Rhode Island sports bettors only have one online option. They can only bet on the Sportsbook Rhode Island App provided by International Game Technology.
However, lawmakers took the first steps towards giving gamblers more online sports betting options. Soon, Rhode Island might have the same popular platforms that much of the U.S. already has access to.
When Rhode Island legalized sports betting in 2019, the plan allowed only for a single operator. But as lawmakers look for ways to increase sports betting tax revenue, the state’s market could have more competition on the way.
DraftKings Voices Support For Bill
International Game Technology (IGT) currently offers betting through the Sportsbook Rhode Island app. However, the state senate approved a bill this week that would allow larger national companies to operate in the state.
SB748 would end the agreement with IGT when the contract expires next year and allow the state lottery to accept bids for up to five different operators.
The Senate passed the plan by a 30-2 margin. Additionally, one of the country’s largest sportsbooks threw its support behind it.
“The bill would allow Rhode Island residents to play on their favorite apps, while increasing tax revenue,” DraftKings noted in committee testimony. “A marketplace with multiple choices for players leads to a better player experience – operators are forced to innovate, while competing for business.”
State Already Has Country’s Highest Tax Rate
IGT opposes the plan, noting that ending the company’s contract doesn’t guarantee additional revenue. Rhode Island also has the highest tax rate in the country, levying 51% on sports betting revenue as well as a 17% “host facility” fee to Bally’s.
The gaming company owns the state’s two brick-and-mortar casinos and hosts IGT’s servers as the law requires sports betting operators to house servers in a casino within the state. IGT was the only company to submit a bid in 2019 and said the state would have to cut the tax rate to bring in more operators, according to the Providence Journal.
“The Rhode Island model outperforms many of its regional peers despite the presence of high-profile competitors in neighboring states,” IGT Senior Vice President Joe Bertolone noted in senate testimony. “This strong fiscal performance is not coincidental; it reflects the benefits of centralized operations, cohesive marketing and product development through committed in-state operating partners. The data strongly suggests that maintaining the current model is the most prudent course of action to safeguard and grow state revenues.”
Rhode Island lottery officials have also expressed concerns about the plan. Lottery Director Mark Furcolo said the bill shouldn’t block the agency from renewing the agreement with IGT if it’s the best deal available. He has also noted that the lottery isn’t large enough to manage a more robust market that could include five operators.
A House version of the bill remains in committee. Spectrum Gaming recently released a report commissioned by the lottery that outlined suggestions for a more open market. Those included allowing bids this year to gauge prospective operators, reducing the tax rate to 30%, and reducing the Bally’s hosting fee.
