Rhode Island lawmakers have moved to significantly expand the state’s online sports betting market, approving legislation that would replace its near-monopoly structure with multiple operators.
The Senate passed Senate Bill 3118 by a 30-6 vote on June 4, sending it to the House of Representatives for consideration. Co-sponsor Sen. Frank Ciccone III described the proposal as “an open invitation” for sportsbook applicants.
If enacted, the bill would allow Rhode Island to issue between four and six sports wagering vendor licences, expanding well beyond the current single-platform system.
From Single Operator to Open Market
Since 2019, Rhode Island has relied on Sportsbook Rhode Island, an online platform powered by IGT under an agreement running until 2028.
The state has already taken steps toward diversification. Bally’s Corporation is set to enter the market after IGT’s exclusivity ends in November, having been selected over a competing bid from BetRivers parent Rush Street Interactive.
SB 3118 extends that shift by authorising two to four additional operators. The bill states, “No later than Jan. 1, 2027, the division shall issue an open invitation to applicants for sports-wagering vendor contracts and then shall award additional sports-wagering contracts until the total number of individual sports-wagering vendors operating in the state is no less than four and no more than six,”.
Licensing and Market Competition
The Rhode Island Lottery would evaluate applicants based on product quality, technical capability, experience in other markets, consumer protection standards and regulatory compliance history. It would also consider each operator’s “commitment to maximizing state revenue and minimizing harm.”
The expanded market could attract major operators including FanDuel, DraftKings, Fanatics, BetMGM, bet365 and Caesars.
Tax Structure Changes
The bill introduces a revised taxation system for operators. IGT currently pays 51% of revenue to the state, among the highest rates nationally. That rate remains until sports wagering tax revenue matches fiscal year 2025 levels, after which a 12% tax would apply.
Operators’ revenue share would rise from 32% to 40.5% until the same threshold, then increase to 79.5% for the rest of the year.
The state’s two Bally’s-owned casinos would see their share reduced from 17% to 8.5%, with a guaranteed minimum of $4.5 million annually per property.
Previous Attempt and Industry Debate
A similar expansion bill passed the Senate in 2025 but failed in the House. That earlier proposal set a lower minimum of three operators.
IGT Senior Vice President Joe Bertolone previously warned lawmakers that multiple operators could reduce state revenue and increase regulatory complexity. He wrote that “Shifting to a market with multiple operators may appear attractive in theory, but in practice, it often results in reduced per capita revenue to states, fragmented oversight, and significant administrative and compliance costs,”.
If SB 3118 becomes law, it would take effect immediately, enabling a broader sports betting market in Rhode Island by 2027.
Source:
“Rhode Island Senate approves ‘open invitation’ to allow more sportsbooks”, sbcamericas.com, Jun 5, 2026
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