Rhode Island lawmakers have introduced Senate Bill 3118 (SB 3118) to expand the state’s sports betting market. Senators Frank Ciccone, John Burke, and Stefano Famiglietti introduced the legislation as lawmakers continue debating the future of regulated wagering in the state.
The proposal would end Rhode Island’s current monopoly system for online wagering. Supporters believe the measure could modernize the local gaming industry and improve competition.
Currently, Rhode Island operates with a limited sportsbook structure through the Rhode Island Lottery. However, many lawmakers believe the current model restricts consumer choice and limits market growth.
As a result, SB 3118 aims to open the market to more operators. The bill would affect both retail sportsbooks and US online sportsbooks operating in the state.
Key Provisions of SB 3118
SB 3118 would dramatically reshape Rhode Island gambling regulations. Most importantly, the legislation would require the state to award between four and six sportsbook licenses.
Under the proposal, Rhode Island’s Division of Lottery must issue an open invitation for sportsbook applications by January 1, 2027. The state would then select qualified vendors through a competitive process.
Additionally, the bill would prioritize operators with strong compliance records and responsible gaming systems. Lawmakers also want vendors with experience in regulated US online sportsbooks markets.
However, Rhode Island’s casino structure could still create limitations for future operators. Under current state gaming laws, online sportsbooks generally must partner with a land-based casino to operate legally.
That requirement creates a unique bottleneck in Rhode Island gambling because Bally’s Corporation owns both of the state’s casinos. Bally’s currently operates the properties in Lincoln and Tiverton.
Consequently, any future sportsbook brand would likely need a partnership agreement with Bally’s to enter the market.
Beyond licensing, SB 3118 would overhaul Rhode Island’s sports betting tax structure and revenue-sharing model.
Currently, the state receives 51% of sports wagering revenue. However, the bill proposes reducing the state’s share to 12% after fiscal year 2025 benchmarks are reached.
Meanwhile, sportsbook vendors would see their revenue share increase significantly. The vendor share would rise from 32% to 79.5% once revenue targets are met.
At the same time, host casino revenue would decrease. Casinos currently receive 17% of sports betting revenue. However, SB 3118 would lower that figure to 8.5%.
Lawmakers believe the revised structure could attract major sportsbook brands. Consequently, the state hopes increased competition would improve customer experience and overall betting activity.
Current State of Rhode Island’s Gambling Market
Rhode Island currently operates one of the most restrictive sports betting markets in the United States. At present, Bally’s serves as the state’s primary sportsbook operator through the Rhode Island Lottery system.
The state currently offers limited choices for US online sportsbooks bettors compared to larger regulated markets. Therefore, players often face fewer promotions, betting markets, and mobile features.
Recently, the Rhode Island Lottery approved a second sportsbook vendor license for Bally’s. The company reportedly beat out BetRivers during the bidding process.
That decision signals the state already recognizes the need for expansion. However, SB 3118 would take the process much further by opening the market to several operators instead of maintaining a tightly controlled structure.
Many residents have openly criticized the current platform. Some bettors have even crossed into neighboring Massachusetts to access competing sportsbook apps.
Furthermore, Massachusetts operates a far more competitive market with several national sportsbook brands. That difference has increased pressure on Rhode Island lawmakers to revisit existing regulations.
What SB 3118 Could Mean for Rhode Island Legislation
SB 3118 could mark a major turning point for Rhode Island gambling policy. If approved, the legislation would shift the state away from its limited sportsbook structure.
The bill could also encourage national sportsbook companies to enter Rhode Island’s market. That outcome may lead to stronger promotions, improved technology, and better odds for bettors.
However, the proposal still faces legislative review before becoming law. Some officials may question whether lowering the state’s revenue share could reduce short-term tax income.
Even so, supporters believe long-term growth could offset those concerns. They argue increased competition would expand wagering activity and strengthen Rhode Island’s overall gaming market.
