The budget also sets out provisions for the state to take 51% of revenue made from sports betting. However, Rhode Island, the smallest state in the US, will limit sports betting to land-based services only, with no current plans to launch online.
President of the Senate, Dominick J. Ruggerio, said the budget “maintains the progress we have made in lowering taxes to improve our business climate while also investing in economic development, and it provides Rhode Island with the highest percentage of revenue in the nation for sports wagering.”
Sports wagering is estimated to provide US$23.5 million in new revenue to the state in 2019. The amended legislation directs 51% of net sport-gaming revenue to the state, with operator IGT receiving 32%, and Twin River receiving 17%.
According to the Reuters news agency, 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.”
Rhode Island follows Delaware and New Jersey in passing new sports betting laws in the wake of the Supreme Court’s decision to overturn the federal 1992 Professional and Amateur Sports Protection Act (PASPA).
Last week, Mississippi also took a step closer to legalising sports betting after regulators in the state approved a set of new rules for such activities.
“Sports wagering provides the state with a revenue stream that supports critical priorities, such as investing in roads and schools, without increasing the tax burden on citizens. Rhode Island taxpayers will be receiving the highest percentage of revenue in the nation from sports wagering,” President Ruggerio concluded.
Source: GMB
