Rhode Island Senate Passes Bill to Reform Online Sports Betting Market
In a significant legislative move, the Rhode Island Senate has approved Senate Bill 748, which aims to dismantle the monopolistic grip of International Game Technology (IGT) on the state’s online sports betting market. With a decisive vote of 30-2, the bill will now proceed to the House for further evaluation.
Currently, IGT operates the state’s only online sports betting platform, Sportsbook Rhode Island, but Senate Bill 748 seeks to introduce competition by allowing a minimum of three and a maximum of five sportsbooks to enter the market. Potential candidates mentioned include prominent names like FanDuel and DraftKings. Although earlier drafts proposed five operators, a recent amendment reduced this number, with Senate Majority Leader Frank Ciccone III explaining that it simplifies the process.
In addition to expanding the market, the bill also accelerates the termination of IGT’s contract with the Rhode Island Lottery, moving its expiration date from July 1, 2026, to January 31, 2026. However, the current high tax rate of 51% on gross gaming revenue remains unchanged, which may deter new operators.
The Rhode Island Lottery, which has a vested interest in resolving its exclusivity deal with IGT, is actively exploring options. A recent study suggested that the optimal number of online sportsbooks for Rhode Island would be between four and six.
As the bill heads to the House, a select committee will scrutinize its components. If the committee approves, it will undergo another vote before reaching Governor Daniel McKee. The governor could either sign it into law, veto it, or allow it to pass automatically by not acting on it. A final decision is expected before the legislative session concludes on June 30.
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