PROVIDENCE – Rhode Island had the lowest growth in revenues from sports betting between 2022 and 2023, decreasing 17% year-over-year, according to an analysis conducted by sports betting website Props.com.
Their analysis of of the data from the American Gaming Association’s annual "State of the States" report
shows Maryland had the highest growth in sports betting of any of the 38 states where it is legal, with revenues growing by 244%. Kansas ranked second, jumping 138% over the same time period.
Props Editorial Manager Brett Smiley predicted that “momentum will continue as more states explore the potential benefits of legalizing and expanding sports betting."
"Our findings illustrate a remarkable trend in the sports betting landscape, especially in states like Maryland and Kansas,” he said. “The significant revenue growth highlights the increasing popularity of sports betting. It also underscores the evolving consumer preferences within the gaming industry.”
Year over year data shows a similar trend for fiscal 2024. Sports betting revenue in Rhode Island reached $50 million in fiscal 2023, falling to $39 million the following year.
Rhode Island marked its six-year anniversary of on-the-books sports betting on November 26, and has surpassed $200 million in total tax revenue since legalization.
But the state has been slowed by increased regional competition from Massachusetts and Connecticut. After handling $532 million in wagers in 2022, the total handle in Rhode Island fell to $413.6 million for fiscal 2023.
The R.I. Auditor General's annual report said Rhode Island’s sportsbook for fiscal year 2024 generated $38.6 million in tax revenue, a 24.2% decrease compared to fiscal 2023.
Conversely, sports betting wagers in Massachusetts-which began in 2023
– reached $483.2 million in its first 11 months of operations, with tax
revenue nearly doubling initial projections, according to the Boston Federal Reserve.
The most recent monthly report through October from R.I. Lottery shows sport betting has brought in $11.9 million in state tax revenues so far this fiscal year, $10.5 million of which was online or on mobile apps.
Although sports betting only accounts for roughly 4% of Rhode Island's total gaming revenues, recent data shows the difficulty of beating Las Vegas odds makers.
During a Nov. 18 meeting of the Joint Committee on State Lottery, R.I. Lottery Director Mark Furcolo said the total handle was $146.2 million so far this fiscal year, up 15.9% over the prior year.
But revenues only increased 6% to some unfavorable outcomes that resulted in a hold percentage of 4.3% in October, roughly half of the total average for the current year.
"October was a tough month for us," he said. "Mainly due to a couple of weeks in the NFL."
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
