Providence Journal – With one of the state’s primary revenue sources threatened by the imminent expansion of gambling in Massachusetts, Rhode Island officials have stood pat on whether to move into the new frontier of Internet gaming.
Rhode Island has yet to test Internet gambling even as other states open betting operations in the digital realm. A move online would siphon money away from existing Lottery retailers and, depending on the proposed game, would need statewide approval.
New Jersey began offering online gaming in November 2013, joining Delaware and Nevada. Meanwhile, eight other states had legislation pending at year’s end that would allow Internet gambling.
These states began pushing ahead shortly after a U.S. Department of Justice ruling in December 2011 that reversed its opposition to many forms of Internet gambling.
Until the states of Illinois and New York requested a ruling, the Justice Department had held that online gambling was illegal under the Wire Act of 1961, which bars wagers via telecommunications that cross state lines or international borders.
But the Department’s Office of Legal Counsel said the Wire Act applies only to sports betting, not to a state’s use of the Internet to sell lottery tickets to adults within its borders or abroad.
At the time, R.I. Lottery Director Gerald S. Aubin said Rhode Island officials would “explore” online gambling in light of that ruling, something they did do.
Rhode Island officials never pushed the idea beyond the exploration stage.
“As with any product issues relating to the industry, it is our fiduciary responsibility to perform our due diligence and research all aspects and potential impact, if any, to revenue,” Aubin said last week.
In the Lottery’s opinion, it could offer online versions of games it already operates, such as Keno and bingo.
Agency officials have “continuous discussions” with others in the lottery industry about such matters, Aubin said.
