The bill amends Chapter 42-61.2 of the General Laws, which governs "Video Lottery Games, Table Games and Sports Wagering," by introducing key definitions related to sports wagering. It establishes conditions for conducting sports wagering activities, including the authority for the state to issue sports-wagering vendor contracts.

The bill modifies revenue calculations for online sports wagering, specifying that for contracts entered into on or after the effective date, revenue will be calculated as the total cash or cash equivalents received from online sports wagering minus payouts to players and any applicable federal excise taxes. For contracts entered into prior to the effective date, the previous calculation method will continue to apply.

Additionally, the bill allows sports-wagering vendors to make operational decisions regarding marketing, advertising, and promotions, and to offer and accept wagers using promotions, bonuses, or cash equivalents without regard to the jurisdiction where they were initially offered.

The bill outlines a new revenue allocation structure, where the state will receive 12% of sports-wagering and online sports-wagering revenue after the state has received the amount generated in the fiscal year 2025. Authorized sports-wagering vendors will receive 79.5% of the revenue after the same threshold, while host facilities will receive 8.5% of the revenue, provided they have received $4,500,000.

No later than January 1, 2027, the division shall issue an open invitation for sports-wagering vendor contracts and award no less than four and no more than six contracts. Each selected vendor will be subject to licensing requirements, ongoing compliance audits, and consumer protection standards. The request for proposals will prioritize vendors based on technical capability, regulatory compliance history, experience in other states, and commitment to maximizing state revenue and minimizing harm.

The division is required to promulgate rules and regulations necessary to implement these provisions within 90 days of the effective date of the section.