Rhode Island Bill Seeks to End Sports Betting Monopoly

A recently introduced bill in the Rhode Island Senate could bring significant changes to the state’s sports betting industry. Senate Bill 748, filed on Friday, proposes ending the current exclusive contract held by IGT, paving the way for at least five operators to enter the market.

Rhode Island was among the first states to legalize sports betting in 2018 after the U.S. Supreme Court overturned a federal ban. The state granted an exclusive license to IGT, a UK-based company with a large workforce in Rhode Island. IGT initially secured a five-year contract, later extended by three more years in 2023.

If passed, this bill would block any further renewals of IGT’s contract when it expires in 2026. This would open the market to major betting operators such as FanDuel, DraftKings, and BetMGM, creating a more competitive landscape for online sports betting in the state.

Potential Challenges for Expansion

The push for competition comes shortly after Apollo Global Management acquired IGT’s gaming operations in a $4 billion cash deal. This acquisition included Rhode Island’s exclusive sports betting contract and a 20-year agreement to manage the state lottery.

While lawmakers may believe IGT’s Sportsbook Rhode Island app would benefit from market competition, challenges remain. Rhode Island has one of the highest sports betting tax rates in the country at 51%, comparable to New York and New Jersey. This steep rate could discourage operators from entering the market, making it difficult to meet the bill’s five-operator goal in such a small state.

Though the bill has four Democratic sponsors, its passage remains uncertain. Rhode Island’s Democratic-majority Senate (34-4) and House (64-10) may support the bill in theory, but political priorities could delay its progress.

Senate Bill 748 has been sent to the Senate Labor and Gaming Commission, which has over 30 pending bills and only three months left in the legislative session. Whether lawmakers prioritize this bill remains to be seen, but Rhode Island’s sports betting future could shift dramatically if it moves forward.