Lottery Impacts On Rhode Island’s Sports Betting Revenue Expectations
The lottery recently announced that the state of Rhode Island is expected to bring in only about $15 million as revenue from sports betting in the next fiscal year. The figures are half of what was initially expected and are based on a report by a consultant.
According to Paul Grimaldi, spokesperson for the Revenue Department, the new estimate is more in line with the performances of the two sportsbooks ever since sports betting was launched in the state late last year.
After the U.S Supreme Court legalized sports betting in all states last year in May, several states were quick to make sports betting legal in their jurisdictions. Rhode Island was one of the first few states to do so, and like many other states that did the same, is still waiting to see profits.
The governor of the state had proposed a 2020 budget, which counted on an estimated $30 million revenue from sports betting next year. However, Christiansen Capital Advisors, LLC, the consultant which has been hired, predicts that Rhode Island will not benefit much from sports betting until 2024. Additionally, it also estimated that the state would rake in $2.65 million this fiscal year.
It is important to note that these estimates are based on the present gambling landscape. They may decrease if a casino opens in Taunton, Massachusetts, or if neighboring Massachusetts and Connecticut decide to legalize sports betting.
Market growth looks positive, lottery director says
According to the consultant, a major percentage of the annual revenue is expected to come from online sports betting. The state will launch this later this summer, just in time for the start of preseason football.
This year, Rhode Island had previously expected to bring in about $11.5 million off sports betting. However, it appears the state will miss its target mostly because of the results of the Super Bowl. When the Patriots ow and covered the spread, the sportsbooks of the state lost a total of $2.35 million.
March was a great month for the sportsbooks due to a high number of bets from fans of college basketball. The profit for the month was at an all-time high of $1.5 million. After all, expenses are subtracted, the state gets 51 percent of the revenue.
According to Gerald Aubin, Lottery Director, the market is likely to see steady growth, and the fact that neighboring Connecticut and Massachusetts haven’t legalized sports betting is working well for Rhode Island.
