News Summary
Rhode Island regulators are exploring the possibility of dismantling the state’s monopoly on online sports betting as interest from major operators grows. Currently, IGT holds exclusive rights through the Sportsbook RI app, which is set to expire in 2026. With increasing interest from renowned operators like DraftKings and FanDuel, discussions around competition and tax rates are becoming pivotal, especially considering recent service outages and high tax revenue. New legislation is anticipated for 2024, aiming to enhance the state’s sports betting landscape.
Rhode Island regulators are considering the possibility of dismantling the state’s monopoly on online sports betting in light of increasing interest from major operators. Earlier this year, the Rhode Island Department of Revenue Lottery Division issued a Request for Information (RFI) to gauge interest in permitting further operators to participate in the market.
Currently, the exclusive rights to operate online sports betting in Rhode Island belong to International Game Technology (IGT) through the Sportsbook RI app. This exclusive contract is set to expire in November 2026. By the August 22 deadline for responses to the RFI, eight sportsbook operators expressed their interest in entering the market, including notable names such as Bally’s, DraftKings, FanDuel, BetMGM, Fanatics, Kambi, and OpenBet.
In the last fiscal year, Rhode Island generated $14 million in tax revenue from IGT’s sports betting operations. Rhode Island has the highest effective tax rate in the nation on sports betting revenue, standing at 51%. This high tax rate, coupled with issues such as a significant 75-minute outage of IGT’s servers during the NFL season’s opening weekend, has raised concerns among both lawmakers and bettors about the current state of online sports betting in the state.
State lawmakers have previously addressed the topic of expanding the sports betting market. A bill introduced by Senator Frank Ciccone saw success in the Senate, passing with a vote of 30-3. However, this legislation did not progress in the House before the session concluded in June. Furthermore, a recent study by Spectrum Gaming Group, commissioned by the lottery, recommended the addition of three to five new operators to enhance the competition in the state’s sports betting market.
Rhode Island is not alone in having a monopolized sports betting market, as similar exclusive contracts exist in states such as Florida with Hard Rock Sportsbook, Oregon with DraftKings, New Hampshire with DraftKings, and Delaware with BetRivers. IGT officials contend that simply opening the market to additional operators does not guarantee increases in revenue. They have suggested that lowering the tax rates may be a more effective strategy to attract other companies and promote a healthy competitive market.
Indicators of a continued interest in diversifying the state’s sports betting landscape include legislation that has been introduced for 2024 aimed at dismantling IGT’s current monopoly. This ongoing legislative dialogue is fueled by criticism from various stakeholders. Critics, including lawmakers and bettors alike, argue that competition is vital for improving the betting experience and generating greater revenue for the state.
As Rhode Island regulators deliberated on a possible shift in policy regarding online sports betting, the state’s landscape may soon shift significantly. Increased competition may lead to enhanced services for bettors and potentially greater financial returns for the state.
Deeper Dive: News & Info About This Topic
- Card Player
- Wikipedia: Rhode Island
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- Google Search: Rhode Island sports betting
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Author: STAFF HERE PROVIDENCE WRITER
The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
