Rhode Island Senate Bill 3118 Aims to Terminate State’s Sports Betting Monopoly

(AsiaGameHub) –   Introduced by Democratic Senators Frank Ciccone, John Burke, and Stefano Famiglietti, Senate Bill 3118 (SB3118) aims to expand Rhode Island’s online and retail sports betting market by permitting up to six licensed operators.

New Bill Aims to Change Rhode Island’s Monopoly on Online Gambling

The bill seeks to significantly broaden the state’s sports betting market. Currently, only one licensed online platform—Sportsbook Rhode Island—operates under an exclusive agreement between the Rhode Island Lottery and International Game Technology.

Among its key provisions, the bill would allow for four to six licensed operators across both online and retail sports betting channels, effectively ending IGT’s current exclusivity arrangement. The legislation does not establish a fixed licensing fee structure; instead, sportsbook operators would be selected through a competitive bidding and contracting process overseen by the Rhode Island Lottery.

Senate Bill 3118 represents the next step in the state’s ongoing effort to end its online sports betting monopoly. For example, in October, eight major operators indicated interest in entering Rhode Island’s market if the state modifies its laws.

The bill would maintain oversight of sports betting under the authority of the Rhode Island Lottery, which would manage the licensing process. Applications would be evaluated based on factors including operational capability, regulatory compliance history, technical standards, and revenue generation potential.

If enacted, the bill would lead to significant expansion of the state’s gambling market. However, operators would still need to partner with a land-based casino in Rhode Island. Such opportunities remain limited, as Bally’s Corporation’s Bally’s Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel are currently the only licensed casino venues in the state. The bill also contains no provisions for issuing new casino licenses.

The Bill Also Seeks to Modify the State’s Betting Taxes

Importantly, the bill would revise Rhode Island’s sports betting tax structure, which is currently among the highest in the United States. Currently, online sports betting revenue is taxed at 51%, leaving operators with just 49% of online revenue.

SB3118 would substantially alter the existing revenue-sharing model. Once FY25 revenue targets are met, the state’s share would be reduced from 51% to 12%. Meanwhile, the vendor share would increase from 32% to 79.5%, while the portion allocated to host casinos would decline from 17% to 8.5%.

The bill was introduced in the Senate last week and has since been referred to the Senate Labour and Gaming Committee, with a hearing scheduled for May 20. If passed, the Rhode Island Lottery must launch an open application process for sportsbook vendor contracts no later than January 1, 2027.