Rhode Island is preparing to dismantle its exclusive sports betting arrangement. Senate Bill 3118 would open the market to between four and six licensed operators, effectively ending International Game Technology’s monopoly over the state’s online sportsbook operations. The legislation comes from Democratic Senators Frank Ciccone, John Burke, and Stefano Famiglietti.

Breaking the Current Exclusive Deal

Right now, Sportsbook Rhode Island operates as the sole licensed online platform under an exclusive contract between the Rhode Island Lottery and IGT. That stranglehold has kept potential competitors out despite genuine market interest. Back in October, eight major operators publicly expressed interest in entering Rhode Island’s market if regulations changed. SB3118 would finally give them that opportunity.

How the New Market Would Work

Rather than simply adding operators under existing terms, the bill proposes a competitive bidding process. The Rhode Island Lottery would evaluate applications based on operational capability, regulatory track record, technical standards, and revenue potential. Licensing fees wouldn’t be fixed; instead, operators would negotiate through the competitive process.

Here’s the problem though. New entrants would likely need to partner with an existing land-based casino. With only Bally’s Lincoln Casino Resort and Bally’s Tiverton Casino and Hotel licensed in Rhode Island, opportunities remain genuinely limited. The bill doesn’t create pathways for additional casino licenses, so physical partnerships will be the real bottleneck.

A Dramatic Tax Restructure

The financial incentives here are substantial. Currently, the state takes 51% of online sports betting revenue, leaving operators with just 49%. That’s among the highest tax rates in the country and a genuine disincentive for market entry.

SB3118 changes that picture considerably. Once FY25 revenue targets are met, the state’s share would drop to 12%, with operators taking 79.5% and host casinos receiving 8.5%. It’s a dramatic rebalancing that effectively trades short-term state revenue for market growth and operator viability.

Timeline and Next Steps

The Senate Labour and Gaming Committee has scheduled a hearing for 20 May. If the bill passes, the Rhode Island Lottery would need to launch its open application process by 1 January 2027. That’s ambitious but workable, giving operators clear timelines to prepare their proposals.