Rhode Island lawmakers plan to smash sports betting monopoly

Rhode Island lawmakers have proposed new legislation that would significantly open up the sports betting market in the state. 

At present, International Game Technology (IGT) enjoys exclusivity, but the betting landscape is set for a shake-up with plans to introduce at least five sportsbooks to drive competition and revenue.

Four senators have introduced SB748, which would enact change from July next year. 

At that point, there would be no renewals with IGT on the same basis for sports wagering contracts, with a tender process anticipated in months ahead of the expiry of the current deal. 

Interested betting operators will be encouraged to forward their applications for consideration, with a minimum of five licenses to be awarded to approved partners.

The Bill needs to clear the Senate Labor and Gaming Commission, but its progress is not guaranteed, that is very much up for debate.

IGT has been the beneficiary of an effective state monopoly since reforms opened the door for sports wagering in 2019. 

The company is also the operator of retail and online lottery services in the Ocean State, but big industry players such as FanDuel and Draft Kings will be watching with intent at the potential diversification of the sportsbook market.

Monopolies are few and far between in the United States, but the convoluted gambling framework across the various states means Rhode Island is not alone.

Delaware has BetRivers as the sole provider, while DraftKings has an uncontested status in Oregon in a partnership with the state lottery.

Thanks to an agreement with the Seminole Tribe in Florida, Hard Rock Bet enjoys prominence as the exclusive provider of sports betting.

Back in Little Rhodie, the state purse receives 51% of the operator’s revenues due to the long-standing agreement between the parties. 

A snapshot for the start of the year shows that IGT raked in $47.4 million in bets and earned $5.1 million in gross gaming revenue (GGR) in January 2025, sending around $2.6 million in taxes back to the state. 

An exclusive arrangement can provide such a high tax rate and beneficial terms for a state despite relatively low market figures compared to other more lucrative markets. 

However, it appears that Rhode Island sees further gains to be accrued from taking a bigger slice of a much larger pie.

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