Overview of the Rhode Island Sports Betting Market
Rhode Island was among the first states to legalize sports betting following the 2018 repeal of PASPA (the Professional and Amateur Sports Protection Act). On June 22, 2018, Rhode Island Governor Gina Raimondo signed a $9.6 billion budget for fiscal 2019 that legalized sports betting and gave the state 51 percent of the revenues from sports wagers (Reuters, 2018). The state's initial jump into sports betting began in November 2018, with retail sportsbooks launching at Twin River Casino in Lincoln and Bally’s Tiverton Casino. These operations are managed by the Rhode Island Lottery, which serves as the central governing body for both retail and online betting platforms (Rhode Island Lottery, 2024).
In 2019, Rhode Island expanded its offerings by launching its online sports betting platform, Sportsbook Rhode Island. This platform was developed through a partnership between the Rhode Island Lottery, IGT, and William Hill. The Sportsbook Rhode Island app, available for iOS and Android devices, allows bettors to place wagers anywhere within state lines, utilizing geolocation technology to ensure compliance.
Rhode Island’s sports betting revenue is funneled directly into the state's general fund, which supports public programs, including education, infrastructure, and problem gambling initiatives (The Newport Buzz, 2024). The Rhode Island Lottery contributed $426.4 million to the Rhode Island General Fund for the fiscal year ending June 30, 2024.
Despite its small population of 1.1 million, Rhode Island has established itself in per-capita sports betting revenue generation. The state’s centralized, lottery-managed model ensures regulation and consistent tax contributions, with a 51% tax rate on net sports betting revenue—one of the highest in the U.S., alongside New York and New Hampshire.
Annual Sports Betting Growth in Rhode Island
Monthly Sports Betting Growth in Rhode Island
RI Historical Sports Betting Revenue Data
According to the Rhode Island Lottery’s financial reports, the State’s sports betting market has shown steady growth since its launch in 2018, with notable fluctuations in both handle and revenue.
2018–2023 Overview
In its first year, Rhode Island had a sports betting handle of $13.77 million and sports betting revenue of $1.03 million, reflecting its initial retail-only market. Following the introduction of online sports betting in 2019, the handle went up to $245.81 million, with Rhode Island sports betting revenue reaching $17.81 million, marking a significant expansion in market engagement.
By 2021, the Rhode Island handle had more than doubled to $454.46 million, generating $38.75 million in sports betting revenue. The market peaked in 2022, with a handle of $532.61 million and sports betting revenue of $49.3 million, supported by a strong performance during the NFL season games and March Madness gambling. However, last year in 2023 saw a slight decline, with the handle dropping to $461.28 million and gross revenue to $40.28 million, largely due to reduced betting activity during slower sports months with no games.
January–September 2024
The year began strongly in January 2024, with a handle of $44.81 million and sports betting revenue of $5 million due to the NFL playoff games and the Super Bowl. Despite a slight dip in February to $38.76 million, sports betting revenue in Rhode Island remained healthy at $2.89 million, maintaining a hold of 7.45%.
Spring and summer brought steady, albeit lower, activity, with handles averaging between $33 million and $44 million. The lowest handle was recorded in July 2024 at $24.85 million, with Rhode Island sports betting revenue of $2.72 million. This seasonal dip is expected during a period with fewer major sports events.
By September 2024, the market rebounded, driven by the start of the NFL games and college football games. The handle rose to $43.6 million, with Rhode Island sports betting revenue reaching a peak of $5.27 million and a hold percentage of 12.09%, the year's highest monthly sports betting revenue.
Tax Contributions
From January to September 2024, Rhode Island collected over $15.1 million in tax revenue, with September contributing the highest amount of $2.69 million. The state’s 51% tax rate ensures that a substantial portion of sports betting revenue is directed toward the general fund, supporting essential public programs and addressing problem gambling initiatives.
Sports Betting Taxes and Revenue Allocation
A 51% tax rate is imposed on RI sports betting revenue, one of the highest in the United States. This tax applies to net revenue generated from retail and online sports betting operations in the state, with significant contributions coming from the state-run Sportsbook Rhode Island app and retail sportsbooks at Twin River Casino and Bally’s Tiverton Casino.
