Senate Bill 748, sponsored by Sen. Frank Ciccone, proposed ending IGT’s exclusive contract and expanding the market to 3–5 sportsbooks as early as 2026.

The Senate passed Ciccone’s bill in early June with a 30-3 vote. However, once it reached the House, it never received a committee hearing. The legislative session ended on June 21, effectively killing the effort for the year.

House’s Rejection Is Not a Surprise

The bill’s failure in the House does not come as a surprise to many.

In May, House Speaker K. Joseph Shekarchi stated that he’s not interested in discussing market expansion this year, as the IGT contract doesn’t expire until 2026. He told the Rhode Island Current:

“There is no need to adopt legislation this year because the state is under contract with the current vendor for another year.”

IGT and Lottery Opposed Expansion

The House’s lack of interest could also be attributed to opposition from IGT. The company claimed that bringing more operators to the state wouldn’t necessarily increase revenue for Rhode Island.

In a Senate testimony, IGT Senior VP Joe Bertolone stated that the Rhode Island model outperforms neighboring states with multi-license systems.

The Rhode Island Lottery, which oversees sports betting, also had some concerns. Director Mark Furcolo questioned whether invalidating the extension option for the IGT contract might violate state laws. He added that the lottery doesn’t have the capacity to manage five operators.

Still, Furcolo signaled a willingness to consider alternatives. Later, he informed the legislative committee overseeing the state’s gambling sector that the lottery intends to issue a request for information (RFI) in early 2026.

Market Expansion Aligned With a Spectrum Gaming Report

The Senate approval of the bill came on the heels of a Lottery-commissioned Spectrum Gaming Report.

The report recommended that Rhode Island award four to six mobile sportsbook licenses to align with other New England states. Still, it also highlighted that the state must lower its 51% tax to attract potential licensees effectively. Notably, Ciccone’s bill did not propose any tax adjustments.

In addition to the 51% tax on gross gaming revenue, the IGT-powered Sportsbook Rhode Island pays a 17% server hosting fee to Bally’s Corporation.

Rhode Island’s tax is the highest in the US, along with New York and New Hampshire. However, given that New York is the biggest market in the country, most top operators have agreed to pay that.

Meanwhile, New Hampshire negotiated the rate with DraftKings for a market monopoly. Additionally, the state offers DraftKings various tax breaks.

The post Rhode Island’s Push To End Sports Betting Monopoly Dies In House appeared first on CasinoBeats.

While the state was among the first to legalize sports betting in 2019, it opted for a one-operator system, with Sportsbook Rhode Island serving as the sole platform. 

Gaming and lottery giant International Game Technology (IGT) currently runs Sportsbook Rhode Island on a contract until 2026.

Rhode Island One-Operator Sports Betting System Under Pressure

The spectrum report indicates that all other New England states have multiple sports betting skins. However, to attract operators like DraftKings and FanDuel, Rhode Island must lower its taxes.

The Ocean State, New Hampshire, and New York have the highest tax rate in the US at 51%. Additionally, Sportsbook Rhode Island pays a 17% server hosting fee to Bally’s Corporation. The high tax could have contributed to IGT being the only bidder in 2018.

The Rhode Island Lottery is starting to consider the recommendations. According to the Rhode Island Current, Director Mark Fucolo has informed the legislative committee overseeing the state’s gambling sector that the lottery intends to issue a request for information (RFI) in early 2026.

Lottery spokesperson Paul Grimaldi told the news outlet that the RFI is intended to determine whether there is interest and from which companies.

Lawmakers Push for Market Expansion in 2026

Given that the IGT contract expires late next year, some lawmakers, such as House Speaker K. Joseph Shekarchi, are not interested in discussing it in 2025.

However, others, such as Senate Majority Leader Frank Ciccone and Rep. Matthew Dawson, are already working on the matter. Ciccone introduced SB 748 in the Senate, while Dawson introduced a companion bill in the House. The proposal calls for five sports betting platforms, which could launch on July 1, 2026.

If enacted, SB 748 would prohibit the Rhode Island Lottery Commission from renewing the IGT contract after July 1, 2026. 

The legislation would also require the commission to open invitations to potential license candidates before IGT’s contract expires. Moreover, it must ensure all licensed operators meet regulatory qualifications.

One big provision missing from SB 748 is the 51% tax rate, which, as Spectrum points out, might deter potential suitors.

The bill was reviewed at a hearing of the Senate Committee on Labor and Gaming (which Ciccone chairs) on April 30. Meanwhile, the House Committee on Finance reviewed Dawson’s bill on May 1. Both proposals were held for further study, a standard procedure.

Could Online Casino Reforms Follow?

In addition to the high tax, operators like DraftKings and FanDuel might show little interest in a Rhode Island sports betting license because it won’t give them access to iGaming.

Like sports betting, Rhode Island operates on a monopoly system for iGaming. The state legalized online casinos in 2023 and awarded Bally’s Corp. the only license. Bally Casino launched in March 2024.

If changes eventually come to sports betting in Rhode Island, questions could arise regarding iGaming. Such a proposal could generate interest as Bally Casino has underperformed since its launch.

After a slow start, the online casino never caught on to match forecasts. For 2024, Bally Casino generated under $22 million in net revenue. For comparison, the initial estimates by Christiansen Capital Advisors, commissioned by the Rhode Island Department of Revenue, were $58.9 million, more than double the actual number.

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