The Rhode Island Senate will soon vote on two bills that would close the state’s sports betting monopoly and increase punishments against illegal gamblers.
The Rhode Island Current reported that passage of the sports betting bill would lead to International Game Technology PLC losing its exclusive hold over Rhode Island sports betting it has enjoyed since 2019. The bill, if approved, would allow external operators to enter the market once IGT’s contract expires in November 2026.
Lawmakers have until the end of the legislative session on June 30 to pass both measures.
Senate bill now in House
The potential end of IGT’s sole control over the state market would open the door to major gaming brands such as FanDuel, DraftKings, BetMGM, Fanatics, and others.
Senate Majority Leader Frank Ciccone (D-District 7) is the primary voice pushing Senate Bill 748.
As noted by Legal Sports Report, his bill would direct the Rhode Island Lottery to award at least two but no more than five operating licenses, a step down from the original requirement of at least five licenses.
“It’s a way of cleaning it up,” Ciccone said in a Tuesday interview. “The Lottery was always looking at more than one option.”
The Senate Committee on Labor and Gaming, on which Ciccone is a chairman, recommended the sports betting expansion measure 7-0 during its Monday meeting. On Wednesday, the measure passed the full Senate and is now headed to the House.
A companion bill in the House, meanwhile, is stuck in the House Committee on Finance. House Speaker K. Joseph Shekarchi (D-District 23) said the bill was redundant due to IGT’s expiring contract in late 2026. Shekarchi said he would still review the Senate measure if it was approved by that body, which it was.
Ciccone is also pushing a bill that would implement a $1,000 minimum fine and one-year prison sentence for letting anyone under 21 place bets or play online casino games through Bally’s.
RI levies highest tax
Rhode Island was one of the first states to legalize sports betting. It launched in November 2018, expanding to online sports betting a year later.
Bettors have wagered $2.6 billion on sports since the launch. That has led to $222.1 million in revenue and $113.2 million in taxes based on the state’s steep 51% tax rate, which is tied with New Hampshire and New York for the highest in the country.
However, factoring in the mandatory 17% host facility fee means the effective tax rate in Rhode Island is actually 68%, by far the highest in the US.
The state Lottery on May 1 published a report from Spectrum Gaming Group, a gaming consultancy group that deals with the economic, policy, and regulation of sports betting markets. The report recommended the state add four to six new Rhode Island sportsbook operators to help develop its budding market.
Nearby states Massachusetts and Connecticut have seven and three vendors, respectively.
The Lottery said it will look to follow up with Spectrum early next year.
Rhode Island is not the only state that maintains a sports betting monopoly. The Seminole Tribe has sole authority over sports betting in Florida, while DraftKings is the only legal online sportsbook in New Hampshire and Oregon.
BetRivers is the lone online sports operator in Delaware.