Bally’s asks state for larger marketing reimbursements as smoking ban looms

PROVIDENCE, R.I. — As a bill to ban indoor smoking at Rhode Island’s casinos waits to be voted on, Bally’s is asking the state for help, in the form of a legislative change that would allow them bigger marketing reimbursements.

The bill, introduced by Senate Majority Leader Frank Ciccone on May 23, was passed by a Senate committee on May 28, despite concerns from the state Lottery director regarding costs and potential legal ramifications.

What the Bill Would Do:
    •    Allow Bally’s to receive state reimbursements for up to $27.25 million in annual marketing expenses, up from the current cap of $17 million.
    •    Tie future increases to inflation, significantly raising the state’s long-term financial commitment.

Why Now?
The move comes as the General Assembly considers finally closing a longstanding exemption that allows smoking in casinos — the only workplaces in Rhode Island still permitting it. Bally’s Vice President Craig Sculos admitted that smoking is a competitive advantage, and company reps say a ban could cost the state up to $20 million in lost revenue annually.

RILOT Says: Not So Fast
Rhode Island Lottery Director Mark Furcolo is warning lawmakers of significant risks:
    •    Increased costs to the state — potentially over $3 million per year
    •    Legal complications from reopening settled contracts
    •    A shift in financial risk from Bally’s to taxpayers

Furcolo said the state’s current marketing reimbursement model is already generous and has protected the state from excess spending.

Gambling was officially legalized in Rhode Island in 1974 when the state passed a law allowing charitable organizations to conduct bingo and raffle games. However, it wasn’t until 1986 that Rhode Island took a major step toward commercial gambling by legalizing video lottery terminals (VLTs) at licensed locations, which marked the beginning of the state’s modern gambling landscape.

The most significant shift came in 1992 when Rhode Island voters approved the establishment of a state-run casino in Newport. This was later shelved, but it laid the groundwork for further discussions on gambling expansion.

In 2018, Rhode Island made a major leap by legalizing sports betting. The state became the first in New England to offer sports wagering, following the Supreme Court’s decision to repeal the federal ban on sports betting. This paved the way for both in-person and online sports betting in Rhode Island, and the state saw significant growth in gambling revenue from these new avenues.

Today, Rhode Island’s gambling industry is centered around two major casinos—Twin River in Lincoln and Tiverton Casino—which offer VLTs, table games, and sports betting. The state’s gradual embrace of gambling has played a crucial role in its economy, generating significant tax revenue while also drawing tourists to its casinos and sports betting markets.