Rhode Island Eyes End to Sports Betting Monopoly with New Bill
Rhode Island’s sports betting scene, one of the few state-run monopolies in the U.S., might soon face a shake-up. A group of four senators has introduced SB 748, a bill aimed at dismantling the exclusive deal with International Game Technology (IGT) and opening the door to at least five competing sportsbooks.
Breaking Up the Exclusive Club
Led by Senators Frank Ciccone, John Burke, Todd Patalano, and David Tikoian, SB 748 sets a clear timeline. Starting July 1, 2026, the state’s lottery division would let IGT’s contract lapse, no renewals allowed.
Before that date hits, the division would invite applications for sports betting licenses and hand out a minimum of five to qualified vendors. The goal is straightforward: crank up competition, boost options, and spread the revenue pie.
The bill doesn’t stop at cracking the monopoly. It spells out the division director’s powers, from setting odds and payout rules to regulating online bets and tackling fraud. Operators would also need to step up, with mandates for security, financial oversight, and age-verification systems to keep gambling in check.
The Monopoly’s Track Record
Rhode Island’s setup, branded simply as “Sportsbook Rhode Island,” kicked off in September 2019 with IGT’s PlaySports platform at its core. Early ties to William Hill (later scooped up by Caesars) muddied branding waters, though Caesars now powers the mobile side.
The monopoly’s delivered steady cash—$2.5 billion wagered and $214 million in revenue since launch, netting the state $110 million in taxes at that hefty 51% clip. Still, February 2024 showed a dip, with a $38.8 million handle (78.4% online) yielding just $2.9 million in revenue, down 42% from January’s $5 million.
That high tax rate, among the nation’s steepest, has kept IGT cozy without rivals. But compared to bustling markets like New Jersey, Rhode Island’s numbers look tame, a small state punching below its weight, some argue.
A Shift with Teeth
SB 748 hands the lottery division firm control to standardize betting practices across the board. That includes approving bet types, policing irregularities, and ensuring operators report data and protect funds. It’s a framework built to balance growth with guardrails, especially as online wagering takes center stage.
Rhode Island’s current setup leans on IGT, tied to brick-and-mortar spots like Twin River Casino. Opening the market could lure big names like DraftKings or FanDuel, hungry for a slice of a state that’s kept its betting doors tight since legalizing it in 2018. More operators mean more choices for bettors and, likely, a bigger tax haul for the state.
The monopoly’s been a rare bird, most states let multiple sportsbooks slug it out. Rhode Island’s stuck with IGT, funneling all bets through one pipe. SB 748’s backers see a chance to modernize, arguing competition could juice revenue and keep pace with neighbors like Massachusetts and Connecticut, where multi-operator markets thrive.
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