In addition, NFL Commissioner Roger Goodell has announced that based on the new video evidence he has indefinitely suspended Rice.
"We requested from law enforcement any and all information about the incident, including the video from inside the elevator," NFL spokesman Greg Aiello said Monday morning. "That video was not made available to us and no one in our office has seen it until today."
Many immediately questioned whether Rice's initial two-game suspension was too lenient of a punishment for the fight between him and Janay Palmer, his then-fiancee, now wife. It turns out it was.
The Ravens said earlier Monday that they never saw the new video. Hours later, they sent out a one-sentence release:
"The Baltimore Ravens terminated the contract of RB Ray Rice this afternoon."
Meanwhile Rutgers University, where Rice starred in college, has decided to remove him from the "Knights in the NFL" video shown before games.
"He is out of that," Rutgers' chief spokesman, Pete McDonough, told ABC News.
Rutgers is now reviewing the rest of his promotional materials to see what, if anything, includes Rice.
McDonough said "He won't appear in anything."
The graphic video, obtained by TMZ, shows Rice striking Palmer, knocking her to the ground of an Atlantic City casino elevator. Previously released video from the February incident had shown Rice dragging Palmer out of the elevator.
CLICK HERE to watch the TMZ video.
The NFL told ABC News in a statement that it was the first time they were seeing the video. An employee of the hotel where the incident took place told TMZ that the NFL had access to the footage prior to its suspension ruling. ABC News reports NFL commissioner Roger Goodell apologized for the ruling in a letter to NFL owners, saying, "I take responsibility both for the decision and for ensuring that our actions in the future reflect our values."
In the wake of the backlash to Rice's two-game suspension, Goodell has revamped the league's domestic violence policy, making it a six-game suspension for first time offenders and a lifetime ban for a second offense.
Rice has called the elevator incident "the biggest mistake of my life." He is currently participating in a pre-trial diversion program and counseling.
Rutgers football coach Kyle Flood commented: "The video I saw this morning was difficult to watch as a husband and a father. There is nothing that can justify what I saw on that video. This is a sad day for Ray and a sad day for Rutgers."
"Family is family. But at Rutgers we hold ourselves to an extremely high standard. And we expect a lot of out of players. We expect a lot of our coaches and our staff members we have here in the Hale Center. And we expect a lot of our alumni and because of those expectations this is a sad day."
The 27-year-old Rice was charged with felony aggravated assault in the case, but in May he was accepted into a pretrial intervention program that allowed him to avoid jail time and could lead to the charge being purged from his record.
Celebrities shared their reactions to this latest video and the fallout.
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(Some information in this story is from the Associated Press.)