Rhode Island Senate Bill Would Allow Up to Six Sports Betting Operators — With a Catch About the Tax Rate

Rhode Island lawmakers have introduced Senate Bill 3118, legislation that would allow the state to issue four to six additional online and retail sports betting licenses with an application period starting January 1, 2027. The bill, introduced by Democratic Senators Frank Ciccone, John Burke, and Stefano Famiglietti, represents the most ambitious attempt yet to break up Rhode Island’s historically limited sports betting market. But its passage and the actual entry of major operators hinge almost entirely on whether the legislature is willing to reduce the state’s 51 percent tax on sports betting revenue.

Rhode Island is one of the most restricted sports betting markets in the country. Since 2019, a single platform operated by IGT under the Sportsbook Rhode Island brand has held a monopoly on online betting in the state. Earlier this month, the Rhode Island Lottery selected Bally’s as a second operator, with a projected November 2026 launch. SB 3118 would go significantly further by creating a true multi-operator environment similar to what most major sports betting states have already built.

The Tax Rate Is the Central Problem

When the state opened applications for the second license last year, only two companies applied: Bally’s and Rush Street Interactive’s BetRivers. The limited field reflected a widely shared view in the industry that Rhode Island’s 51 percent revenue tax, the highest rate among competitive sports betting markets, makes it extremely difficult to operate profitably. By comparison, New Jersey taxes operators at roughly 13 to 14 percent for online wagers, and most major markets fall somewhere between 10 and 25 percent.

For SB 3118 to result in real competition rather than another round of limited applications, the state would also need to cut that rate substantially. Representative Matthew Dawson has acknowledged this reality, saying lower taxes are a necessary step before major national operators would seriously consider Rhode Island. New Jersey sportsbooks offer a useful contrast as a well-developed multi-operator market that Rhode Island has consistently lagged behind in handle and revenue per capita. The bill has not yet received a hearing, and the legislature has until June 30 to act, making the path forward uncertain but the conversation increasingly important for the state’s long-term gambling revenue strategy.