§ 42-61.2-2.2. State authorized to operate casino gaming at Newport Grand. [See Compiler's notes.] (a) State-operated casino gaming shall be authorized at the facility of the licensed video lottery terminal retailer known as "Newport Grand" located in the town of Newport; provided, that the requirements of Article VI, Section 22 of the Rhode Island Constitution are met with respect to said facility at the general election next held after enactment of this section.

(b) With respect to the Newport Grand facility, the authorization of this section 2.2 shall be effective upon:

(1) The certification by the secretary of state that the qualified voters of the state have approved the expansion of gambling at such facility to include casino gaming; and

(2) The certification by the board of canvassers of the city of Newport that the qualified electors of the city of Newport have approved the expansion of gambling at such facility to include casino gaming.

(c) The general assembly finds that:

(1) The operation of casino gaming at Newport Grand will play a critical role in the economy of the state and enhance local revenues;

(2) Pursuant to Article VI, Section 15 of the Rhode Island Constitution and the specific powers, authorities and safeguards set forth in subsection (c) herein in connection with the operation of casino gaming, the state shall have full operational control over the specified location at which casino gaming shall be conducted;

(3) It is in the best interest of the state to have the authorization to operate casino gaming as specified at Newport Grand;

(4) Pursuant to the provisions of subdivision 42-61.2-2.1(b)(4), and by action of the governor, an extensive analysis and evaluation of competitive casino-gaming operations was completed, which concluded that the viability of Newport Grand as a video-lottery terminal facility is threatened by the location of casino gaming in Southeast Massachusetts.

(5) The legislature shall, by enactment of comprehensive legislation during the 2012 session, determine the terms and conditions pursuant to which casino gaming would be operated in the state if it is authorized as set forth herein.

(d) Notwithstanding the provisions of any other law and pursuant to Article VI, Section 15 of the Rhode Island Constitution, the state is authorized to operate, conduct and control casino gaming at Newport Grand subject to subsection (a) above. In furtherance thereof, the state, through the division of state lottery and/or the department of business regulation, shall have full operational control to operate the foregoing facilities, the authority to make all decisions about all aspects of the functioning of the business enterprise, including, without limitation, the power and authority to:

(1) Determine the number, type, placement and arrangement of casino-gaming games, tables and sites within the facility;

(2) Establish with respect to casino gaming one or more systems for linking, tracking, deposit and reporting of receipts, audits, annual reports, prohibitive conduct and other such matters determined from time to time;

(3) Collect all receipts from casino gaming, require that Newport Grand collect casino-gaming gross receipts in trust for the state through the division of state lottery, deposit such receipts into an account or accounts of its choice, allocate such receipts according to law, and otherwise maintain custody and control over all casino-gaming receipts and funds;

(4) Hold and exercise sufficient powers over Newport Grand's accounting and finances to allow for adequate oversight and verification of the financial aspects of casino gaming at the facility, including, without limitation:

(i) The right to require Newport Grand to maintain an annual balance sheet, profit and loss, and any other necessary information or reports; and

(ii) The authority and power to conduct periodic compliance or special or focused audits of the information or reports provided, as well as the premises with the facility containing records of casino gaming or in which the business of Newport Grand's casino-gaming operations are conducted;

(5) Monitor all casino-gaming operations and have the power to terminate or suspend any casino-gaming activities in the event of an integrity concern or other threat to the public trust, and in furtherance thereof, require the licensed, video-lottery retailer to provide a specified area or areas from which to conduct such monitoring activities;

(6) Define and limit the rules of play and odds of authorized casino-gaming games, including, without limitation, the minimum and maximum wagers for each casino-gaming game;

(7) Have approval rights over matters relating to the employment of individuals to be involved, directly or indirectly, with the operation of casino gaming at Newport Grand;

(8) Establish compulsive gambling treatment programs;

(9) Promulgate, or propose for promulgation, any legislative, interpretive and procedural rules necessary for the successful implementation, administration and enforcement of this chapter; and

(10) Hold all other powers necessary and proper to fully effectively execute and administer the provisions of this chapter for its purpose of allowing the state to operate a casino-gaming facility through a licensed, video-lottery retailer hosting said casino gaming on behalf of the state of Rhode Island.

(e) Subject to subsection (a) above, the state, through the division of state lottery and/or the department of business regulation, may expand Newport Grand's existing video lottery license issued, or issue Newport Grand a new casino-gaming license, to permit casino gaming to the extent authorized by this act.

(f) Subject to subsection (a) above, all rules and regulations shall be promulgated by the state, through the division of state lottery and the department of business regulation, in accordance with the authority conferred upon the general assembly pursuant to Article VI, Section 15 of the Rhode Island Constitution. In accord therewith, subject to subsection (a) above, the state, through the division of state lottery and/or the department of business regulation, shall have authority to issue such regulations as it deems appropriate pertaining to control, operation and management of casino gaming as specifically set forth in subsections (b), (c) and (d).

History of Section. (P.L. 2012, ch. 24, § 1; P.L. 2012, ch. 25, § 1; P.L. 2013, ch. 501, § 6; P.L. 2014, ch. 436, § 1.)