Rhode Island Senate Approves Sports Betting Expansion Bill
The Rhode Island Senate has approved legislation that would significantly alter the state's sports betting framework by dismantling its current single-operator model in favor of a competitive multi-operator system. On June 4, the Senate passed the measure by a vote of 30-2, signaling broad support for a shift that could allow national gambling platforms such as DraftKings, FanDuel, and BetMGM to enter the state's regulated market once the current contract with International Game Technology (IGT) expires in 2026.
LISTEN TO THIS ARTICLE:Since it launched legal sports betting, Rhode Island has operated under a unique system that permits legal wagering only through a single mobile app, Sportsbook Rhode Island, operated by IGT in partnership with Bally's. While this exclusive arrangement was initially designed to maximize state revenue through high tax rates and centralized oversight, critics have increasingly pointed to technological limitations and lack of consumer choice as major shortcomings of the current system.
Related: Rhode Island Sports Betting Handle Sees Drop in FebruaryThe legislation would prohibit the Rhode Island Lottery from renewing IGT's exclusive agreement and instead require the state to solicit bids from other vendors. It would open the door for up to five different sports betting platforms to operate in Rhode Island, offering residents greater variety in how and where they place wagers.
The bill was amended prior to passage to require the Lottery to issue no fewer than three and no more than five licenses, in an effort to strike a balance between competition and regulatory capacity.
Supporters of the bill argue that expanding the number of available platforms would modernize the state's sports betting market and make it more competitive with neighboring states like Massachusetts and Connecticut. In committee testimony, DraftKings said that Rhode Island's current per capita spending on online sports betting is among the lowest in the country, at $38 per adult. The company contends that a multi-operator model would encourage innovation and improve the user experience, thereby increasing participation and state tax revenue.
IGT, however, has defended the current system, stating that Rhode Island already earns strong returns from its sports betting operation. The company emphasized that it pays 51% in revenue-sharing taxes, in addition to a 17% host fee to Bally's, making it the highest-taxed sports betting operator in the nation.
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Company executives have also argued that these centralized operations allow for cohesive marketing and consistent product development, which benefit both players and the state's bottom line. IGT has warned that introducing more operators would likely require Rhode Island to cut tax rates, potentially reducing state income even if wagering volume increases.
Rhode Island Lottery officials have voiced concerns about the proposed changes, particularly the agency's capacity to manage multiple vendors. Lottery Director Mark Furcolo noted that invalidating the option to extend IGT's contract could conflict with constitutional contract protections. He also said that the Lottery currently lacks the infrastructure to oversee more than one or two vendors and warned that expanding to five platforms could overextend the agency's administrative resources.
The House version of the bill, introduced by Rep. Matthew Dawson, remains under committee review and has not yet been amended to match the Senate's revised language. At the same time, a separate Lottery-commissioned report by Spectrum Gaming Group has recommended that the state explore alternatives by opening a bidding process before the end of 2025. The report also suggested integrating the state's sports betting and online casino operations into a single platform and lowering tax rates to encourage vendor participation.
In addition to the sports betting legislation, Rhode Island lawmakers are also considering proposals that would permit Bally's to live stream its casino games to players in other states. A House bill introduced by Rep. Scott Slater would authorize such operations, while the corresponding Senate version was scheduled for a vote that was postponed in May.
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