A recent R.I. Department of Revenue report shows that revenue from legalized iGaming could be $50M less than previously expected, according to a new financial report.
Rhode Island Senate President Dominick Ruggerio speaks at a Bally’s corporate event in 2021. Ruggerio is a sponsor of the state’s iGaming legislation. (Image: GoLocal)
The estimate is the latest from consulting firm Christiansen Capital Advisors LLC. The firm complied 12 months of gross iGaming revenue and compared data from the six states where iGaming is currently live. The firm estimates that Rhode Island could earn $162.6 million in the first five years of operations.
But that figure is short of the $210 million Bally’s says iGaming would bring to the state. Bally’s is the casino pushing the legislation and would operate online games through the International Game Technology platform regulated by the Rhode Island Lottery if the legislation is approved.
Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia generated $5.6 billion for the year ended March 31, 2023, according to the report.
Proposed iGaming Bill
Currently iGaming is illegal in Rhode Island, but its legalization has been a top priority for Senate President Dominick Ruggerio (D-Providence). Ruggerio is the lead sponsor of SB 948, which was approved by the governor last month. The bill would legalize iGaming in the state on Jan. 1, 2024.
Under the proposed bill, online casino slots and table games would be authorized by statute, and Bally’s would offer games through the IGT platform, which operates brick-and-mortar casinos in the state. The Rhode Island Lottery would operate as the chief regulator. This process is similar to online sports betting in the state.
iGaming includes the operation of casino-style games, such as slots and table games, offered via digital platforms through players’ own devices.
Rhode Island legalized retail sports betting in May 2018.
iGaming Opposition
But the bill faces significant opposition, including from the Rhode Island Lottery. Lottery director Mark Furcolo called the proposed bill “likely unconstitutional,” according to reports from the Providence Journal.
While the Rhode Island Lottery believes there is a legislative path for authorizing iGaming and is supportive of iGaming, it is (our) position that the bill as drafted is likely constitutional and must be revised to conform with the authorization under the 2012 and 2016 Voter Referendums related to casino gaming,” said Furcolo, according to the Journal.
No referendum is required under Ruggerio’s iGaming bill.
Many States Hesitant To Bet on iGaming
Currently, iGaming is legal in only six states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia.
Illinois is considering two versions of an Internet Gaming Act. Maine pushed its online casino legislation to 2024. New York, New Hampshire and Indiana are among the states that considered bills but will not add iGaming this year.
In its 2023 State of the States report, the American Gaming Association (AGA) says iGaming grossed $1.48 billion in the first quarter of 2023—a 22.7% increase in year-over-year revenue, according to the AGA.
The amount of tax revenue for each state depends on its own laws. For Rhode Island, the cut would be 41% for the overall iGaming revenue generated by its potential operator Bally’s Corp.
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