Rhode Island Senate Vote Could End the State's Sports Betting Monopoly

Rhode Island's Senate has voted on S3118, a bill that would end the state's sports betting monopoly and replace it with a competitive market of three to five online operators. The legislation cleared committee before reaching the floor and now heads to the House, where a nearly identical bill died in committee last year.

The vote follows closely on the heels of the Rhode Island Lottery's tentative award of the state's second online sportsbook license to Bally's, made under the existing restrictive framework. That selection responded to a consultant report recommending up to six new operators built around the state's current 51% revenue share — the highest in the country. S3118 would replace that entire structure. If the bill becomes law before IGT's exclusive contract expires in November 2026, the Bally's award could become a placeholder in a market that looks very different by the time it actually launches.

A Bigger Cut for Operators, Aimed at Drawing Competition

Introduced in March by a group of Democratic senators led by longtime sponsor Frank Ciccone, S3118 would require the Lottery to award three to five operator licenses through competitive bidding once the IGT deal ends. It would also restructure the revenue split, increasing the share that goes to operators relative to the state and host facility.

Currently, Rhode Island keeps 51% of online sports betting revenue, with the remaining 49% split between Bally's (17%, as retail partner) and the platform operator (32%). FanDuel and DraftKings have both submitted testimony supporting the bill, arguing the 32% operator share is too thin to justify entering the market — a claim supported by the fact that only Bally's and BetRivers applied when the state opened bidding for a second operator slot in late 2025.

A Contract Deadline Is Forcing the Issue

A similar bill passed the Senate 30-2 last year before dying in the House, where the Speaker argued it was redundant given the looming IGT contract expiration. That argument is harder to sustain now that the contract has only months left and the Lottery has already moved to lock in a five-year deal with Bally's under the old framework.

What Happens to the Bally's Deal?

If S3118 passes, the Bally's contract likely survives in some form, but with its 32% operator share renegotiated downward as new competitors enter. The Lottery has not said publicly how it would reconcile the two processes.

The Bill Intersects With Ongoing Prediction Market Litigation

Rhode Island is currently fighting prediction market platforms on three fronts: a federal suit from Kalshi, state litigation against Kalshi and Polymarket led by Attorney General Peter Neronha, and a separate suit from the CFTC. The state's core argument — that prediction markets amount to unlicensed sports betting competing with its regulated market — is stronger if that regulated market looks genuinely competitive rather than a protected monopoly. The legislative session ends June 30, leaving a narrow window for the House to act before the issue is effectively decided by default.