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To keep high rollers in RI, Bally’s wants to allow up to $100K in gambling credit at casinos

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PROVIDENCE − With backing from Senate President Dominick Ruggerio, a fast-moving bill to double the gambling-on-credit limit at Rhode Island’s two Bally’s-run state casinos to $100,000 is sparking questions.

Among them: Why is this a good idea? How deeply is Bally’s able to probe the off-limits gambling habits of online gamblers or the patrons of the tribal casinos across the border? What else does this newly filed legislation actually do?

“Obviously we’re not interested in extending lines of credit to those individuals who would not be able to pay it back,” Bally’s representative Elizabeth Suever assured the Senate Committee on Special Legislation last week on the wide-ranging bill introduced on May 2.

Why it matters:

Taxpayers have a stake because state-sponsored gambling – including gambling in Bally’s-run two state casinos in Lincoln and Tiverton – is the state’s third largest source of revenue, with an anticipated $428.8 million in gambling revenue headed to the state treasury this year.

What is the rush on the bill?

No one from the Rhode Island Lottery – which is the state’s gambling control agency – or the Council on Problem Gambling appeared at last week’s hearing to say anything on the bill that Senate President Dominick Ruggerio allowed to be introduced more than two months after the Senate’s bill-introduction deadline.

Why did Ruggerio sponsor a bill this late in the session? “The bill was introduced at the request of Bally’s, to keep them on par with competition from casinos in Massachusetts,” a spokesperson for Ruggerio said.

A hearing has been scheduled for this Thursday on the matching House version of the bill. That version also seeks to give the state’s Department of Business Regulation the power to change the terms in the latest version of the state’s current operating agreement with Bally’s without having to ask legislative approval.

In the State House: More than one senator seemed shocked that the new language was not delineated in “blue” – as is usually the case – and unsatisfied by Suever’s answer that this is not, technically, the kind of law that requires legislative approval.

What are the arguments for a $100,000 credit limit?

How Suever explained the need: “We want to make sure that, as the operator of the two casinos for the state of Rhode Island, we’re doing everything that we can to be regionally competitive. By that I mean competitive with those casinos that are in Connecticut, which are some of the largest casinos in the United States, and Massachusetts.”

She said Bally’s already has high limit rooms, but players in the rooms have said they can’t get the same level of credit in Rhode Island as they can in Massachusetts.

Massachusetts does not have a credit limit. (Connecticut casinos are tribal, meaning they can decide how much credit to issue, she said.)

While Bally’s is not suggesting Rhode Island go as far as Massachusetts, she said, extending the limit from $50,000 currently to $100,000 would be “an amenity for our players that play very high limits because they don’t want to be carrying that amount of cash on their person as they’re coming and going from the casino.”

Suever said the limit would be for a “very, very limited amount of players.”

The limit would only be available to people gambling at the casino in person, she said, and would not be available to those using iGaming.

She did not mention how the casino’s are faring financially. While state revenues from the Lottery’s instant tickets, Powerball and Daily Numbers games are up year-over-year, the state’s share of the take from the video-slots and table games at the two casinos was down. At the Tiverton casino, the table game action was down 8.2%, at LIncoln, 3.2%.

What does it take to get the $100,000 limit?

Before extending or upping anyone’s credit, Suever said they:

  • Have the player file a credit application
  • Have Bally’s do bank account checks and credit history checks
  • Require two forms of identification
  • Require a player number to track their play and their gaming history at all local casinos

How many players current carry a $50,000 credit limit? Suever wasn’t able to say, and the Rhode Island Lottery did not respond to an inquiry about the gambling debt loads of Bally’s customers in Rhode Island by deadline.

What else would the bills do?

Other features of the bill would change the 20-year deal for Rhode Island’s lottery and casino operations, according to Bally’s spokeswoman Patti Doyle, by:

  • Allowing negotiations between RI Lottery and Bally’s on the calculation of Bally’s debt ratio, allowing, for example, “addbacks for development projects and not just acquisitions.”
  • Changing the way promotional points are calculated. This is money that comes straight off the top of the state’s share that the casino can give customers as an incentive to visit and play more.

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