of one percent (1.22%) to fund § 44-34.1-1, entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998," to the maximum amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no event shall the exemption in any fiscal year be less than the prior fiscal year.

(iv) Except for the fiscal year ending June 30, 2008, ten one hundredths of one percent (0.10%), to a maximum of ten million dollars ($10,000,000), for supplemental distribution to communities not included in subsection (a)(1)(i) distributed proportionately on the basis of general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008, distributions by community shall be identical to the distributions made in the fiscal year ending June 30, 2007, and shall be made from general appropriations. For the fiscal year ending June 30, 2009, no funding shall be disbursed. For the fiscal year ending June 30, 2010, and thereafter, funding shall be determined by appropriation.

(2) To the licensed, video-lottery retailer:

(a)(i) Prior to the effective date of the Newport Grand Master Contract, Newport Grand twenty-six percent (26%), minus three hundred eighty-four thousand nine hundred ninety-six dollars ($384,996);

(ii) On and after the effective date of the Newport Grand Master Contract, to the licensed, video-lottery retailer who is a party to the Newport Grand Master Contract, all sums due and payable under said Master Contract, minus three hundred eighty-four thousand nine hundred ninety-six dollars ($384,996).

(iii) Effective July 1, 2013, the rate of net, terminal income payable to the licensed, video-lottery retailer who is a party to the Newport Grand Master Contract shall increase by two and one quarter percent (2.25%) points. The increase herein shall sunset and expire on June 30, 2015, and the rate in effect as of June 30, 2013, shall be reinstated.

(iv)(A) Effective July 1, 2015, the rate of net terminal income payable to the licensed video-lottery retailer who is a party to the Newport Grand Master Contract shall increase over the rate in effect as of June 30, 2013, by one and nine-tenths (1.9) percentage points. (i.e., x% plus 1.9 percentage points equals (x + 1.9)%, where "x%" is the current rate of net terminal income payable to the licensed, video-lottery retailer who is a party to the Newport Grand Master Contract). The dollar amount of additional net terminal income paid to the licensed video-lottery retailer who is a party to the Newport Grand Master Contract with respect to any Newport Grand Marketing Year as a result of such increase in rate shall be referred to as "Additional Newport Grand Marketing NTI."

(B) The excess, if any, of marketing expenditures incurred by the licensed, video-lottery retailer who is a party to the Newport Grand Master Contract with respect to a Newport Grand Marketing Year over one million four hundred thousand dollars ($1,400,000) shall be referred to as the "Newport Grand Marketing Incremental Spend." Beginning with the Newport Grand Marketing Year that starts on July 1, 2015, after the end of each Newport Grand Marketing Year, the licensed, video-lottery retailer who is a party to the Newport Grand Master Contract shall pay to the Division the amount, if any, by which the Additional Newport Grand Marketing NTI for such Newport Grand Marketing Year exceeds the Newport Grand Marketing Incremental Spend for such Newport Grand Marketing Year; provided however, that such video-lottery retailer's liability to the Division hereunder with respect to any Newport Grand Marketing Year shall never exceed the Additional Newport Grand Marketing NTI paid to such video-lottery retailer with respect to such Newport Grand Marketing Year.

The increase in subsection 2(a)(iv) shall sunset and expire upon the commencement of the operation of casino gaming at Twin River-Tiverton's facility located in the town of Tiverton, and the rate in effect as of June 30, 2013, shall be reinstated.

(b)(i) Prior to the effective date of the UTGR master contract, to the present, licensed, video-lottery retailer at Lincoln Park, which is not a party to the UTGR master contract, twenty-eight and eighty-five one hundredths percent (28.85%), minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687);

(ii) On and after the effective date of the UTGR master contract, to the licensed, video-lottery retailer that is a party to the UTGR master contract, all sums due and payable under said master contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars ($767,687).

(3)(i) To the technology providers that are not a party to the GTECH Master Contract as set forth and referenced in P.L. 2003, ch. 32, seven percent (7%) of the net, terminal income of the provider's terminals; in addition thereto, technology providers that provide premium or licensed proprietary content or those games that have unique characteristics, such as 3D graphics; unique math/game play features; or merchandising elements to video-lottery terminals may receive incremental compensation, either in the form of a daily fee or as an increased percentage, if all of the following criteria are met:

(A) A licensed, video-lottery retailer has requested the placement of premium or licensed proprietary content at its licensed, video-lottery facility;

(B) The division of lottery has determined in its sole discretion that the request is likely to increase net, terminal income or is otherwise important to preserve or enhance the competitiveness of the licensed, video-lottery retailer;

(C) After approval of the request by the division of lottery, the total number of premium or licensed, proprietary-content video-lottery terminals does not exceed ten percent (10%) of the total number of video-lottery terminals authorized at the respective licensed, video-lottery retailer; and

(D) All incremental costs are shared between the division and the respective licensed, video-lottery retailer based upon their proportionate allocation of net terminal income. The division of lottery is hereby authorized to amend agreements with the licensed, video-lottery retailers, or the technology providers, as applicable, to effect the intent herein.

