“Governor McKee needs to hear from Rhode Islanders like you who support more choice and competition.”
It sounds like a talking point promoting charter schools, but it’s actually the message that Rhode Island users of the FanDuel sportsbook app have been receiving when they travel over the border to Massachusetts to place a wager.
FanDuel is making a last-minute play to expand into Rhode Island by backing a bill that would allow between four and six sports betting vendors in the state. Sportsbook Rhode Island is currently the only company allowed to accept bets, and Bally’s is expected to open the second online sportsbook before the end of the year.
FanDuel did not seek the contract that Bally’s won, in part because it is urging state lawmakers to revamp the tax structure that currently applies to sports betting in Rhode Island. The bill that would expand vendors also includes tax changes.
A report released last year by Spectrum Gaming Group found that Rhode Island “has the highest effective tax rate in the country for sports wagering” at 51 percent.
The legislation that FanDuel is backing would lower the rate to 12 percent, with the argument that if Rhode Islanders have more betting options, it would generate more revenue.Sports betting brought in $31 million in revenue between July and March, with the vast majority coming from the Sportsbook Rhode Island app. iGaming, which allows people to play slots or table games virtually, is already more lucrative than sports betting for the state, and the gambling companies believe that market is poised to grow exponentially in the coming years.
It’s unclear if the legislation to expand online betting will be approved this year, although it is sponsored in the Senate by Majority Leader Frank Ciccone.
This story first appeared in Rhode Map, our free newsletter about Rhode Island that also contains information about local events, links to interesting stories, and more. If you’d like to receive it via email Monday through Friday, you can sign up here.
Dan McGowan can be reached at dan.mcgowan@globe.com. Follow him @danmcgowan.