Rhode Island has followed Delaware and New Jersey to become the third US state to legalize sports betting. However, the state will take 51% of the revenue from sports betting - the highest percentage of revenue in the nation for sports wagering - with 32% going to vendor International Game Technology (IGT) and the remaining 17% earmarked for two casinos.
“High tax rates hinder the legal market’s ability to compete with shady, illegal operators that don’t pay taxes back to the state,” American Gaming Association spokeswoman Sara Slane told Reuters.
Sports wagering is set to go live 1 October at two Twin Rivers Casinos, in Lincoln and Tiverton. Rhode Island won't allow online betting just yet.
The move is expected to provide the state with $23.5 million up to July 2019. Lincoln and Tiverton expect to collect $100,000 each in annual “compensation for serving as the host communities for sports wagering”. READ SO: SPORTS BETTING IN UNITED STATES: SUPREME COURT MADE THE DECISION THAT CAN CHANGE FUTURE
Wagers will only be allowed from land-based sources, with no provision in place for online betting in the current law, which could put Rhode Island at a disadvantage if neighboring Massachusetts and Connecticut allow customers to place bets through the Internet. Massachusetts is gearing up for sports betting by the end of 2018.
“It could create a flight of customers,” Daniel Wallach, an expert in gaming and sports law, told Reuters.
Paul Grimaldi, a spokesman for the Rhode Island Department of Revenue, said: “We wanted to start small and make sure we have the operational system down pat in the casinos before we explore online or mobile.”
Experts suggest illegal betting in the United States is a $50 billion to $150 billion industry.
