Rhode Island Leading Charge for Legalized sports betting In New England

The smallest state in New England wants a large piece of the sports betting pie, and Rhode Island has taken the first necessary steps to secure a potentially massive payday.

Following the United State Supreme Court’s decision to overturn a 1992 federal law that barred sports betting in most places, the Ocean State became the first state in New England to legalize sports wagering.

Gov. Gina Raimondo on June 22 signed a $9.6 billion budget for the 2019 fiscal year that included sports gambling.The budget, which went into effect July 1, gives the state 51 percent of the revenue from sports betting.

“Sports wagering provides the state with a revenue stream that supports critical priorities, such as investing in roads and schools, without increasing the tax burden on citizens,” state Senate president Dominick J. Ruggerio said in a statement. “Rhode Island taxpayers will be receiving the highest percentage of revenue in the nation from sports wagering.

“Legal sports wagering in Rhode Island will provide revenue for critical state services while offering a new entertainment option for Rhode Islanders.This provides a legal means for Rhode Islanders to enjoy a form of entertainment in which many already engage.”

International Game Technology PLC will be the state’s sports betting technology vendor. IGT, a U.K. based company that has an office in Providence, was the only company to place a bid for the contract.

Sports wagering only will be allowed in two Twin River owned casinos — located in Tiverton and Lincoln — while online and mobile sports wagering will not be offered in the state.With those two options off the table, the sports gaming is projected to generate $23.5 million. Of that, the state will take home 51 percent, while the vendor IGT will take 32 percent and the casinos will take the remaining 17 percent.

Rhode Island Lottery will be tasked with operating sports wagering in the state. Betting activity is not expected to go live until the fall.

While Rhode Island will initially attract a number of bettors from around the New England area, the state could soon be at a disadvantage if neighboring states decide to legalize sports wagering and allow online and mobile gambling. The state’s department of revenue, which oversees the lottery, decided to take a cautious approach with sports wagering in order to avoid any pitfalls, Paul Grimaldi, chief of information and public relations for the Rhode Island department of revenue, said in an interview.

“It’s a measured approach,” Grimaldi told NESN.com. “We have confidence in our casino operators and our security systems and our oversight of the physical locations. This is a safe and secure way for us to take a step into this new market.

“If you remember from the internet bubble days, the mantra has always been ‘first mover advantage,’ but that’s not always the case. Some of the first movers in the internet space flamed out. So the people who came later to the game learned from the mistakes.So we’d rather take a cautious approach.”

Like many other states that have been working on legalizing sports wagering, Rhode Island had to face some regulatory issues, chief among them being the issue of college athletics.

    Leave Your Comment Here