By statute, the Rhode Island Lottery transfers all sports betting tax revenue to the State General Fund, which supports critical public services that benefit all Rhode Island residents. The fund is allocated toward:
- Tax Relief: Easing the tax burden for residents through statewide programs.
- Education: Financing public schools, improving infrastructure, and enhancing educational programs.
- Public Safety and Law Enforcement: Supporting police, fire departments, and emergency response services.
- Human Services: Providing resources for healthcare, social services, and assistance for vulnerable populations.
Additionally, the Rhode Island Legislature is responsible for appropriating money from the General Fund among the state’s 39 cities and towns, ensuring equitable distribution of resources to address local needs. (Rhode Island Lottery, 2024)
A portion of the revenue is also directed to programs addressing problem gambling and funding initiatives on prevention, education, and treatment for people affected by gambling addiction.
This allocation of sports betting tax revenue shows Rhode Island’s commitment to leveraging its sports betting industry to enhance public services and support its communities. The system generates significant funds and ensures these resources benefit the state’s residents directly.
Future Outlook and Projections for Rhode Island Sports Betting
Rhode Island's sports betting market has experienced consistent growth since its inception in 2018. However, the state's relatively small population presents inherent limitations on market expansion. Rhode Island, once a leading player in the New England sports betting market, is experiencing a decline in revenue due to increasing competition from all neighboring states like Connecticut and Massachusetts. Sportsbook revenues dropped from $509.5 million in fiscal 2023 to $458.8 million in fiscal 2024, reflecting the challenges of maintaining regional dominance. Rhode Island sits among As more states legalize sports betting, Rhode Island must adapt by exploring innovative strategies to attract both local and out-of-state bettors and sustain its revenue streams. (SCCG Management, 2024)
Challenges and Opportunities in the Rhode Island Sports Betting Market
Challenges
- Population Constraints: With a smaller population, there are challenges in generating sports betting revenue comparable to larger states. This limits the total addressable market for both bettors and operators. (SCCG Management, 2024)
- Regional Competition: All states neighboring Rhode Island have legal sports betting, including New York, New Jersey, Philadelphia, Massachusetts, and New Hampshire, which dwarf Rhode Island sports betting revenue. With many more sports betting options and the potential for more attractive odds and even promotions, very little travel between borders could draw bettors away from Rhode Island's market.
- High Tax Rate: Rhode Island’s 51% tax rate on sports betting revenue, among the highest in the U.S., may deter new operators from entering the market. This limits competition and innovation, potentially capping growth.
Opportunities
- Tax Policy Reforms: Adjusting the 51% tax rate could incentivize additional sportsbooks to enter Rhode Island, increasing competition and providing bettors with more options.
- Cross-State Collaboration: Developing regional betting pools or agreements with neighboring states could position Rhode Island as a leader in cross-state betting, leveraging its central New England location.
Rhode Island Snapshot
| Key Aspect | Details |
|---|---|
| Population | Approximately 1.1 million residents as of 2024. (World Population Review, 2024) |
| Political Affiliation | Predominantly Democratic, with a Democratic trifecta controlling the governorship and both legislative chambers. (270towin.com, 2024) |
| Year Sports Betting Legalized | It was legalized on June 22, 2018, when Governor Gina Raimondo signed it into law. (Reuters, 2018) |
| Number of Sportsbooks Operating | DraftKings is the sole online sportsbook licensed in Rhode Island. |
| Gross Gaming Revenue (GGR) 2023 | $40,277,816 |
| Sports Betting Handle 2023 | $461,283,426 |
| Professional Sports Teams | Rhode Island does not have professional sports teams but is home to passionate sports fans, often supporting nearby teams like the New England Patriots and Boston Celtics. |
FAQs on Rhode Island Sports Betting Revenue
Rhode Island Sports Betting Revenue Trends
How much was Rhode Island sports betting revenue in 2023?
In 2023, Rhode Island sports betting revenue totaled $40,277,816 in gross revenue, a decline from the previous year’s record-breaking performance.
What was Rhode Island's handle for sports betting last year?
Rhode Island's sports betting handle in 2023 was $461,283,426, covering the total amount wagered online and in retail locations like Twin River Casino and Bally's Tiverton Casino.
