Bally’s RI Asks for Extra Marketing Funds as Officials Mull Over Smoke Ban

Rhode Island’s two commercial casinos are seeking more state benefits as officials consider banning indoor smoking. The casinos argue that this measure would balance out the money they would lose if the ban goes into effect.

Rhode Island Considers Ending Casino Smoking

Rhode Island’s two Bally’s Corporation-owned casinos are seeking state benefits as a ban on indoor smoking looms. Although the operator has adamantly opposed the motions to end smoking inside its two properties, it hopes that it can at least find a way to make up for potential losses.

For context, Rhode Island officials are eyeing an end to indoor smoking at casinos as casino workers continue to protest against the unhealthy conditions they are forced to work in. Earlier his month, approximately 150 casino workers from the state’s two casinos entered the State House, expressing their support for a bill seeking to end indoor smoking.

If approved, House Bill 5464 and Senate Bill 188 would end a loophole that has so far exempted the Bally’s Lincoln and Bally’s Tiverton from the ban on indoor smoking.

Bally’s Opposes the Smoke Ban, Backs SB 1112

As mentioned, Bally’s has opposed the measure, saying that it could come at a great cost for its business, which already contributes a lot to the state. For context, Bally’s, which is the sole operator of brick-and-mortar casinos in Rhode Island, pays approximately 60% of its casinos’ video lottery terminal (VLT) revenue and 15.5% of their table game revenue as tax. The casinos are also required to pay a separate tax to their communities.

In total, Rhode Island’s two gambling properties pay approximately $350 million in taxes a year.

Bally’s argued that it already contributes a lot to its communities and therefore asked Rhode Island official to increase the annual marketing subsidy for casinos. For reference, the state currently offers roughly $4 million to Bally’s for marketing purposes.

According to Bally’s, an increase in his allotment could help it mitigate the negative effect of a smoke ban. The company has previously said that the worst-case scenario could cause it to lose as much as $20 million a year.  

Per Senate Bill 1112, Bally’s Lincoln and Bally’s Tiverton would join a single Consolidated Marketing Program, under which they would receive approximately $6.75 million instead.