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H 8150Tourism & Recreation

The Utgr Master Contract and the Twin River - Tiverton Master Contract - Consolidated Marketing Program

This bill combines marketing contracts for Rhode Island's two casinos and adjusts the limits on promotional free play they can offer.

Held for study
Population
Affected
25
Introduced Feb 27, 2026Committee House Finance

Plain-English Summary

This legislation authorizes the Rhode Island Division of Lotteries to consolidate the separate marketing contracts for the Lincoln and Tiverton casino facilities into a single "Consolidated Master Contract." It establishes a cap on the amount the state reimburses the casinos for marketing expenses, set at a portion of $27.25 million, which will be adjusted annually for inflation. Furthermore, the bill amends the "Promotional Points Program," allowing the casinos to distribute free play credits up to 20% of their average net terminal income from the prior three years, plus an additional $750,000, with future inflation adjustments.

For younger readers

Rhode Island has two big places called casinos where adults play games to win money. The state government helps these businesses pay for advertisements to get people to visit. This new rule combines the paperwork for both casinos into one single agreement to make it easier to manage. It also sets a limit on how much money the state will help pay for these ads. Additionally, the casinos give out "points" that let people play games for free. This bill changes the rules to let the casinos give away a specific amount of these free points.

Who & Where It Applies

Impacted groups
Casino Operators (Bally's/UTGR)RI Division of LotteriesCasino PatronsState Budget OfficersHospitality Workers
Impacted communities
Lincoln, Tiverton

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Establishes a firm cap on the amount of marketing expenses the state will reimburse to the casino operators, preventing open-ended corporate subsidies.
  • Mandates that the cost of auditing the promotional points program be borne by the private casino operator (UTGR) rather than the taxpayers.
  • Consolidates administrative contracts, potentially streamlining government oversight and reducing bureaucratic inefficiency within the Division of Lotteries.
  • Increases the allowance for "promotional points" (free play), which acts as a lure to encourage gambling and may negatively impact vulnerable individuals prone to addiction.
  • Ties the marketing reimbursement cap to inflation (CPI), guaranteeing that the amount of money the state diverts to corporate marketing support will increase automatically over time.
  • Continues the state's reliance on regressive gambling revenue and entanglement with corporate casino interests rather than seeking progressive revenue sources.
For Conservatives
  • Reduces regulatory complexity by merging two separate master contracts into one, streamlining operations for the business entities involved.
  • Allows the private businesses (casinos) greater flexibility to offer promotional incentives to customers, fostering a more competitive business environment.
  • Ensures that marketing caps and promotional allowances adjust for inflation, protecting the business's operational capacity against economic devaluation.
  • Perpetuates government involvement in private industry by maintaining a system where the state reimburses a private corporation for marketing expenses.
  • Creates automatic increases in state financial obligations through inflation indexing, rather than requiring legislative approval for spending hikes.
  • Maintains a complex regulatory framework with state-mandated caps and formulas, rather than allowing the free market to dictate business marketing strategies.

Votes

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Full Bill Text

SECTION 1. Except to the extent amended by this act, the terms, conditions, provisions and definitions of Chapter 322 and 323 of the Public Laws of 2005, Chapter 16 of the Public Laws of 2010, Chapter 151, Article 25 of the Public Laws of 2011, Chapters 289 and 290 of the Public Laws of 2012, Chapter 145, Article 13 of the Public Laws of 2014, Chapter 141, Article 11, Sections 16 -- 22 of the Public Laws of 2015, and Chapters 005 and 006 of the Public Laws of 2016, Chapter 302, Article 8, Sections 4-6 of the Public Laws of 2017, and Chapters 41; and of the Public Laws of 2021 (in each case as the more recent law may have amended an earlier law or laws), are hereby incorporated herein by reference and shall remain in full force and effect.

SECTION 2. Definitions. For the purposes of this act, the following terms shall have the following meanings, and to the extent that such terms are otherwise defined in any provision of the general or public laws, for purposes of this act, those terms are hereby amended to read as follows:

(1) “Adjustment Amount” means the percentage increase in the consumer price index (CPI) as reported by the Bureau of Labor Statistics (or any successor index that replaces it) as determined on an Adjustment Date by multiplying:

(i) The original marketing cap amount specified in the Consolidated Marketing Program prior to any Adjustment Amount; and

(ii) The fraction:

(A) The numerator of which is the CPI published for the month immediately preceding the Adjustment Date; and

(B) The denominator of which is the CPI value published for the month of June, 2025.

(2) “Adjustment Date” means the first date of each Marketing Year.

(3) “Consolidated Marketing Program” means that Consolidated Marketing Program authorized in this act.

(4) “Consolidated Master Contract” means the UTGR Master Contract and the Twin River- Tiverton Master Contract as amended, restated, and consolidated pursuant to the terms set forth in this act.

(5) “Division” means the state lottery division of the department of revenue and/or any successor in interest thereto.

(6) “Division Percentage” means for any Marketing Year, the Division’s percentage of net terminal income derived from video lottery terminals located at the Tiverton Facility and the Lincoln Facility, as set forth in § 42-61.2-7.

(7) “Lincoln Facility” means the Bally’s Twin River Lincoln Casino Resort located at 1 Twin River Road, Lincoln, Rhode Island.

