A bill filed in Rhode Island’s Senate on Friday could pave the way for more sports betting competition.
Senate Bill 748 would end its current exclusive sports betting contract, opening it up to at least five operators. Currently, IGT is Rhode Island’s only online sports betting provider.
In 2018, Rhode Island became one of the first states to legalize sports betting after the U.S. Supreme Court lifted a ban that restricted it in most states. At the time, the tiny state – the smallest in the U.S. – granted an exclusive license to just one online operator. IGT, although headquartered in the UK, had a large workforce in the Ocean State.
Initially, IGT received a five-year exclusive contract, which was then renewed for another three years in 2023. The Senate bill would prohibit the state from renewing the IGT contract when it expires in 2026. Instead, it would invite bigger operators such as FanDuel, DraftKings, and BetMGM to apply for licenses.
It is unknown whether IGT’s recent acquisition factored into the Rhode Island legislators’ decision to alter the state’s current exclusive arrangement. In July, the private equity company, Apollo Global Management, bought IGT’s gaming operations in a $4 billion all cash deal. The deal included Rhode Island’s exclusive sports betting contract, along with a 20-year contract to run the state’s lottery.
Maybe the state’s legislators felt that IGT’s Sportsbook Rhode Island app would benefit from a little competition. Still, an open contract process can’t guarantee a competitive landscape. Rhode Island’s current exclusive licensing agreement is just one deterrent for competition. The state has one of the highest online sports betting taxes in the country. Along with New York and New Jersey, Rhode Island’s sports betting tax rate is 51%. Also, at least five operators might be a lofty goal for the country’s tiniest state.
Roadblock
Senate Bill 748 has four supporters who all happen to be Democrats. But this shouldn’t be viewed as a partisan affair. Democrats have a 34-4 majority in the Rhode Island Senate and a 64-10 majority in the House. Rhode Island’s Governor is also a Democrat.
Party unity, however, might not be enough to push this bill over the finish line. It might come down to priority. Senate Bill 748 has been referred to the Senate Labor and Gaming Commission. That commission has more than 30 bills waiting for review with roughly three months left before the end of the legislative session.
