How Casino Revenue Could Fund the Transition to Smoke-Free Casinos in Rhode Island

Key Points:

• Casino smoking regulations in Rhode Island may soon change.
• Bally’s Corporation manages both brick-and-mortar casinos in the state.
• A potential compromise could involve Bally’s going smoke-free in return for additional funding from the state.

Bally’s Corporation is reportedly considering easing its resistance to ending indoor smoking at its two Rhode Island properties: Bally’s Lincoln and Bally’s Tiverton. This shift follows the passing of a significant political figure—Senate President Dominick Ruggerio, a lifelong smoker who had previously fought against efforts to ban smoking in casinos.

A Compromise in Sight

Senate Majority Leader Franc Ciccone has informed the Rhode Island Current that negotiations are underway to enact a smoke-free policy in both casinos by January 1, 2027. This will take place in exchange for an increase in the annual marketing subsidy these casinos receive from the state.

According to the Rhode Island Public Health and Workplace Safety Act of 2004, casinos are permitted to designate specific areas for smoking as long as they have separate ventilation systems from nonsmoking areas. This loophole has been a point of contention amongst lawmakers and casino employees.

Advocacy for Healthier Workplaces

Several lawmakers, led by Rep. Teresa Tanzi, have long been advocating to close the casino smoking loophole. Workers at Bally’s have formed the Casino Employees Against Smoking Effects (CEASE) group, voicing their desire for better health protections in the workplace—similar to those enjoyed by most other professions.

This advocacy may soon bear fruit, as after many years of lobbying, a clear resolution appears close at hand.

Legislation Proposal to Benefit Both Parties

In response to the recent discussions, Tanzi has reintroduced legislation aimed at closing the smoking loophole. In collaboration with Ciccone, a proposed bill aims to increase the annual marketing reimbursements for Bally’s Lincoln and Tiverton. In a scheme where approximately 60% of each slot machine’s gross gaming revenue alongside 15% of table game proceeds go to the state, the marketing fund is designed to encourage player engagement.

Currently, Bally’s shares about $4 million annually from the state’s gaming tax, but this is capped at a three percent increase each year. Ciccone’s newly proposed Senate Bill 1112 seeks to both eliminate that cap and increase the overall incentive for Bally’s, allowing them to potentially see about $6.75 million annually from marketing reimbursements if the bill is passed.

Challenges Ahead

While there’s hope for a smoke-free future in these casinos, Ciccone has highlighted that ongoing negotiations will be crucial. In a bid to solidify this change, he plans to file amendments or put forth companion legislation which would formally request Bally’s to eliminate indoor smoking by the outlined start date of 2027.

Despite this progress, Bally’s spokesperson, Patti Doyle, has emphasised that “conversations… are ongoing.”

The recent passing of Senate President Ruggerio, a staunch supporter of keeping smoking allowed in casinos, may remove one of the toughest barriers to implementing a smoke-free policy in Rhode Island. As it stands, Rhode Island is one of just seven states where iGaming is legal.

Conclusion

The potential for Bally’s Rhode Island casinos to become smoke-free represents a significant change for the state’s gaming industry and its workforce. Increased marketing funding could facilitate this transition while maintaining economic viability for Bally’s. Advocates for a healthier workplace environment eagerly await the outcome of the impending legislative discussions.