Raimondo Banking on $23M from Sports Betting in FY19 Budget Proposal for RI

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Raimondo Banking on $23M from Sports Betting in FY19 Budget Proposal for RI

Governor Gina Raimondo is betting on a Supreme Court case that would allow sports book gambling
Rhode Island Governor Gina Raimondo submitted her Fiscal Year 2019 budget proposal to the General Assembly on Thursday — and in an effort to close a projected $204.1 million budget deficit, the state is betting on $23.5 million from a proposal for sports betting at Twin River facilities.  

According to the administration, the sports betting proposal for Rhode Island would follow the Las Vegas model, in that gamblers would have to make betting in-person -- and not follow New Jersey’s controversial online gaming model at this time.  Officials did confirm the current case before the Supreme Court on all sports betting would determine the viability. SEE GoLocal coverage the issue.

"Four states have legalized sports betting currently in the country, with Nevada being the broadest.  Four have passed legislation pending the Supreme Court decision, and 3 additional states have additional legislation pending. We believe Massachusetts will also introduce legislation," said a Raimondo official on Thursday.  "We view it as a competitive necessity...we're doing our due diligence -- -- there could be an online component."

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Addressing the Deficit

At a budget briefing at the Department of Administration, officials unveiled how the state plans to resolved the deficit — which includes expanding the number of medical marijuana compassion centers, and anticipating increased revenue from cigarette and tobacco taxes.  

* Sports betting $23.5 million
* Increasing Access to Compassion Centers $5.1 million
* Cigarette & Tobacco Taxes $6.2
* Services Tax Modification to Alight with MA $14.5

Latest for Gaming in RI 

As GoLocal reported in October, Rhode Island has been facing falling lottery revenue. 

Distinguished URI Professor of Busines Ed Mazze warns not to overestimate the impact of the new Tiverton casino -- which is facing construction delay -- on revenues.

“For over a decade there has been talk about what will happen when state lottery revenue no longer meets its targets because of increasing competition from Connecticut and Massachusetts gambling facilities as well as other entertainment options customers have in Rhode Island. So it is not surprising that Fiscal 2017 lottery revenue has decreased," said Mazze. "There will be a small and short-term uptick when Tiverton opens in 2018. It has been expected that the efforts of the state's economic development activities will make-up the lost revenue. This has not happened yet but may over the next five years.'

https://www.golocalprov.com/business/ris-new-budget-armageddon-falling-lottery-revenues


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