(ii) To contractors that are a party to the master contract as set forth and referenced in P.L. 2003, ch. 32, all sums due and payable under said master contract; and

(iii) Notwithstanding paragraphs (i) and (ii), there shall be subtracted proportionately from the payments to technology providers the sum of six hundred twenty-eight thousand seven hundred thirty-seven dollars ($628,737).

(4)(A) Until video-lottery games are no longer operated at the Newport Grand gaming facility located in Newport, to the city of Newport one and one hundredth percent (1.01%) of net terminal income of authorized machines at Newport Grand, except that effective November 9, 2009, until June 30, 2013, the allocation shall be one and two tenths percent (1.2%) of net terminal income of authorized machines at Newport Grand for each week the facility operates video-lottery games on a twenty-four-hour (24) basis for all eligible hours authorized; and

(B) Upon commencement of the operation of video-lottery games at Twin River-Tiverton's facility located in the town of Tiverton, to the town of Tiverton one and forty-five hundredths percent (1.45%) of net terminal income of authorized machines at the licensed, video-lottery retailer's facility located in the town of Tiverton, subject to subsection (g)(2); and

(C) To the town of Lincoln, one and twenty-six hundredths percent (1.26%) of net terminal income of authorized machines at Twin River except that:

(i) Effective November 9, 2009, until June 30, 2013, the allocation shall be one and forty-five hundredths percent (1.45%) of net terminal income of authorized machines at Twin River for each week video-lottery games are offered on a twenty-four-hour (24) basis for all eligible hours authorized; and

(ii) Effective July 1, 2013, provided that the referendum measure authorized by P.L. 2011, ch. 151, article 25 as amended, section 4, is approved statewide and in the Town of Lincoln, the allocation shall be one and forty-five hundredths percent (1.45%) of net terminal income of authorized video-lottery terminals at Twin River, subject to subsection (h)(2); and

(5) To the Narragansett Indian Tribe, seventeen hundredths of one percent (0.17%) of net terminal income of authorized machines at Lincoln Park, up to a maximum of ten million dollars ($10,000,000) per year, that shall be paid to the Narragansett Indian Tribe for the account of a Tribal Development Fund to be used for the purpose of encouraging and promoting: home ownership and improvement; elderly housing; adult vocational training; health and social services; childcare; natural resource protection; and economic development consistent with state law. Provided, however, such distribution shall terminate upon the opening of any gaming facility in which the Narragansett Indians are entitled to any payments or other incentives; and provided, further, any monies distributed hereunder shall not be used for, or spent on, previously contracted debts; and

(6) Unclaimed prizes and credits shall remit to the general fund of the state; and

(7) Payments into the state's general fund specified in subsections (a)(1) and (a)(6) shall be made on an estimated monthly basis. Payment shall be made on the tenth day following the close of the month except for the last month when payment shall be on the last business day.

(b) Notwithstanding the above, the amounts payable by the division to UTGR related to the marketing program described in the UTGR master contract (as such may be amended from time to time) shall be paid on a frequency agreed by the division, but no less frequently than annually.

(c) Notwithstanding anything in this chapter 61.2 of this title to the contrary, the director is authorized to fund the marketing program as described in the UTGR master contract.

(d) Notwithstanding the above, the amounts payable by the division to the licensed, video-lottery retailer who is a party to the Newport Grand Master Contract related to the marketing program described in the Newport Grand Master Contract (as such may be amended from time to time) shall be paid on a frequency agreed by the division, but no less frequently than annually.

(e) Notwithstanding anything in this chapter 61.2 to the contrary, the director is authorized to fund the marketing program as described in the Newport Grand Master Contract.

(f) Notwithstanding the provisions of § 42-61-15, but subject to § 42-61.2-7(h), the allocation of net, table-game revenue derived from table games at Twin River is as follows:

(1) For deposit into the state lottery fund for administrative purposes and then the balance remaining into the general fund:

(i) Sixteen percent (16%) of net, table-game revenue, except as provided in § 42-61.2-7(f)(1)(ii);

(ii) An additional two percent (2%) of net, table-game revenue generated at Twin River shall be allocated starting from the commencement of table games activities by such table-game retailer and ending, with respect to such table-game retailer, on the first date that such table-game retailer's net terminal income for a full state fiscal year is less than such table-game retailer's net terminal income for the prior state fiscal year, at which point this additional allocation to the state shall no longer apply to such table-game retailer.

(2) To UTGR, net, table-game revenue not otherwise disbursed pursuant to subsection (f)(1); provided, however, on the first date that such table-game retailer's net terminal income for a full state fiscal year is less than such table-game retailer's net terminal income for the prior state fiscal year, as set forth in subsection (f)(1)(ii), one percent (1%) of this net, table-game revenue shall be allocated to the town of Lincoln for four (4), consecutive state fiscal years.

