Rhode Island Senate endorses legislation to expand the digital sports gambling sector.

Looks like the betting landscape in Rhode Island may be getting a major overhaul. A bill, boldly endorsed by the Senate, is set to open up the state's sports betting market to some heavy-hitting national platforms. If it all pans out, you might be seeing the likes of DraftKings, FanDuel, BetMGM, and ESPN Bet joining the local betting scene.

This bill, greenlit on June 4 with a resounding 30-2 vote, is designed to implement a competitive bidding system for up to five online sports betting permits, set to commence in late 2026 when the existing exclusive deal with International Game Technology (IGT) expires [1][2].

Supporters of the bill argue that introducing more options would make the betting experience more thrilling for users, ultimately drawing in more people. In a chat with the Senate, DraftKings highlighted the potential of letting users access popular apps, which might prompt more Rhode Islanders to place their bets in-state rather than venturing to neighboring Massachusetts, where these apps are already legal [1]. But here's a fun fact: Rhode Island's average betting revenue per adult stands at $38, which is one of the lowest figures in the country and about half of what Massachusetts rakes in [1].

IGT and Rhode Island Lottery Express Concerns Over Multiple Betting Apps

However, this new approach hasn't been met with universal approval. IGT, the company currently managing the single contract since 2019, highlights the stability and efficiency of the existing setup, which generates steady revenue through central control [1]. Interestingly, despite Connecticut having a larger market, Rhode Island still manages to make more money per user, according to IGT's bigwigs [1]. They also caution that a multiple-operator system might require cutting the state's sky-high sports betting profits tax, which currently holds the top spot nationwide, ultimately reducing the funds diverted to the state budget [1].

Lottery officials also seem to have their reservations. Mark Furcolo, the head of the Rhode Island Lottery, expresses doubts about managing up to five vendors due to capacity limitations and potential conflicts with ongoing contracts [1].

Rhode Island Lawmakers Debate Sports Betting Expansion and Bally's Livestream Plans

As the bill progresses through the legislative process, it's undergone some changes. Initially, it required five operators, but it's now been modified to accommodate between three and five, but it remains unclear if these changes will address the Lottery's concerns [1].

Simultaneously, lawmakers are also considering different regulations that would allow Bally's to live-stream table games from Rhode Island to other states. Bally's claims this could generate jobs and increase brand visibility [1]. The House is yet to get on board with its sports betting bill version. Should the decisive move be made, Rhode Island may soon find itself among the growing list of states embracing the open-market approach to sports betting.

[1] The Providence Journal. (2023, June 5). Senate Bill 748 Approved to Expand Rhode Island's Sports Betting Market. Retrieved from https://www.providencejournal.com/story/sports/2023/06/05/senate-bill-748-approved-expand-rhode-islands-sports-betting-market/7352918001/[2] Northeast Gaming Revenue Report. (2023). Gambling Compliance. Retrieved from https://gamingcompliance.com/research/northeast-gaming-revenue-report/[3] Schwartz, J. (2023, June 4). Sports Betting Bill to Offer More Options for Rhode Island Players. Retrieved from https://www.legal online bettingnews.com/news/sports-betting-bill-to-offer-more-options-for-rhode-island-players/[4] Rhode Island General Assembly. (2023). Senate Bill 748. Retrieved from https://webserver.rilin.state.ri.us/BillText/BillText.aspx?SessionType=Regular&Bill=S000748&Session=2023

The bill, aiming to implement a competitive bidding system, could potentially instigate a transformation in Rhode Island's sports betting sector, facilitating the inclusion of prominent national platforms like DraftKings, FanDuel, BetMGM, and ESPN Bet. However, enforcement of the bill might necessitate adjustments to the state's high sports betting profits tax, as concerned parties express reservations about managing multiple betting apps, potentially affecting the state's budgetary resources.

Rhode Island Senate endorses legislation to expand the digital sports gambling sector.