Bally’s asks state for Bigger 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 increase how much they are reimbursed for marketing.

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.