One day after FanDuel testified in support of a Rhode Island Senate bill that would end the the state’s sports betting monopoly and open the market to other commercial operators, a House bill that would do the same thing received its first committee hearing.
Like Senate Bill 748, House Bill 6048 would issue an “open invitation” for sportsbook license applications after July 1, 2026, and award at least five to commercial operators.
Rhode Island launched online sports betting in September 2019 with one provider: Sportsbook Rhode Island, which is owned by the Rhode Island Lottery and powered by IGT and William Hill.
Nearly six years later, Sportsbook Rhode Island is still the state’s sole option.
“For lack of a better term, it’s a monopoly. And a monopoly is difficult,” Rep. Matthew Dawson, one of the bill’s seven sponsors, told members of the House Committee on Finance on Thursday. “I understand how we got started, but competition is the backbone of all economy in this country. Competition really brings out the best in everyone.”
Having one sportsbook leaves ‘no need for innovation’
Unlike SB748’s hearing with the Senate Labor and Gaming Committee, which featured only operator-perspective testimony from Mike Ventre, senior manager of government affairs at FanDuel, HB6048’s hearing featured only lawmaker-perspective testimony from Dawson.
But like Ventre, Dawson noted that, while most of the country is seeing sports betting revenues increase, Rhode Island’s is decreasing.
The state pulled in $35.8 million from sports betting in 2024, which put it near the bottom — sixth-lowest out of the 33 jurisdictions where online betting is legal. That’s down from $40.3 million in 2023 and even further below the $49.3 million it made in 2022.
A report from the Auditor General also showed the state’s profit from sportsbooks took a big hit with just $19.2 million in Fiscal Year 2024, which is almost 25% less than the year before.
Dawson blames the monopoly for the downward trend.
“The lack of competition has our one provider. There’s really no need (for it) to give benefits to consumers,” he said. “There’s really no need for innovation or growth or anything else. And unfortunately, we’re probably one of the only places in the country where our online gaming is not growing. It’s shrinking. We’re losing money every year.
“We’re not doing well,” he added, claiming Sportsbook Rhode Island is “not being well-received by the consumer.”
Dawson also emphasized, as Ventre did, that Washington, D.C. recently expanded its online sports betting market from one operator to six. The result? The District went from roughly $489,000 in sportsbook tax revenue in Q1 of Fiscal Year 2024 with one operator to about about $4.5 million in Q1 of this Fiscal Year with six operators.
“Bills like this sometimes take a while to get through, but we’re in trouble financially,” Dawson said. “This is one of a few bills you’re going to see today where I’m offering you lots of money. There’s going to be significant increase in tax revenue if you pass this bill.
“People are going to gamble. That’s just how things are going. I don’t want to sound like Tony Soprano, but we gotta get our cut. That’s what it comes down to.”
So … what happens with duplicate bills?
The House Committee on Finance did not hold a vote on HB6048. It is likely waiting until the Rhode Island Lottery, which oversees all gambling in the state, submits a report on the potential effects of expanding the sports betting market. It is expected to be ready soon.
SB748 also didn’t receive a vote on Wednesday as Sen. Frank Ciccone, the chair of the Senate Labor and Gaming Committee, said it also is waiting for the lottery’s report and that Bally’s — whose headquarters are in Providence and which has two casinos in the state — may wish to provide perspective.
As HB6048 and SB748 are essentially the same bill and both at the same point in their progress, the state legislature would have to decide which bill gets dropped and which gets prioritized.