What trends have been observed in Rhode Island’s sports betting market?
Rhode Island sports betting revenue has grown consistently since launching in 2018.
How does Rhode Island's small population affect sports betting revenue?
Rhode Island’s small population of approximately 1.1 million limits the potential size of its betting market compared to larger states. However, high per-capita participation keeps the state's sports betting revenue competitive with other one-operator states like Oregon.
Legal and Operational Aspects of Rhode Island Sports Betting
When was sports betting legalized in Rhode Island?
Legalized sports betting in Rhode Island began on June 22, 2018, when Governor Gina Raimondo signed the law. The first retail sportsbooks launched in November 2018, with online sports betting following in 2019.
Who manages sports betting operations in Rhode Island?
The Rhode Island Lottery oversees all sports betting operations, including the DraftKings online platform and retail locations at Twin River Casino and Tiverton Casino.
How many sportsbooks operate in Rhode Island?
Rhode Island has a single sportsbook operator, DraftKings, licensed by the state lottery to provide online and retail betting.
How is online betting regulated in Rhode Island?
Rhode Island uses geolocation technology to ensure all online wagers are placed within state lines, complying with federal and state regulations.
Tax Revenue and Allocation
What is Rhode Island’s tax rate on sports betting revenue?
Rhode Island imposes a 51% tax rate on net revenue from sports betting. This rate, among the highest in the U.S., applies to both online and retail operations.
How is Rhode Island’s tax revenue from sports betting used?
Tax revenue from Rhode Island sports betting is directed into the state's general fund, benefiting key public programs like:
- Education: Enhancing public schools and infrastructure.
- Public Safety: Supporting law enforcement and emergency services.
- Problem Gambling: Funding initiatives for prevention and treatment.
How much did Rhode Island collect in sports betting tax revenue last year?
In 2023, Rhode Island collected over $20.5 million in tax revenue, directly supporting programs funded by the general fund.
Market Challenges and Opportunities
What challenges does the Rhode Island sports betting market face?
Key challenges include:
- Small population: Limits the market size for sports betting.
- Regional competition: Neighboring states like Massachusetts and Connecticut offer more operators, promotions, and competitive odds.
- High tax rate: Rhode Island's 51% tax rate may discourage additional operators from entering the market.
What opportunities exist for Rhode Island’s sports betting market?
Rhode Island can explore:
- Tax reforms: Adjusting the tax rate could attract new operators and increase revenues.
- Promotions and engagement: Offering bettor-friendly promotions through DraftKings could enhance market activity.
- Regional partnerships: Collaboration with neighboring states for shared betting pools could boost engagement.
Betting in Rhode Island: Key Details
What sports do Rhode Islanders wager on most frequently?
Football is the most popular sport for bettors in Rhode Island, with many supporting teams like the New England Patriots. Basketball and March Madness also drive significant wagering activity.
Can Rhode Islanders bet online?
Yes, online sports betting is available through the DraftKings platform, allowing residents to place wagers anywhere in the state.
What are the busiest months for Rhode Island’s sports betting handle?
The January Super Bowl period and September NFL kickoff season are typically the highest-performing months for Rhode Island’s handle and revenue.
General Information
How does Rhode Island perform in the national sports betting market?
Despite its small population, Rhode Island performs well on a per-capita basis due to its centralized state lottery management and consistent bettor engagement. Similar revenue can be seen at other one-operator states like Washington and New Hampshire.
How does Rhode Island benefit from legalized sports betting?
Legalized sports betting generates substantial tax revenue for Rhode Island, supporting education, infrastructure, public safety, and problem gambling programs.
What role does the Rhode Island Lottery play in sports betting?
The Rhode Island Lottery regulates all aspects of island sports betting, ensuring compliance, managing revenue, and funneling tax contributions into the general fund.
Are there other forms of gambling in Rhode Island?
In addition to sports betting, Rhode Island offers video lottery, casinos like Twin River and Tiverton, and popular games like Mega Millions.
What are the rules for payouts and winnings in Rhode Island?
DraftKings processes payouts, with credit and payment regulations overseen by the Rhode Island Department of Revenue.