Rhode Island Moves Toward Competitive Sports Betting Market

International Game Technology (IGT) and opening the door to major gambling platforms like DraftKings and FanDuel.

A bill ed by the state Senate on June 4 seeks to dismantle the current system starting in late 2026, when IGT’s contract expires. The proposed law would block the Rhode Island Lottery from simply renewing IGT’s contract and instead require a competitive bidding process for up to five sports betting vendors.

DraftKings, which testified in of the bill, argued, “A marketplace with multiple choices for players leads to a better player experience – operators are forced to innovate, while competing for business.” The company pointed out that Rhode Islanders currently wager only $38 per adult annually—one of the lowest per-capita rates in the U.S.—and suggested that introducing competition could boost both usage and state revenue.

Financial Stakes and Industry Resistance

As the third-largest source of state revenue, gambling policy in Rhode Island tends to revolve around maximizing income. While the new legislation could increase consumer choice, IGT warned that a multi-vendor approach might not yield the financial windfall ers expect.

Defending the existing structure, IGT Senior Vice President Joe Bertolone stated: “This strong fiscal performance is not coincidental; it reflects the benefits of centralized operations, cohesive marketing and product development through committed in-state operating partners.”

IGT also cautioned that expanding to multiple vendors wouldlikely mean lowering tax rates and host fees to attract competitors. This, they argue, could lead to more aggressive marketing and less money flowing to the state, especially if problem gambling rates rise.

Lottery and Legislative Hurdles Remain

The Rhode Island Lottery has also expressed misgivings. Director Mark Furcolo warned that removing the option to extend IGT’s deal could be legally questionable and argued that his agency lacks the resources to oversee five different sportsbook operators.

Originally, the bill required at least five contracts, but after concerns were raised, the Senate modified the language to allow between three and five vendors. A Lottery-commissioned study by Spectrum Gaming Group ed a shift to four to six operators and advised the state to reduce its effective tax rate to around 30%, among other recommendations. The report urged Rhode Island to issue a request for proposals by the end of this year.

The House has yet to advance its version of the legislation. Speaker K. Joseph Shekarchi has taken a cautious approach, saying the proposal might be premature given the current IGT contract.

Bills Also Target Underage Gambling

In parallel, Ciccone is sponsoring another bill that would impose criminal penalties for allowing individuals under 21 to place online bets. Although Rhode Island legalized online gaming in 2023, concerns about teen gambling prompted calls for stronger enforcement. The Senate has yet to vote on this measure, but a similar bill in the House has cleared committee review.

Source:

“Could DraftKings and FanDuel finally come to RI? Here’s where it stands”, providencejournal.com, Jun 4, 2025