A group of Rhode Island senators has introduced legislation that would transform the state's sports betting market from one of the few remaining monopolies in the United States into a competitive marketplace with multiple operators.
Senate Bill 748, filed by Democratic Senators Frank Ciccone, John Burke, Todd Patalano, and David Tikoian, would prohibit the state lottery division of gaming from renewing its exclusive sports betting vendor contract with International Game Technology (IGT) when it expires in 2026.
The bill specifies that starting July 1, 2026, the division would:
Issue an open invitation to qualified applicants for sports betting licenses
Award a minimum of five licenses to approved vendors
Create Rhode Island's first competitive sports betting marketplace
If passed, the legislation would allow major operators like FanDuel, DraftKings, and BetMGM to enter a market from which they've been excluded since Rhode Island legalized sports betting in 2018.
Rhode Island was among the first states to launch legalized sports betting following the Supreme Court's repeal of PASPA. Since 2019, IGT has powered Sportsbook Rhode Island as the exclusive provider of both retail and online wagering through its PlaySports technology.
The company also holds a 20-year contract as the exclusive supplier of retail and online lottery services to the Rhode Island Lottery, giving it a significant footprint in the state's gaming industry.
Rhode Island is one of just a handful of sports betting monopolies in the country, alongside:
Delaware, where Rush Street Interactive's BetRivers operates without competition
Florida, where Hard Rock Bet has exclusive rights through its deal with the Seminole Tribe
Oregon, where DraftKings effectively controls statewide online wagering via its Oregon Lottery partnership
While the proposed legislation would open the door to competition, Rhode Island's 51% tax rate on sports betting revenue—among the highest in the nation—could dampen operator enthusiasm.
The bill makes no mention of adjusting this tax rate, which could remain a significant barrier to entry even with an open licensing process. Industry analysts question whether the country's smallest state can attract five operators with such a high tax burden.
According to the Rhode Island Lottery's most recent monthly report, the current monopoly setup generated:
$47.4 million in bets in January 2025
$5.1 million in gross gaming revenue
Approximately $2.6 million in tax revenue
To date, Rhode Island's sports betting market has processed around $2.5 billion in wagers and generated more than $214 million in revenue, with the state collecting approximately $110 million in taxes.
The timing of the bill raises questions about whether IGT's recent acquisition influenced legislators' decision to seek a more competitive market structure. In July 2024, private equity firm Apollo Global Management purchased IGT's gaming operations in a $4 billion all-cash deal, which included the Rhode Island contracts.
While the bill has been referred to the Senate Labor and Gaming Commission, its path forward remains uncertain. The commission currently has more than 30 bills awaiting review with approximately three months remaining in the legislative session.
Despite having Democratic sponsors in a heavily Democratic legislature (Democrats hold a 34-4 majority in the Senate and a 64-10 majority in the House), the bill's priority level within the crowded legislative calendar will likely determine whether it advances before the session ends.
If successful, the legislation would transform Rhode Island's sports betting landscape and potentially serve as a model for other monopoly markets considering a shift toward competition.