Rhode Island Becomes 7th US Jurisdiction to Launch Regulated iGaming

Rhode Island has officially broken ground on regulated online gambling, solidifying its position as the 7th US jurisdiction to do so. Residents in the Ocean State will now be able to bet on slot machines and table games using a mobile app or on computers from anywhere in the state. The official launch comes eight months after legislators passed Senate Bill 948, signed by Governor Dan McKee in June 2023.

Beginning noon on March 5th, all players aged at least 21 can now register for online casino accounts to play any casino games they choose. According to the Ocean State’s law, players must be physically within state borders to participate in iGaming activities. As such, Geolocation technology will be used to confirm players’ precise location to avoid cases of fraud.

Thanks to the latest developments, RI residents can now bet at their convenience without crossing borders into neighboring Connecticut as was previously the case. The new legislation allows players to register a casino account without having to show up in person at a brick-and-mortar location.

Bally: First Operator to Offer iGaming to Rhode Islanders

Bally’s Corporation, a leading iGaming operator with a presence in all the seven states that have legalized online gaming, will enjoy a monopoly as it received exclusive rights to offer iGaming in RI. The big launch was preceded by a 4-day trial where players were given early access to register on the platform.

The array of games that users can bet on includes online slots, live games, and table games, which have been available to on-premises gamblers. Bally’s online casino collection in the Ocean State kicked off with about 170 slots and table games on which players could place bets.

There’s a 4,000sq ft studio at Twin’s Rivers casino, where all the live dealer games will be streamed from. The studio will have live dealers on-site to provide real-time engagement and player support via video streams. The live casino games will be facilitated by Stakelogic, a live casino supplier providing the software and studio technology to run the operation. Stakelogic already has licenses in Michigan and Pennsylvania, and just last month, it successfully secured entry into the newly launched Rhode Island market by partnering with Bally’s.

From the start, Bally’s has been lobbying for iGaming law to be passed, working hand-in-hand with legislators to ensure a successful outcome. Craig Eaton, President of Rhode Island Operations at Bally’s, lauded the Corporation’s efforts to have a dedicated studio for igaming activities, saying:

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“The live gaming product is very exciting. Not many states do that at all. So, depending on demand, we are ready and have room to grow. We are pleased to launch this new gaming product, which is borne out of our partnership with the General Assembly, Governor McKee, and our regulators, the RI Department of Revenue, Division of Lottery, Department of Business Regulation, and RI State Police, to enhance state revenue and better position the State’s casinos in the competitive New England gaming market…As with all gaming operations, the State will retain complete regulatory control of iGaming, with nearly 62 percent of the slot revenue and 15 percent of the table game revenue directed to the State.”

Passing iGaming Legislation Not a Walk in the Park

Recent developments in the gambling industry have seen several states legalize and launch in-person casino and sports betting. However, only the likes of Rhode Island took it a step further to include iGaming in their gambling markets. According to gambling industry experts, getting legislators to okay iGaming legislation is an uphill task that has often faced many challenges from within and outside the Senate or House.

At the Next.io conference held on March 6th, former Michigan House Rep and current VP at Fantatics Brandt Iden had something to say about the current anti-online casino gambling sentiment among US lawmakers. He revealed that although some stakeholders and lawmakers have tried making some progress in legalizing iGaming in their respective states, the efforts were quite tricky and would not be easing any time soon.

So far, only RI has moved to launch online casino gaming since the beginning of the year, and analysts project that it may be the only state that will do so in the foreseeable future. This is because very few states have even discussed any proposed bills relating to iGaming. Most critics have opposed any such efforts, citing player protection concerns, including the risks of addiction and losing large sums.

At the beginning of the year, the state voted as the most likely to pass online gaming legislation was New York. However, all hopes were dashed when the iGaming agenda was excluded from this year’s fiscal budget.

Securing a Spot in a Competitive Gambling Industry

Rhode Island has always been a pacesetter regarding gambling regulations, and it doesn’t come as a surprise that the state would be among the pioneers in the iGaming sector. Back in 2018, the Ocean State passed sports betting legislation mere months after the US Supreme Court canceled PASPA, a 1992 law that prohibited sports betting in all states, save for Nevada.

For a state with a relatively low population compared to others, making such moves has proved productive, boosting the economy in several ways. However, recent sports betting figures have been dwindling, necessitating the expansion of the industry to include iGaming. For instance, the total betting handle for sports betting dropped from $532 million in 2023 to $413.6 in the 2022 calendar year.

According to Bally’s, interactive casino gaming has been a key revenue driver for most economies. The operator reported an 8.6% ($2.45 billion) rise in revenue for the 2023 fiscal year in the sector in general. In North America, the growth was much more impactful, as there was a 37.8% revenue rise in interactive gambling, totaling $112.6 million. Given that iGaming is legal in only seven states, the coming years may see North America become a key player in this gambling category globally.

Optimism on a Possible Positive Economic Impact

As Rhode Island takes the bold step into the world of regulated iGaming, industry experts are looking forward to the potential the new market brings to the state’s economy. According to the passed bill, the state imposes a 50% tax on all online slots and an 18% tax on live table games.

Bally’s has projected further growth in the coming months, and with Rhode Island’s entrance into the North American market, all eyes are on the state regarding how the sector will fare during the second half of the 2024 FY.