Rhode Island to Become the Third State in America to Legalize Sports Betting
After Delaware and New Jersey, Rhode Island has now legalized sports betting, becoming the third American state to do so.
51 percent of the revenue that comes from sports betting will go to the state. So far, this is the highest percentage of revenue for a state in the United States. 32 percent of the revenue will go to the International Game Technology, an American gaming company, and 17 percent will be distributed between 2 casinos. This means that if a wager loses a bet of $100, then $51 goes to Rhode Island, $32 to the IGT, and the remaining $17 will be divided between the two casinos. The rates have not been well received by a number of people since a higher tax rate will shadow legal activities and give rise to illegal operators who try to avoid paying the tax altogether.
Sports betting activities will be going live at the Twin Rivers Casinos in cities of Tiverton and Lincoln on October 1 of this year.
The $9.6 billion budget for the fiscal year was signed off by the Governor last week. The state expects to receive revenue of $23.5 million up until July 2019 with this move. Lincoln and Tiverton, being the host cities, is expected to collect an annual compensation of $100,000 each.
The International Game Technology or IGT is the only seller for sports betting technology in the state of Rhode Island. The company has an office set up in Providence, the capital of the state.
State permits only land-based wagering at present
According to the current law, there will be no online sports betting activities, and gambling will be conducted only through land-based platforms. This could prove to become a disadvantage for Rhode Island if Massachusetts and Connecticut decide to allow wagers to place bets through online platforms. The state of Massachusetts is expected to launch sports betting activities by the end of 2018.
Experts in gaming and sports have said that all these developments are more than likely to give a phenomenal boost to the number of customers.
Talking about opening sports betting only through land-based platforms, a spokesman for the Department of Revenue for Rhode Island said that they wanted to tread the water first and make sure that the system was properly in place before proceeding with online platforms.
After the Supreme Court legalized sports betting earlier this year, states across America are pondering on how to legalize sports betting activities state-wise in the best way possible.