PROVIDENCE – Rhode Island will remain a one-sportsbook state for now after legislation stalled in the House, though its sponsor says that is likely to change once the state’s exclusive deal ends next year.
The Senate passed its version of the bill on June 4 by a vote of 30–2 that would have allowed other vendors such as FanDuel and DraftKings to do business in the state. However that bill never got assigned to a House committee hearing before the June 21 deadline. The House version of the bill, sponsored by Rep. Matthew Dawson, D-East Providence, was never taken up after being held for further study on May 1.
So in the meantime, Sportsbook Rhode Island, the
state-run platform overseen by the Rhode Island Lottery and powered by International Game Technology, is still the only place in the state to make sports wager online.
Dawson said his sponsored bill failed to pass the House this year because the state currently has a contract to continue its one sportsbook model with IGT through November 2026.
"I'm still disappointed it didn't go through this year," Dawson said. "Not entirely surprised considering the timing [of the IGT contract], but I am very confident that this bill, or one like it, will pass next session. It's actually my priority to get it done early, on day one of the first session."
House Speaker K. Joseph Shekarchi said that he would not consider the matter until IGT's contract expires next year, Dawson added.
The Senate's version called for the R.I. Lottery Commission to refrain from renewing IGT’s contract and invite applications from potential operators prior to its expiration. The Senate bill's sponsor, Majority Leader Frank A. Ciccone III, who could not be immediately reached for comment.
State financial data shows that the revenue sports betting is generating for the state government under the current one-sportsbook model has
declined in recent years, after reaching a peak revenue of $25.1 million in fiscal 2022.
In the most recent data taken from fiscal 2024, the state collected $19.2 million from online sports betting, the Lottery said, down from $20.5 million in 2023.
Dawson noted the state "isn’t even maximizing profits" like it could be if it allows major sportsbook players like DraftKings and FanDuel to operate here. They’ve been prohibited from doing so since Rhode Island launched sports betting in 2018.
"That's money on the table for the state, and money the state can't stand to turn down," Dawson said.
With Rhode Island facing a projected $250 million deficit in fiscal year 2026, a study commissioned by the RI Lottery in May recommended adding four to six online sportsbooks to help close that financial gap while at the same time competing with neighboring states like Massachusetts and Connecticut that have multi-sportsbooks.
However, Dawson added that the process of expanding online sports betting options will still take some time to get off the ground if the state does pass a bill in the future.
"I wanted this to pass this year to give the lottery commission and all the parties involved enough time to put up Requests for Proposals and things like that," Dawson said. "It would have given them abundant time to do so and really get things in motion. But, instead we will have to continue to wait."
IGT has deep ties to Rhode Island's economy and the lucrative state Lottery. For instance, its exclusive sportsbook contract allows for the state to take an enormous 51% share of gross revenue, tied with New York and New Hampshire for the highest rate in the country.
The lottery-commissioned study found that even with the 51% tax on gross online sports betting revenue, Rhode Island still trails other states that have more than one sportsbook option. Dawson cited Washington D.C., where sports betting grew 172% last year after lawmakers approved multiple platforms.
The state’s hefty cut of the sportsbook revenue also could serve as a barrier to entry into Rhode Island for other gambling companies, and the legislation doesn’t address whether the rate will be adjusted when the contract ends, the study found.
Dawson also noted that Rhode Island's current sports betting model is tantamount to a monopoly. He sees the exclusive agreement with IGT as problematic.
“It’s a state-run monopoly, and it isn’t even maximizing profits for the state,” he said. “Every state around Rhode Island is getting paid but us. The state is leaving money on the table, and we’re in a deficit. We’re not in a position to let revenue like this get away.”
FanDuel spokesperon Alex Pitocchelli was diplomatic about the bill's failure in Rhode Island, which will continue to ban them and any others from operating in the state for the time being.
“We appreciated the opportunity to speak with the legislators in Rhode Island about the benefits of a competitive marketplace, with a reasonable tax and regulatory structure that combats offshore, illegal online sports betting," Pitocchelli said. "We look forward to continuing the discussion with the legislature about how a competitive market with multiple operators can create an exciting offering for Rhode Islands that offers player protections and revenue for the state.”
Representatives from DraftKings did not immediately respond for requests for comment.
Meanwhile, IGT wrote in a statement that it "
appreciates the opportunity to work with the Rhode Island Lottery to ensure a great player experience with the IGT PlaySports solution and to help grow state sports betting revenues."
(UPDATE: Removes reference to length of contract in 4th paragraph.)
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
