Rhode Island Senate Passes Bill To Expand Sports Betting

The Rhode Island Senate has approved Senate Bill 748, paving the way for increased competition in the state’s sports betting sector by allowing multiple licensed operators. This legislative move aims to dismantle the current monopoly held by International Game Technology (IGT), which has exclusively managed sports betting in Rhode Island since a 2019 agreement.

### Key Provisions of Senate Bill 748

Under Senate Bill 748, the Rhode Island Lottery will solicit bids from at least three and up to five new sports betting operators, broadening the landscape of wagering options available to residents. If enacted, these changes could enable new platforms to commence operations as early as July2024. The Senate voted decisively in favor of this proposal, with a 30-2 tally reflecting strong bipartisan support for the initiative.

### IGT’s Opposition and Market Dynamics

IGT has voiced significant opposition to this proposal, citing its 2019 contract that grants it exclusive rights to the state’s sports betting market, a contract that extends until November 2026. IGT argues that maintaining this monopoly is critical for the state’s fiscal health, emphasizing that Rhode Island has generated approximately $2.5 billion in bets and over $214 million in revenue since the inception of sports betting, contributing around $110 million in tax revenue.

Joe Bertolone, Senior Vice President at IGT, defended their model in Senate testimony, noting:

> “The Rhode Island model outperforms many of its regional peers despite intense competition in neighboring states. This performance is a result of centralized operations and cohesive marketing strategies with committed local partners.”

However, the state has witnessed a decline in revenue in recent years. Following a peak betting handle of $532 million in 2022, figures fell to $461 million in 2023, with projections indicating further decreases for 2024. Gross gaming revenue followed suit, decreasing from $49 million in 2022 to an anticipated $37 million in 2024.

### Opportunities for DraftKings and Industry Innovation

Amid the proposed legislative changes, DraftKings has positioned itself favorably, expressing enthusiasm for potential market expansion. The company estimates that Rhode Islanders currently spend an average of only $38 per adult resident on sports betting, significantly lower than neighboring markets like Massachusetts.

In committee testimony, DraftKings stated:

> “We believe Rhode Island can unlock its full market potential with Senate Bill 748. This bill will allow residents to access their preferred apps while boosting tax revenue.”

The company also highlighted the benefits of a diversified marketplace, asserting that increased competition would enhance the player experience, urging operators to innovate and differentiate their offerings.

Despite the notable tax burden imposed on sportsbooks—currently the highest in the nation at a rate of 51%—DraftKings remains undeterred, indicating a strong belief in the potential profitability of the Rhode Island market.

### Legislative Path Forward

While the Senate bill has advanced, its fate now hinges on a parallel bill in the House. Should this legislation receive approval, it will only require the signature of Governor Dan McKee to finalize the opening of Rhode Island’s sports betting market next year.

As the gambling landscape continues to evolve, monitoring these developments will be crucial for industry stakeholders eager to capitalize on emerging opportunities in both Rhode Island and across the U.S.

### Conclusion

The potential shift towards a more competitive sports betting environment in Rhode Island highlights a significant turning point in the state’s gambling landscape. As discussions progress, the implications for revenue generation, operator innovation, and consumer experience will be pivotal in shaping the future of sports betting in the region.

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Adam Roarty is a seasoned writer with extensive experience in the gambling sector. He has contributed as a content writer and editor for five years on platforms like Oddschecker, CoinTelegraph, and Gambling Industry News. Aware of emerging trends and legislative changes, Adam focuses on uncovering the evolving narratives within the U.S. betting industry, including the latest on prediction markets, legislative adjustments, and sweepstakes.