If Rhode Island senators get their way, the state’s sports betting market will soon look very different.
On Wednesday night, the full Senate passed an amended version of SB 748, which would change the state’s current sports wagering monopoly to a multiple-sportsbook market comprising three, four or five commercial operators.
Currently, the state’s only legal online sports betting platform is Sportsbook Rhode Island, which is run by International Game Technology (IGT) on behalf of the Rhode Island Lottery.
However, the proposal sponsored by Senate Majority Leader Frank Ciccone would allow the state to issue several licenses for online sportsbooks through a competitive bidding process. That would clear the way for Rhode Island to potentially welcome in big names such as FanDuel, DraftKings, BetMGM and others.
Originally, Ciccone’s bill required the state to license a minimum of five online sportsbooks. That was then changed to a minimum of two but a maximum of a five, before an amendment put forth by Ciccone and approved by the Senate increased that minimum number to three.
Per the amended version of the legislation, the IGT’s contract with the Lottery would not be renewed after Jan. 31, 2026, five months earlier than the initial stipulated date of July 1.
The amendment passed unanimously before the bill itself passed by a 30-2 vote in a quick process on Wednesday night. It will now go before the House. Rhode Island’s legislative session is set to end on June 30.
IGT and Lottery say they shouldn’t be shut out
Unsurprisingly, the move has the support of commercial sportsbooks.
DraftKings wrote in committee testimony earlier this year that opening up the market would increase both choice for consumers and tax revenue for the state, and would also force operators to innovate in a bid to compete with rivals.
However, senior figures at both IGT and the Lottery expressed concerns about shutting the door on the current partnership entirely. Rhode Island effectively taxes IGT at 51%, the highest sports betting tax rate in the U.S. That means that despite the lack of competition, and although sports betting handle and operator revenue are comparatively low on the nationwide scale, Rhode Island makes more tax money from sports wagering than several larger and more competitive markets.
The Senate-approved bill, even in its amended form, does not address what the tax rate would look like for licensed sportsbooks coming into an opened market.
“The Rhode Island model outperforms many of its regional peers despite the presence of high-profile competitors in neighboring states… ” wrote IGT SVP Joe Bertolone in Senate testimony that was submitted before the amendment, as reported by local media. “The data strongly suggests that maintaining the current model is the most prudent course of action to safeguard and grow state revenues.”
Lottery Director Mark Furcolo added in his own wrtten testimony that the Lottery should not be prevented from continuing to work with IGT if that is the best deal for the state.
