Mobile sports gambling in R.I. is on the fast track



Rhode Island’s proposed venture into online sports gambling sped through the state Senate Wednesday despite concerns it will contribute to problem gambling and create a monopoly ultimately costing the state money.

PROVIDENCE — Rhode Island’s proposed venture into online sports gambling sped through the state Senate Wednesday despite concerns it will contribute to problem gambling and create a monopoly ultimately costing the state money.

“I am hoping we can get up and running relatively quickly,” said Senate President Dominick Ruggerio, chief proponent of sports betting in the state, after the vote. “And I think there is going to be a lot of people who will support online gaming because I think it will be more convenient... I’d like to see it passed quickly so they can start implementing it and they can get revenue this fiscal year.”

The 32-4 vote moves the online gambling proposal to the House, where Speaker Nicholas Mattiello has introduced a mirror version of Ruggerio’s bill that is expected to get a hearing the week after next.

Ruggerio’s bill, which matches language in Gov. Gina Raimondo’s budget plan, would allow people to bet on sports from anywhere in Rhode Island through an app or online platform the Rhode Island Lottery would commission and regulate.

Bettors would have to sign up for an account in person at either of Twin River’s casinos in Lincoln or Tiverton before they could begin using the online app. Computer servers supporting it would have to be located at Twin River.

As with the in-casino sports gambling that is currently happening at Twin River, Rhode Island would receive 51 percent of all profits from online gaming, Twin River would receive 17 percent and the company running the digital platform would get 32 percent.

Raimondo’s budget expects $3 million in new sports betting revenue through online wagers next fiscal year under the assumption the app will not be up and running until about six months through the year.

The no votes, all Democrats, had different reasons for their opposition. They were Senators Louis DiPalma of Middletown, Dawn Euer of Newport, Harold Metts of Providence, and Sam Bell of Providence.

“By passing this law we would be giving a monopoly on sports gambling to Twin River,” Bell said. “This is America. We are supposed to be a free market economy where we have free market with competition. Why can’t we instead set up a real online gambling market where new businesses start where we can have competition and a bunch of different companies to offer the best possible online gambling product.”


Bell said voters should get a chance to approve online sports betting and said if the online law passes he wouldn’t be surprised to see it challenged in court.

Providence-based IGT was the sole bidder for the contract to run Rhode Island’s sports book within Twin River, which includes setting odds for bets and running the back-end technology.

In testimony to lawmakers, national daily fantasy sports site Draft Kings has suggested Rhode Island create something closer to the online gambling market in New Jersey, where it is one of multiple companies offering online betting.

Draft Kings argued that limiting gamblers to using one particular app they may not be familiar with and making them go to a casino to sign up will prevent the state from capturing a large part of the market now dominated by illegal offshore sites.

After the vote, Ruggerio said he was open to allowing more gambling sites to get involved at some future point, but is now focused on getting online gambling up and running as quickly as possible.

It’s unclear whether the Lottery would go out to bid again for a company to create the new app or whether it could employ multiple apps.

Metts said he voted against the bill, as he has against previous gambling expansions, because of the damage caused by problem gambling.


“Families are hurt,” Metts said. “I have known cases where the husband has gambled all the money away and there is no money for food or rent.”

Euer said she voted against the bill because her constituents in Newport, after their years of experience with the now-closed Newport Grand, are opposed to it.

“Because they served as a host community for a number of years, folks are familiar with gambling and didn’t support it and had an opportunity to see it firsthand,” Euer said.

This article is a reprint from ProvidenceJournal.com   To view the original story and comment, click here


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