- The Rhode Island Senate passed a bill to expand the minimum number of sports betting operators in the state to four and the maximum to six.
- There is currently just one operational sportsbook in the state.
- The bill heads to the Assembly Finance Committee following a 29-6 vote in favor of passing the bill by the Senate.
PROVIDENCE, R.I. – The Ocean State may be headed toward an expanded online sports betting market following the Senate’s approval of a bill that would raise the minimum number of sports betting operators from one to four.
There were preliminary indications that the state was interested in sports betting expansion back in April, before SB 3118A, proposed by Sen. Frank A. Ciccone, passed by a 29-6 vote. It would also raise the maximum number of online sportsbooks in the state to six.
There was no discussion on the Senate floor before the bill was passed, surprising given the magnitude of the potential change to the sports betting market in the state. Rhode Island has a 51% tax rate on sports betting operators, which is tied for the highest rate in the country, meaning more operators could result in massive amounts of revenue for the state.
The bill now heads to the Assembly Finance Committee, though it has not been scheduled for a hearing as of yet.
Currently, there is just one operational sports betting site in Rhode Island, which is Sportsbook RI. If the bill is signed into law, the Rhode Island Lottery would be required to accept new applications prior to January 1st, 2027.
An important change would be made to tax laws as well, as operators would still pay the regular 51% tax rate only up until the state receives as much revenue as was generated from legal sports betting sites in fiscal year 2025. After that benchmark is met, the tax rate would drop to 12% for the remainder of the year.
Similarly, operators would see a 40.5% revenue share (up from 32%) until the revenue from FY 2025 is met, after which the rate will increase to 79.5%.
This bill comes in the wake of another bill proposed by Ciccone in 2025, which also passed the Senate but was struck down by the House following amendments made on the Senate floor.
