Rhode Island legislators are exploring a significant revamp of the state’s sports betting regulations, potentially ending its current single-operator model to allow competition from national gaming companies.
A Senate bill approved on June 4 aims to stop the Rhode Island Lottery from renewing its exclusive agreement with International Game Technology (IGT). Instead, the proposal would mandate a competitive bidding process for contracts involving three to five sports betting operators starting in 2026.
If the House also approves this legislation, it would break the monopoly currently held by the Sportsbook Rhode Island app, operated by IGT, which has remained the only legal online sports betting platform in the state since its inception. While popular platforms like DraftKings and FanDuel thrive in neighboring states, they remain unavailable in Rhode Island.
Supporters of the bill contend that increasing competition would enhance player experiences and boost tax revenues. “A competitive marketplace provides players with better options—operators will have to innovate to attract business,” stated DraftKings in its submitted testimony.
The company highlighted that Rhode Island is among the lowest in the country for per-capita online sports betting revenue, averaging just $38 per adult, which is about half of Massachusetts’s figures.
The bill, designated SB 748, passed the Senate with a resounding 30 to 2 vote. However, it faces strong opposition from IGT and some state officials. IGT’s Senior Vice President Joe Bertolone defended the company’s performance in written testimony: “The Rhode Island model consistently outperforms many of its regional counterparts, even with high-profile competitors nearby.”
He further argued that IGT’s centralized operation, taxed at 51% of revenue plus a 17% fee to Bally’s, offers substantial fiscal returns, cautioning that competition could pressure the state to reduce tax rates, which would ultimately diminish public revenue.
IGT cautioned that while a competitive environment might increase wagering volumes in Rhode Island, a larger share of those funds could go to operators instead of state coffers. Rhode Island currently generates $17.44 in revenue per person, in contrast to Connecticut’s $9.78 under a multi-operator model.
The Rhode Island Lottery has echoed these concerns. Lottery Director Mark Furcolo indicated that preventing the agency from renewing IGT’s contract could infringe upon constitutional contract protections. He also expressed worries about the Lottery’s capacity to oversee multiple operators.
In response to the Lottery’s concerns, the Senate amended the bill. The initial draft called for “at least five” operators; it was revised to allow “not less than three but not more than five.” It remains uncertain if this modification addresses the Lottery’s logistical fears. The House’s version of the bill, spearheaded by Rep. Matthew Dawson (D-East Providence), is still under committee review.
In other gambling-related news, Rep. Scott Slater (D-Providence) has introduced House Bill 6388, which would permit Bally’s to stream its casino games to other states. A similar bill in the Senate was previously delayed. Bally’s asserts that this legislation could lead to increased job opportunities and enhance national visibility for Rhode Island’s gaming industry.