Bally's requests Rhode Island authorities to raise casino credit limits.
Bally's Corporation, based in Rhode Island, wants to increase the size of credit lines they can offer to their high-rolling customers. Bally's operates two commercial casinos in the state - Bally's Twin River Lincoln and Bally's Tiverton. These properties feature slot-like video lottery terminals (VLTs), live dealer table games, and sports betting on behalf of the Rhode Island Lottery.
Currently, the state's gaming law restricts Bally's, the authorized video lottery retailer, from issuing more than $50,000 in gaming credit to a player. Bally's is requesting to double this cap to $100,000.
State Senate President Dominick Ruggerio, a strong supporter of gaming and indoor smoking, introduced a bill in early May to increase the credit limit as requested by Bally's. Ruggerio, who introduced the measure two months after the filing deadline, claimed this was allowed due to the need to keep Bally's casinos competitive with those in neighboring Connecticut and Massachusetts. Rhode Island's gaming revenue comes from about 60% of the VLT revenue, 18% of table win, and 51% of gross sportsbook win.
Casinos often provide credit lines to high-rollers to relieve them of the need to carry large amounts of cash. These credit lines, known as "markers," typically require repayment within 15 to 45 days with a post-dated check. Players not known to the casino may see their credit scores affected if they request a marker. Bally's Corp.'s credit rating recently experienced several downgrades.
Not all casinos offer credit facilities; the cost of maintaining a credit department and the smaller clientele at smaller gaming properties usually make it impractical. However, most major gaming resorts in the US do offer credit, with Bally's Lincoln and Tiverton being examples.
High rollers are considered the most valuable guests in a casino. Though they account for only a small percentage of the casino's overall customer traffic, they are believed to account for about half of the gaming industry's revenue.
Massachusetts and Connecticut have no credit limits for their casinos. The absence of such limits allows the casinos to cater better to high rollers, who are major revenue sources.
A Bally's spokesperson told a Senate Committee deliberating Ruggerio's bill that the credit expansion would apply only to "a very limited number of players." She said the increase was necessary to enable the casinos to compete with those in Connecticut and Massachusetts, which have some of the largest casinos in the United States.
The Senate Committee on Special Legislation suggested that a more in-depth study be conducted before voting on the legislation.
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Source: www.casino.org