(8) “Marketing Cap” means an amount equal to the Division Percentage multiplied by twenty-seven million two hundred and fifty thousand dollars ($27,250,000), and increased annually on the Adjustment Date by the Adjustment Amount.

(9) “Marketing Program” means, as to UTGR, that marketing program set forth in Chapter 16, Section 4(a)(iii) of Part A, of the Public Laws of 2010, as amended by Chapter 151, Article 25,

Section 8 of the Public Laws of 2011, and as amended by Chapter 145, Article 13, Section 5 of the Public Laws of 2014, and as amended by Chapters 005 and 006 of the Public Laws of 2016. As to Twin River-Tiverton, “Marketing Program” means that marketing program set forth in Chapter 16,

Section 4(a)(iii) of Part B of the Public Laws of 2010, as amended by Chapter 151, Article 25,

Section 8 of the Public Laws of 2011, and as amended by Chapters 005 and 006 of the Public Laws of 2016.

(10) “Marketing Year” means the fiscal year of the state.

(11) “Tiverton Facility” means the Bally’s Tiverton Casino & Hotel located at 7 Tiverton Casino Boulevard, Tiverton, Rhode Island.

(12) “Twin River-Tiverton” means Twin River-Tiverton, LLC and its permitted successors and assigns under the Twin River-Tiverton Master Contract, as amended, restated, and consolidated pursuant to this act.

(13) “UTGR” means UTGR, LLC, and its permitted successors and assigns under the UTGR Master Contract, as amended, restated, and consolidated pursuant to this act.

SECTION 3. Authorized procurement of Consolidated Master Contract. Notwithstanding any provisions of the General Laws of the state or regulations adopted thereunder to the contrary, within ninety (90) days of the enactment of this act, the Division is hereby authorized and empowered to enter into an amended, restated, and consolidated contract (the “Consolidated Master Contract”) among the Division, UTGR, and Twin River-Tiverton, which shall amend, restate, and consolidate the UTGR Master Contract and the Twin River-Tiverton Master Contract, and which shall:

(1) Consolidate the Marketing Program applicable to UTGR and the Marketing Program applicable to Twin River-Tiverton into the Consolidated Marketing Program, which shall be monitored by the Division; and shall further provide that the marketing expenditures incurred by UTGR and Twin River-Tiverton, collectively, and not each individually, will be reimbursed by the Division in accordance with the following terms:

(i) For each Marketing Year, the Division shall pay UTGR an amount equal to the product of the Division Percentage multiplied by the total combined marketing expenditures of UTGR and Twin River-Tiverton; provided, however, that the total amount payable by the Division for each Marketing Year pursuant to this section shall not exceed the Marketing Cap, as adjusted annually on the Adjustment Date;

(ii) Provided, however, that in any partial Marketing Year, the total amount payable by the Division shall be capped at the amount equal to the Marketing Cap multiplied by a fraction:

(A) The numerator of which is the number of days in any partial marketing year; and

(B) The denominator of which is three hundred sixty-five (365); and

(iii) Any amounts related to the Consolidated Marketing Program payable by the Division shall be paid on a frequency agreed by the Division (but no less frequently than annually) out of that share of net terminal income disbursed pursuant to § 42-61.2-7.

(2) The foregoing supersedes and replaces any law applicable to the Tiverton Facility or the Lincoln Facility relating to the Marketing Program pertaining to such facility.

(3) The UTGR Master Contract and the Twin River-Tiverton Master Contract, as amended and restated and as consolidated into the Consolidated Master Contract pursuant to this act, shall remain in full force and effect. If there is a conflict between any provision of the Consolidated Master Contract and this act, the provisions of this act control.

SECTION 4. The Supplementary Promotional Points Program applicable to Twin River, which is in addition to the Initial Promotional Points Program, shall be amended so that UTGR may distribute to customers and prospective customers Promotional Points of up to but not more than sixteen percent (16%) of Twin River net terminal income for the Prior Marketing Year. For avoidance of doubt, as a result of the foregoing amendment, the approved amount of Promotional Points that may be distributed by UTGR pursuant to the Initial and Supplementary Promotional Points Programs, in the aggregate, may be up to but not more than twenty percent (20%) of the average of the prior three (3) years of Twin River net terminal income, plus an additional seven hundred fifty thousand dollars ($750,000), subject however, to subsections (a)(3) and (a)(4) below, and beginning on the first date following the Prior Marketing Year, beginning 2027 and each subsequent year thereafter, the distributive amount of Promotional Points shall be adjusted annually for inflation, indexed to the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, as published by the United States Bureau of Labor Statistics. The terms and conditions of the Initial and Supplementary Promotional Points Programs applicable to Twin River shall be established from time to time by the Division, and such terms and conditions shall include, without limitation, a state fiscal-year audit of the program, the cost of which audit shall be borne by UTGR.

SECTION 5. This act shall take effect upon passage. EXPLANATION BY THE LEGISLATIVE COUNCIL OF AN ACT RELATING TO THE UTGR MASTER CONTRACT AND THE TWIN RIVER -- TIVERTON MASTER CONTRACT -- CONSOLIDATED MARKETING PROGRAM *** This act would restate the UTGR Master Contract and the Twin River-Tiverton Master Contract and would consolidate the marketing program of each into the Consolidated Marketing Program. This act would take effect upon passage.