Pending online gambling bill for Rhode Island

Sole operator of casino gambling in Rhode Island, Bally, has been activity advocating for a bill to legalise live table games and online slots in the State. The bill is now being considered by the House of Representatives.

Bally raised concerns about the impact that online sports betting will have in the neighbouring state of Massachusetts. Online betting revenue is very important to Rhode Island and the changes will surely effect Rhode Island’s gaming tax revenues.

Monopoly on casino gambling

Bally has a monopoly on casino gambling in Rhode Island and operates the State’s two land-based casinos, Bally’s Twin River Lincoln and Bally’s Tiverton.

The new legislation is being supported by Senator Dominick Ruggerio and allows players over the age of 21 to access existing live dealer table games at Bally’s Twin River remotely with a computer or a mobile app. The “simulcast”, or live dealer proposal came in response to concerns that Bally’s initial iGaming plan is being considered as a expansion of the gambling act and therefore requires further approval.

Players would have to be located within the jurisdiction to participate. Online lottery and sports betting is available to those aged 18 or older.

This iGaming legislation is constitutional, is geared to mature users, contains education provisions for problem gamblers, and preserves the revenue allocation percentages as they are currently in place,” Dominick Ruggerio, Senator – Rhode Island 

According to a study commissioned by Bally, the State could benefit by US $210 million in tax spread over five years. Another state-commissioned report carried out by Christiansen Capital Advisors LLC estimates the same figure at approximately US $160 million.

Online gaming offered through state lottery

Rhode Island is the smallest US state with just over a million residents. It offers casino gambling through the state lottery. Bally has exclusive rights to online casino gaming and a monopoly on sports betting. The State receives 61 percent of all online slot revenue and platform vendors receive 22.45 percent of online slot revenue.

That knock-on effect of the new legislation in Rhode Island could have an impact not only on Massachusetts but also on other states like New Hampshire, Maine, Indiana and Iowa.

The iGaming industry has welcomed the news of the new legislation. Operators that have penetrated the LatAm market view Northern America as the next strategic expansion.

The North American market is still relatively early in its growth cycle and process, with many states and provinces yet to open for online sportsbook, and many more for online casino.” Michael Daly, CEO- Catena Media

Daly explained that he expects a temporary slowdown of openings in Rhode Island due to the US elections but he also anticipates a resumption and potential acceleration of state launches once a new legislative cycle begins in 2025.

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