Rhode Island Senate approves expansion of sports betting market

Rhode Island moved closer to ending its single-operator sports betting model after the state Senate approved legislation that would bring several new sportsbooks to the market and overhaul how betting revenue is distributed.

On Thursday (June 4), lawmakers passed Substitute A to Senate Bill 3118. The measure, introduced by Senators Frank Ciccone, John Burke and Stefano Familiati, would overhaul state laws covering sports betting, table games and video lottery operations.

The proposal builds on a broader debate that has been going on in Rhode Island for more than a year. Since launching in the sports betting market in 2019, International Game Technology has operated under an exclusive agreement that effectively gives the company control over the state’s sports betting market. Industry watchers have long viewed Rhode Island as one of the few remaining states with a monopoly on sports betting.

Rhode Island is opening up the market to more sports betting operators

Under the bill, the Rhode Island Lottery Department would have to seek additional sports betting partners. The legislation states: « Not later than January 1, 2027, the department shall issue an open solicitation to applicants for sports betting vendor contracts and thereafter award additional sports betting contracts until the total number of individual sports betting vendors operating in the state is not less than four (4) and not more than six (6). »

State officials will evaluate applicants based on technical capabilities, regulatory compliance records, experience in other jurisdictions and their ability to generate revenue while limiting gambling-related harm. All approved operators will face licensing obligations, audits and consumer protection requirements.

The idea of ​​expanding competition is not new. Earlier legislation, introduced in 2025, proposed replacing the exclusive IGT agreement with a system that would grant at least five sports betting licences. This reflects a growing interest in attracting major national brands and an increase in overall betting activity.

The latest bill also redraws the revenue sharing formula. The current law gives sports betting sellers 32% of sports betting revenue and hosting facilities 17%. The new structure will shift more revenue to operators while reducing the share that goes to hosting casinos.

The state will collect 51 percent of sports betting and online sports betting revenue until it receives an amount equal to fiscal year 2025 revenue levels. After that point, the state’s share will drop to 12%.

Suppliers will receive 40.5% until the benchmark is reached. Thereafter, « state-authorized sports betting providers will receive seventy-nine and one-half percent (79.5%) of sports betting and online sports betting revenue. »

Host facilities will receive 8.5% of revenue with a guaranteed minimum annual payment of $4.5 million. Lincoln and Tiverton will continue to receive $200,000 each as host communities.

The measure also gives operators more control over promotional activity. It states that « a sports betting seller will be permitted to make operational decisions regarding marketing, advertising and promotions » as long as these activities follow approved plans and regulations.

According to the bill’s explanation, the measure « would redefine the sports betting sections and specifically change the percentage that home facilities will receive for sports betting. »

The law will enter into force immediately after its adoption.

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