Rhode Island lawmakers have introduced legislation aimed at expanding the state’s sports betting market while reshaping how wagering revenue is distributed. Senate Bill 3118 seeks to end the current single-operator model and open the market to multiple licensed sportsbook providers.
The bill was introduced by Democratic Senators Frank Ciccone, John Burke, and Stefano Famiglietti and entered the Senate on 13 May. It has been referred to the Senate Labour and Gaming Committee, with a hearing scheduled for 20 May. If approved, it would mark a major shift in the state’s gambling framework.
At present, Rhode Island operates a tightly controlled system in which online sports betting is limited to Sportsbook Rhode Island, according to Next.io. That platform runs under an exclusivity agreement between the Rhode Island Lottery and International Game Technology (IGT). Bally’s Corporation is expected to launch a second online sportsbook under a separate licence and already operates the state’s only retail betting venues in Lincoln and Tiverton.
Expansion Plan Targets Multi-Operator Market
Senate Bill 3118 proposes expanding both online and retail sports betting access to between four and six licensed operators. This would end the exclusive arrangement currently held by IGT and introduce a competitive licensing environment.
Rather than setting fixed fees, the bill outlines a model where sportsbook operators are selected through competitive bidding overseen by the Rhode Island Lottery. Applications would be judged on operational capability, regulatory history, technical standards, and revenue potential.
Operators would still need partnerships with land-based casinos. However, options remain limited, as Bally’s Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel are the only licensed casino venues in the state. The bill does not include provisions for new casino licences.
Tax and Revenue Structure Overhaul
The bill also proposes a major overhaul of Rhode Island’s sports betting tax model, currently among the highest in the United States. Online wagering is taxed at 51%, leaving operators with 49% of revenue.
Under SB3118, this structure would shift once FY25 benchmarks are met. The state’s share would fall from 51% to 12%, while the vendor share would rise from 32% to 79.5%. The host casino share would drop from 17% to 8.5%.
The restructuring reflects a shift toward increasing operator participation while maintaining oversight through the Rhode Island Lottery.
Regulatory Oversight and Next Steps
Despite the planned expansion, the Rhode Island Lottery would retain full oversight of the sports betting sector. It would remain responsible for managing licensing, evaluating applications, and ensuring compliance with technical and regulatory standards.
If the legislation is approved, the Lottery would be required to launch an open application process and award between four and six sportsbook vendor contracts no later than 1 January 2027.
The bill follows ongoing interest from major operators in entering the Rhode Island market, with several companies previously signaling readiness to participate if legislative changes allowed for increased competition. Lawmakers now face a decision that could redefine one of the most restrictive sports betting markets in the United States.
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