In an unexpected downturn, the state of Rhode Island has reported a sizable drop in sports betting revenue for February, with figures falling sharply to $2.9 million. This represents a significant downturn from the $5 million revenue recorded in January. Year-on-year comparisons further underscore the decline, with revenue for the same month last year standing at $3.6 million, leading to a 19.4% shortfall this February.
Additionally, the overall betting turnover, known as the handle, has also decreased by 13.4%, sinking to $38.8 million in February compared to $44.8 million in January. The handle for the month similarly underperformed relative to the previous year, showcasing a 10% decrease from February last year, which then recorded a handle of $43.1 million.
The realm of online betting continues to eclipse retail operations, with $30.4 million, or 78.4%, of the total February handle generated via digital platforms. The winnings paid out by online operators amounted to $30 million.
Retail sportsbooks, on the other hand, recorded $8.4 million in total bets placed. Among them, Twin River led with $6 million, while Tiverton Casino accounted for $2.4 million in wagers. Despite the larger volume of bets at Twin River, it was Tiverton Casino that ultimately generated more revenue, accumulating $288,000 compared to Twin River’s revenue of $206,000.
When reviewed over an eight-month period, Rhode Island sportsbooks have experienced a general downturn. The cumulative handle has reached $305.9 million, with revenue at $26.7 million. Both these figures have seen a notable retreat from the same period during the previous financial year, by 18.6% for the handle and 30.1% for revenue respectively.
In the wake of the sports betting revenues’ decline, a new development in Rhode Island’s gambling landscape emerged on March 5. The state officially became the seventh in the United States to introduce igaming, trailing almost eight months after the legislation was first passed on June 22, 2023. Rhode Island residents can now engage in digital slots and table games through a desktop platform or an iOS mobile application, expanding the state’s gambling footprint.
Bally’s Corporation, which already enjoyed a casino monopoly in Rhode Island, has effectively broadened its exclusive rights into the igaming domain, following Governor Dan McKee’s signing of Senate Bill 948 into law. This move consolidates the 20-year no-bid contract that legislators sanctioned in 2021, granting Bally’s and its supplier, IGT, the rights to operate the state’s dual land-based casinos, Bally’s Twin Rivers Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel.
To support igaming’s debut in Rhode Island, Bally’s constructed a 4,000 square-foot studio at Twin Rivers dedicated to Live Dealer Table Games. The regulation and oversight for igaming is entrusted to the Rhode Island Division of the Lottery, which also supervises the Bally’s casinos within the state. This extension of responsibility is managed under the auspices of the division’s director, Mark Furcolo, who has been granted the authority to establish “reasonable” rules and regulations concerning igaming.
The igaming law prescribes the use of geolocation technology to verify that players are situated within Rhode Island’s borders. Nonetheless, it accommodates certain exceptions, allowing out-of-state play in scenarios where Rhode Island’s Division of the Lottery reaches reciprocal agreements with counterparts in other states.
As Rhode Island adapts to the recent inclusion of igaming and contends with the reduced revenue from sports betting, these legislative strides and opportunities in digital gambling may pave the way forward for the state’s overall gambling industry.
