Sports wagering becomes legal in Rhode Island, yielding a 51% income share for the state.
Governor Raimondo Signs Bill, Legalizing Sports Betting in Rhode Island
At a ceremony on Friday, Governor Gina Raimondo signed S7200A into law, making sports betting legal in Rhode Island. The Ocean State will join the growing list of non-Nevada states offering authorized sports wagering this year, targeting an October 1 launch. This places Rhode Island among Delaware, New Jersey, and likely West Virginia and Mississippi, which have recently established sports betting regulations.
In a significant move, Rhode Island has set the highest tax rate for sports betting profits. Under the new law, the state will receive 51 percent of the revenue, followed by the state's gaming operator with 32 percent and the casinos with 17 percent. This tax rate eclipses Pennsylvania's much-criticized 36 percent tax rate.
Senate President Dominick J. Ruggerio remarked in a press release that the budget will maintain progress in reducing taxes and improving the business climate while investing in economic development. Rhode Island has earmarked $23.5 million in sports betting revenue in its budget, demonstrating the state's expectations of a substantial financial boost from legalized sports betting.
Rhode Island will permit sports betting at two casinos—Twin River in Lincoln and Tiverton, set to open later this year. Both facilities will be managed by International Gaming Technology (IGT). The law explicitly forbids an "integrity fee," does not allow wagers on Rhode Island-based collegiate teams, and permits mobile wagering, but only on-site at a brick-and-mortar casino. Rhode Island will pay the towns of Twin River and Tiverton $100,000 each annually for hosting casinos, and the state lottery will manage regulatory oversight.
With this move, Rhode Island joins Pennsylvania, West Virginia, and New Jersey in rejecting the professional sports leagues' demand for an 'integrity fee.' Major League Baseball and the NBA have advocated for a share of revenue, claiming it is necessary for maintaining game integrity. Rhode Island's new law requires casinos to fund their own oversight and allows them to use data from a sports wagering vendor, rather than requiring official league data.
Several other states, such as Connecticut, Florida, and various Southern states, have shown interest in legalizing sports betting this year. The Supreme Court's 2018 decision that overturned the federal ban on sports betting has triggered an uptick in legislative activity aimed at legalizing sports betting across the U.S.
[1] Connecticut's sports betting legislation[2] Florida's sports betting tribal compact[3] Texas House Joint Resolution 125
- The new law in Rhode Island has set the highest tax rate for sports betting profits, with the state receiving 51 percent of the revenue, a rate that surpasses Pennsylvania's much-criticized 36 percent tax rate.
- Rhode Island's sports-betting revenues, earmarked at $23.5 million in the state's budget, demonstrate the state's expectations of a substantial financial boost from legalized sports betting.
- With this move, Rhode Island joins Pennsylvania, West Virginia, and New Jersey in rejecting the professional sports leagues' demand for an 'integrity fee', opting to manage regulatory oversight and use data from a sports wagering vendor instead.