(g) Notwithstanding the provisions of § 42-61-15, the allocation of net, table-game revenue derived from table games at the Tiverton facility owned by Twin River-Tiverton is as follows:

(1) Subject to subsection (g)(2) of this section, one percent (1%) of net, table-game revenue shall be allocated to the town of Tiverton;

(2) Fifteen and one-half percent (15.5%) of net, table-game revenue shall be allocated to the state first for deposit into the state lottery fund for administrative purposes and then the balance remaining into the general fund; provided however, that beginning with the first state fiscal year that a facility in the town of Tiverton owned by Twin River-Tiverton offers patrons video-lottery games and table games for all of such state fiscal year, for that state fiscal year and each subsequent state fiscal year that such Tiverton facility offers patrons video-lottery games and table games for all of such state fiscal year, if the town of Tiverton has not received an aggregate of three million dollars ($3,000,000) in the state fiscal year from net, table-game revenues and net terminal income, combined, generated by such Tiverton facility, then the state shall make up such shortfall to the town of Tiverton out of the state's percentage of net, table-game revenue set forth in this subsection (g)(2) and net terminal income set forth in subsections (a)(1) and (a)(6); provided further however, if in any state fiscal year either video-lottery games or table games are no longer offered at a facility in the town of Tiverton owned by Twin River-Tiverton, LLC, then the state shall not be obligated to make up the shortfall referenced in this subsection (g)(2); and

(3) Net, table-game revenue not otherwise disbursed pursuant to subsections (g)(1) and (g)(2) of this section shall be allocated to Twin River-Tiverton.

(h) Notwithstanding the foregoing § 42-61.2-7(f) and superseding that section effective upon the first date that a facility in the town of Tiverton owned by Twin River-Tiverton offers patrons video-lottery games and table games, the allocation of net, table-game revenue derived from table games at Twin River in Lincoln shall be as follows:

(1) Subject to subsection (h)(2), one percent (1%) of net, table-game revenue shall be allocated to the town of Lincoln;

(2) Fifteen and one-half percent (15.5%) of net, table-game revenue shall be allocated to the state first for deposit into the state lottery fund for administrative purposes and then the balance remaining into the general fund; provided however, that beginning with the first state fiscal year that a facility in the town of Tiverton owned by Twin River-Tiverton offers patrons video-lottery games and table games for all of such state fiscal year, for that state fiscal year and each subsequent state fiscal year that such Tiverton facility offers patrons video-lottery games and table games for all of such state fiscal year, if the town of Lincoln has not received an aggregate of three million dollars ($3,000,000) in the state fiscal year from net, table-game revenues and net terminal income, combined, generated by the Twin River facility in Lincoln, then the state shall make up such shortfall to the town of Lincoln out of the state's percentage of net, table-game revenue set forth in this subsection (h)(2) and net terminal income set forth in subsections (a)(1) and (a)(6); provided further however, if in any state fiscal year either video-lottery games or table games are no longer offered at a facility in the town of Tiverton owned by Twin River-Tiverton, LLC, then the state shall not be obligated to make up the shortfall referenced in this subsection (h)(2); and

(3) Net, table-game revenue not otherwise disbursed pursuant to subsections (h)(1) and (h)(2) shall be allocated to UTGR.

History of Section.
(P.L. 1992, ch. 133, art. 39, § 1; P.L. 1993, ch. 138, art. 61, § 1; P.L. 1993, ch. 138, art. 81, § 1; P.L. 1994, ch. 70, art. 22, § 1; P.L. 1995, ch. 370, art. 26, § 2; P.L. 1995, ch. 370, art. 40, § 138; P.L. 2000, ch. 55, art. 22, § 2; P.L. 2002, ch. 65, art. 20, § 1; P.L. 2003, ch. 376, art. 10, § 1; P.L. 2004, ch. 595, art. 28, § 1; P.L. 2005, ch. 117, art. 11, § 1; P.L. 2005, ch. 234, § 2; P.L. 2005, ch. 236, § 2; P.L. 2005, ch. 322, § 9; P.L. 2005, ch. 323, § 9; P.L. 2006, ch. 246, art. 30, § 1; P.L. 2007, ch. 6, § 2; P.L. 2007, ch. 73, art. 25, § 3; P.L. 2008, ch. 13, § 1; P.L. 2008, ch. 100, art. 15, § 1; P.L. 2009, ch. 5, art. 7, § 1; P.L. 2009, ch. 68, art. 6, § 2; P.L. 2009, ch. 218, § 1; P.L. 2010, ch. 16, § 5; P.L. 2011, ch. 151, art. 12, § 10; P.L. 2011, ch. 151, art. 25, § 9; P.L. 2012, ch. 241, art. 16, § 1; P.L. 2012, ch. 289, § 4; P.L. 2012, ch. 290, § 4; P.L. 2013, ch. 144, art. 9, § 10; P.L. 2014, ch. 436, § 1; P.L. 2014, ch. 528, § 57; P.L. 2015, ch. 141, art. 11, § 21; P.L. 2016, ch. 5, § 2; P.L. 2016, ch. 6, § 2; P.L. 2017, ch. 302, art. 8, § 2.)