Rhode Island Senate Passes Sports Betting Expansion Bill for Second Year Running

Rhode Island lawmakers have advanced a bill that would expand the state’s current sports betting market from two operators to a potential six.

Charlotte Capewell

Last Updated: June 10, 2026 7:30 AM EDT • 3 minute read

Pictured: Rhode Island FC midfielder Clay Holstad kicks the ball as we look at possible sports betting expansion in the state. Photo by Eric Canha-Imagn Images

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For the second consecutive year, the Rhode Island Senate has approved legislation that would open the state's tightly controlled sports betting market to outside operators. Senate Majority Leader Frank Ciccone's bill, SB 3118, cleared the chamber on Thursday and now moves to the House of Representatives for consideration.

The proposal would authorize between four and six online sports betting operators to enter the Rhode Island sports betting market. Under the bill's terms, the Rhode Island Lottery would begin accepting applicants for new sports betting contracts on January 1, 2027.

The revenue structure laid out in the legislation represents a notable departure from the current arrangement. Operators would initially receive a 40.5% share of sports betting revenue, up from the current 32%. New operators would lead to a boom in Rhode Island sportsbook promos.

The state retains 51%, and the two host facilities would divide 8.5%. Once the state collects a cumulative total matching all sports betting taxes paid in fiscal year 2025, the operator's share would climb to 79.5%, and the state's cut would fall to 12%.

The Rhode Island Lottery, which oversees the current system through its IGT-powered Sportsbook Rhode Island platform, is formally opposing the bill. Lottery Director Mark Furcolo has described the expansion as likely unconstitutional, and both the Lottery and IGT have submitted testimony against it.

A comparable bill cleared the Senate in 2025 but stalled in the House without receiving a committee hearing.

Rhode Island launched sports betting in November 2018, among the first wave of states to do so. Bettors have wagered more than $3 billion in the state since then, and the state has collected $134 million in taxes.

FanDuel throws its weight behind sports betting bill

The Senate bill has drawn active support from at least one of the best sports betting sites.

FanDuel has come out in favor of the expansion legislation and is positioning itself as a potential entrant into the Rhode Island market if it passes.

The company did not compete for the contract that Bally's won through the Lottery's recent bidding process, and its decision to sit out that race was tied directly to concerns about the state's tax structure. The expansion bill addresses those concerns head-on.

A Spectrum Gaming Group report identified Rhode Island's 51% operator tax rate as the highest effective rate in the country for sports wagering. The legislation FanDuel supports would reduce that rate to 12%, arguing that broader operator access and a more competitive tax environment would produce greater overall revenue for the state.

Current figures give that argument some grounding. Sports betting generated $31 million in revenue between July and March, with the bulk of that coming through the Sportsbook Rhode Island app. At the same time, iGaming, which covers virtual slots and table games, has already become more lucrative than sports betting for Rhode Island's general fund.

The House has until the June 30 session deadline to act on the legislation.

Written by:
Charlotte Capewell

Charlotte’s love for all things iGaming shines through in everything she writes. From sports betting and U.S. legislation to prediction markets and beyond, she blends sharp analysis with storytelling that makes even the most technical topics come alive. Always chasing the next big scoop, Charlotte keeps a close eye on industry news, eager to share her excitement and insights with readers, whether they’re industry veterans or newcomers discovering iGaming for the first time. When she’s not deep in gaming headlines, you’ll probably find her glued to the F1, cheering on her favorite team, Williams, and driver. Her dream? To be trackside at the Las Vegas Grand Prix, notebook in hand, of course.