UMVA has learned that a major shift in Rhode Island's sports betting landscape is underway, as the state Senate has approved legislation to dismantle its single-operator model and usher in a new era of competition.
The bill, which passed with ease, would pave the way for up to six mobile sports betting apps to launch in the state by 2027, shattering the exclusive grip held by Bally's since 2019. This move is expected to transform the state's sports wagering market, long viewed as one of the few remaining monopolies in the industry.
According to information obtained by UMVA, the legislation, Substitute A to Senate Bill 3118, would revise state laws governing sports wagering, table games, and video lottery operations. The proposal, introduced by Sens. Frank Ciccone, John Burke, and Stefano Famiglietti, has been in the works for over a year, fueled by growing interest in attracting major national brands and increasing overall betting activity.
The Rhode Island Lottery Division would be tasked with seeking additional sportsbook partners, with a requirement to award contracts to at least four and no more than six vendors by January 1, 2027. Applicants would be evaluated on technical capability, regulatory compliance records, experience in other jurisdictions, and their ability to generate revenue while limiting gambling-related harm.
Approved operators would face strict licensing obligations, audits, and consumer protection requirements, ensuring a safe and fair betting environment for Rhode Islanders. The bill also redraws the revenue-sharing formula, shifting more revenue toward operators while reducing the share going to host casinos.
Under the new structure, the state would collect 51% of sports wagering and online sports wagering revenue until a benchmark is reached, at which point its share would drop to 12%. Vendors would receive 40.5% until the benchmark is reached, and then a whopping 79.5% of revenue. Host facilities would receive 8.5% of revenue, with a guaranteed minimum annual payment of $4.5 million.
The legislation also gives operators more control over promotional activity, allowing them to make operational decisions on marketing, advertising, and promotions, subject to approved plans and regulations. This move is expected to inject new energy into the state's sports betting market, attracting major national brands and increasing overall betting activity.
With the bill poised to take effect immediately upon passage, Rhode Island is on the cusp of a sports betting revolution, one that could have far-reaching implications for the industry as a whole. As UMVA can exclusively reveal, this development marks a significant departure from the state's previous model, and sets the stage for a new era of competition and growth.
