PROVIDENCE – Rhode Island ranks eighth overall for its percentage of overall tax revenue stemming from legal sports betting, according to the U.S. Census Bureau’s Quarterly Summary of State and Local Tax Revenue.
Of Rhode Island's quarterly tax revenue, 0.32% now comes from sports betting, according to the report.
Nationally, sales tax revenue from sports betting surged almost four-fold over the previous four years, rising from $190 million in the third quarter of 2021 to $917 million in the second quarter of 2025.
State tax rates range from as low as 6.75% in Iowa and Nevada to the 51% seen in Rhode Island, New York and New Hampshire.
Many states are cashing in as more decide to relax gambling regulations, including Delaware, Kansas, Maine, Massachusetts, North Carolina, Vermont and Missouri.
New York has reportedly collected more than $200 million in revenue per quarter, according to the report, while Ohio's sports book generated $39 million in its first quarter of operation.
Rhode Island revenue generated by sports wagers declined by 3.2% in fiscal 2025 with $18.6 million transferred to the state’s general fund, according to the R.I. Auditor General, “primarily due to increased competition from neighboring states.”
Proponents of market expansion on Smith Hill have been arguing that increasing the number of online sports betting offerings would help recoup some of the revenue being lost to neighboring states.
A bill during the last session sponsored by Senate Majority Leader Frank Ciccone to allow other companies into the Rhode Island market and end the current monopoly enjoyed by IGT after its current contract expires in November 2026 passed the Senate 30-3 but was held up in the House.
Respondents to a request for information released by the R.I. Lottery include IGT, Bally’s, Fanatics, Kambi, DraftKings, BetMGM, OpenBet and FanDuel.
Rhode Island’s sports betting market posted $43.7 million in handle for Oct. 2025 and produced $3.06 million in sportsbook revenue, largely driven by online activity, collecting $1.56 million in taxes, according to the latest figures from the R.I. Lottery.
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.