Rhode Island Senate Bill 3118 Seeks to End State’s Sports Betting Monopoly

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

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

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

Among the bill’s key provisions is an expansion of the market to allow between four and six licensed operators across both online and retail sports betting\, This would effectively end IGT’s existing exclusivity arrangement. Furthermore, the legislation does not outline a fixed licensing fee structure. Instead, sportsbook operators would be selected through a competitive bidding and contracting process managed by the Rhode Island Lottery.

Senate Bill 3118 could be viewed as the next step in the state’s long path to ending its online sports betting monopoly. For example, in October, eight major operators expressed interest in joining Rhode Island’s market, should the state change its laws.

The bill would also keep 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 such as operational capability, regulatory track record, technical standards, and the ability to maximize revenue.

If legislators accept the bill, the state’s gambling market would see significant expansion. However, operators would still likely be required to partner with a land-based casino in Rhode Island. Those opportunities would remain limited, as Bally’s Corporation’s Bally’s Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel are currently the state’s only licensed casino venues. The bill also does not contain any provisions for the creation of additional casino licenses.

The Bill Also Seeks to Change the State’s Taxes on Betting

Importantly, the bill would also reshape Rhode Island’s sports betting tax structure, which is currently among the highest in the US. At present, online sports betting revenue is taxed at 51%, leaving operators with only 49% of online revenue.

SB3118 would significantly alter the existing revenue-sharing framework. Once FY25 revenue targets are achieved, the state’s share would be reduced from 51% to 12%. Meanwhile, the vendor share would increase from 32% to 79.5%, while the share allocated to host casinos would drop 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 it passes, the Rhode Island Lottery will have to launch an open application process for sportsbook vendor contracts by no later than January 1, 2027.