Rhode Island moved nearer to ending its single-operator sports activities betting mannequin after the state Senate permitted laws that might convey a number of new sportsbooks into the market and overhaul the best way betting income is distributed.
Lawmakers handed Substitute A to Senate Invoice 3118 on Thursday (June 4). The measure, launched by Sens. Frank Ciccone, John Burke, and Stefano Famiglietti, would revise state legal guidelines protecting sports activities wagering, desk video games, and video lottery operations.
The proposal builds on a wider debate that has been underway in Rhode Island for greater than a 12 months. Since sports activities betting launched in 2019, Worldwide Recreation Expertise has operated beneath an unique association that successfully gave the corporate management of the state’s sports activities wagering market. Business observers have lengthy considered Rhode Island as one of many few remaining states with a sportsbook monopoly.
Rhode Island opens the market to extra sports activities betting operators
Below the invoice, the Rhode Island Lottery Division can be required to hunt extra sportsbook companions. The laws says, “No later than January 1, 2027, the division shall situation an open invitation to candidates for sports-wagering vendor contracts after which shall award extra sports-wagering contracts till the overall variety of particular person sports-wagering distributors working within the state is a minimum of 4 (4) and not more than six (6).”
State officers would consider candidates based mostly on technical functionality, regulatory compliance information, expertise in different jurisdictions, and their potential to generate income whereas limiting gambling-related hurt. Any permitted operators would face licensing obligations, audits, and shopper safety necessities.
The thought of increasing competitors isn’t new. Earlier laws launched in 2025 proposed changing the unique IGT association with a system that might award at the least 5 sportsbook licenses. It mirrored rising curiosity in attracting main nationwide manufacturers and rising total betting exercise.
The newest invoice additionally redraws the revenue-sharing formulation. Present legislation offers sportsbook distributors 32% of sports activities wagering income and host services 17%. The brand new construction would shift extra income towards operators whereas decreasing the share going to host casinos.
The state would gather 51% of sports activities wagering and on-line sports activities wagering income till it receives an quantity equal to fiscal 12 months 2025 income ranges. After that time, the state’s share would drop to 12%.
Distributors would obtain 40.5% till the benchmark is reached. Afterward, “the state’s licensed sports-wagering distributors shall obtain seventy-nine and one-half % (79.5%) of sports-wagering and on-line sports-wagering income.”
Host services would obtain 8.5% of income, with a assured minimal annual fee of $4.5 million. Lincoln and Tiverton would proceed receiving $200,000 every as host communities.
The measure additionally offers operators extra management over promotional exercise. It states that “a sports-wagering vendor shall be permitted to make operational choices with regard to advertising, promoting, and promotions” so long as these actions comply with permitted plans and laws.
In line with the invoice’s clarification, the measure “would redefine sports activities wagering sections and particularly change the % the host services would obtain on sports activities wagering.”
The laws would take impact instantly upon passage.
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