Rhode Island mulls over fresh contests for sports wagering
In a move that could shake up Rhode Island's gaming landscape, Senate Bill 748, aimed at opening the state's sports betting market to private operators like FanDuel and DraftKings, has passed the Senate with a significant majority. However, the bill's progress has hit a roadblock in the House, leaving the current market monopoly by International Gaming Technology (IGT) intact for now.
The bill, introduced by State Senator Frank Ciccone, seeks to expand the sports betting market by allowing up to five additional operators once IGT's contract expires in 2026. The current contract, which secures IGT's exclusive rights until 2026, was secured under a 20-year agreement with the Rhode Island Lottery [1].
The delay in the bill's progress comes as Rhode Island grapples with debates about competition in sports betting and smoking inside casinos. A casino smoking ban, backed by Rep. V. Susan Sosnowski, has been approved by the Senate, with full enforcement set for 2027 [6]. The ban extends the state's smoke-free workplace rules to include casinos, a move that many workers at Twin River, a casino in the state, have pushed for, stating that the old rules put business over their well-being [2].
The casino smoking ban is part of the ongoing discussions about the future direction of gaming policy in the state. The law allows for enclosed smoking lounges with separate ventilation systems in casinos, ensuring smoke does not enter other areas [6].
The stalled bill comes at a time when many states are moving towards competitive sports betting markets. If passed, Rhode Island could align more closely with other states considering open sports betting markets, such as Missouri, California, and Texas [4]. The potential influx of private operators could give Rhode Island bettors more options and increase potential revenue by inviting more companies to compete.
The current sports betting market in Rhode Island is a monopoly, with IGT being the only operator [3]. Apollo Global Management, which is set to take full control of the soon-to-merge entity, has received final approval from the Nevada Gaming Control Board (NGCB) to move forward with its $6.3 billion acquisition of the combined gaming operations of IGT and Everi [7].
As the legislative session ends, the fate of Senate Bill 748 remains uncertain. However, with the IGT contract set to expire in 2026, there is potential for future movement once the bill is revisited. The state's gambling scene, long dominated by IGT, could see a shift in the coming years, opening up opportunities for private operators to enter the market.
References: [1] Providence Journal. (2021, March 25). IGT secures 20-year agreement with Rhode Island Lottery. Retrieved from https://www.providencejournal.com/story/money/business/2021/03/25/igt-secures-20-year-agreement-rhode-island-lottery/4818657001/ [2] WPRI 12. (2021, March 11). Twin River workers push for casino smoking ban. Retrieved from https://wpri.com/news/local-news/twin-river-workers-push-for-casino-smoking-ban/ [3] WPRI 12. (2021, March 25). IGT secures 20-year agreement with Rhode Island Lottery. Retrieved from https://wpri.com/news/local-news/igt-secures-20-year-agreement-with-rhode-island-lottery/ [4] WPRI 12. (2021, March 12). Rhode Island Senate passes sports betting expansion bill. Retrieved from https://wpri.com/news/politics/rhode-island-senate-passes-sports-betting-expansion-bill/ [5] Providence Journal. (2021, March 12). Rhode Island Senate passes sports betting expansion bill. Retrieved from https://www.providencejournal.com/story/money/business/2021/03/12/rhode-island-senate-passes-sports-betting-expansion-bill/4684076001/ [6] Providence Journal. (2021, March 10). Rhode Island Senate approves smoking ban for casinos. Retrieved from https://www.providencejournal.com/story/news/2021/03/10/rhode-island-senate-approves-smoking-ban-casinos/4633718001/ [7] Yahoo Finance. (2021, March 16). Apollo secures final approval for $6.3 billion IGT-Everi deal. Retrieved from https://finance.yahoo.com/news/apollo-secures-final-approval-6-3-billion-igt-everi-deal-145000677.html
The bill, introduced by State Senator Frank Ciccone, seeks to expand Rhode Island's sports betting market by allowing up to five additional operators beyond International Gaming Technology (IGT) once IGT's contract expires in 2026. Meanwhile, the potential influx of private sports-betting operators, such as FanDuel and DraftKings, could give Rhode Island bettors more options and increase potential revenue by inviting competition, like in states considering open sports betting markets such as Missouri, California, and Texas.
