Rhode Island lawmakers urge finance committee to end lottery-controlled sportsbook monopoly

Rhode Island lawmakers are advancing efforts to end the state’s exclusive sports betting arrangement, as a House bill proposing an open licensing framework received its first committee hearing just one day after a similar Senate bill was discussed.

House Bill 6048, heard Thursday by the House Committee on Finance, mirrors Senate Bill 748 in calling for the state to begin accepting applications for sportsbook licenses starting July 1, 2026. Under the proposal, at least five licenses would be granted to commercial operators, ending the single-operator system that has been in place since the launch of online sports betting in 2019.

Rhode Island’s sole provider, Sportsbook Rhode Island, operated by the state lottery and powered by IGT and William Hill, has been the only option for nearly six years. Lawmakers are now questioning whether the lack of competition has contributed to the state’s declining sports betting revenues.

“For lack of a better term, it’s a monopoly. And a monopoly is difficult,” said Rep. Matthew Dawson, one of the bill’s sponsors. “Competition is the backbone of all economy in this country. Competition really brings out the best in everyone.”

Dawson noted that Rhode Island’s sports betting revenue has fallen from $49.3 million in 2022 to $40.3 million in 2023, and down again to $35.8 million in 2024, placing it near the bottom of the 33 U.S. jurisdictions with legalized online betting. A recent report from the Auditor General revealed that the state’s sportsbook profit fell to $19.2 million in Fiscal Year 2024, a nearly 25% drop from the prior year.

“The lack of competition has our one provider. There’s really no need to give benefits to consumers. There’s really no need for innovation or growth or anything else,” Dawson said. “We’re not doing well.”

The hearing featured testimony solely from Dawson, unlike Wednesday’s Senate hearing, which included remarks from FanDuel’s government affairs manager Mike Ventre.

Both stated that jurisdictions with competitive markets, such as Washington, D.C., have seen dramatic increases in tax revenue following market expansion. D.C. saw sportsbook tax revenue jump from roughly $489,000 in Q1 of Fiscal Year 2024 with one operator to $4.5 million after opening to six operators.

“People are going to gamble. That’s just how things are going,” Dawson said. “I don’t want to sound like Tony Soprano, but we gotta get our cut.”