Rhode Island is home to only one exclusive mobile sportsbook, but a recent bill could open the market up to more operators, which would be beneficial to bettors in the Ocean State.
The More, The Merrier
Senate Majority Leader Frank Ciccone is the point person on Senate Bill 748, and if he and his colleagues can get their bill passed before the legislature ends on June 30th, Rhode Island will be opening its mobile betting market to more than just one provider.
As of this moment, the only mobile sportsbook in the Ocean State is Sportsbook Rhode Island, run by International Game Technology. However, if the lawmakers have their way, the market will open up to national players like Caesars, DraftKings, and FanDuel, giving Rhode Island sports bettors more of a choice than they have now.
The state lottery’s contract with International Game Technology expires in November 2026, which would give the regulatory authorities plenty of time to create new regulations or tweak the ones they have and onboard prospective operators.
Senate Rolls the Dice
Sportsbook Rhode Island began taking bets in 2019 and has generated $222.1 million in revenue on a $2.6 billion handle since that time. Rhode Island has collected $113.3 million in taxes from that money.
The Spectrum Gaming Group issued a report published through the lottery that recommended four to six mobile sportsbooks, which could have provided the impetus for Ciccone’s bill. SB 748 has been approved by the Senate and has now advanced to the House, where a companion bill has been stalled in the House Committee on Finance.
Although sports betting monopolies are rare, they are not unheard of. The common denominator is that these sportsbooks must agree to a high revenue tax in order to gain a monopoly on mobile sports betting. In Rhode Island, for example, the sports betting revenue tax is 51%, among the highest in the nation.
IGT Defends Its Monopoly
IGT has been alerted to the movement to open the market to more operators, but a spokesperson defended the company and criticized the 51% tax the state has been collecting. It was the only sports betting platform to submit a bid in 2019, as the onerous tax rate was a deterrent to other operators despite the exclusivity.
“The Rhode Island model outperforms many of its regional peers despite the presence of high-profile competitors in neighboring states,” IGT Senior Vice President Joe Bertolone wrote in Senate testimony. “This strong fiscal performance is not coincidental; it reflects the benefits of centralized operations, cohesive marketing, and product development through committed in-state operating partners. … The data strongly suggests that maintaining the current model is the most prudent course of action to safeguard and grow state revenues.”
Bertolino did contend that slashing the tax rate would increase the number of bettors due to better odds as well as increased marketing and promotion. Not surprisingly, national sportsbook DraftKings applauded the movement, although the company has not expressed a willingness to enter the market under the current tax rate.
“A marketplace with multiple choices for players leads to a better player experience – operators are forced to innovate while competing for business,” said a DraftKings spokesperson.
