Summary of HB 8186 (Rhode Island, 2026)
Title: AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT — VIDEO LOTTERY, GAMES, TABLE GAMES AND SPORTS WAGERING
Session: 2026 | Introduced February 27, 2026 | Referred to House Finance
Jurisdiction: Rhode Island
Sponsors: Reps. Dawson, Corvese, Slater, Read, O'Brien, Voas (with multiple co-sponsors)
Status: As of action history, the committee recommended the measure be held for further study (April 29, 2026)
1) Main purpose and intent
- The bill seeks to redefine and restructure the regulatory framework for Rhode Island’s video lottery, table games, and sports wagering, with an emphasis on state supervision and revenue sharing among the state, host facilities, and sports-wagering vendors.
- It codifies changes to how sports wagering is hosted and administered at the Twin River Lincoln facility and the Tiverton facility, and it creates a framework for future competitive vendor participation.
2) Key provisions and changes
Definitions and scope (Section 1):
- Clarifies terms related to casino gaming, iGaming (online casino-style gaming), online sports wagering, and related revenue calculations.
- Sets forth definitions for hosting facilities, Lincoln and Tiverton gaming facilities, iGaming platform/vendor concepts, and revenue concepts (e.g., iGaming revenue, online sports wagering revenue, etc.).
- Establishes that iGaming and online wagering are conducted on the premises of a hosting facility and regulated by the Division of Lotteries.
Sports wagering operations and regulatory authority (Sections 42-61.2-2.4 and 42-61.2-3.3):
- The state, via the Division of Lotteries, will implement and operate sports wagering hosted at the Twin River Lincoln facility and the Twin River-Tiverton facility once those facilities are licensed for video lottery and table games.
- The Division has broad oversight powers, including:
- Linking, tracking, depositing, auditing, and reporting systems for sports wagering.
- Authority to collect and hold sports-wagering revenue in trust and oversee accounting and finances.
- Authority to monitor operations, audit compliance, and suspend/terminate activities for integrity concerns.
- Ability to define odds, bets, and rules through a sports-wagering vendor and to set marketing, promotions, and customer-data usage (subject to Division approval).
- Authority to oversee compulsive gambling programs and to promulgate necessary regulations.
- The hosting facilities and sports-wagering vendors must cooperate with surveillance, security, and reporting requirements.
- The Division may approve and regulate the employment of individuals involved in sports wagering and issue related regulations.
Vendor contracting and procurement (Section 42-61.2-3.3(a)):
- By January 1, 2027, the Division must issue an open invitation for sports-wagering vendor contracts and award 4 to 6 contracts.
- Vendors selected will be subject to licensing, ongoing compliance, and consumer protections.
- The RFP process will prioritize technical capability, regulatory compliance history, prior sports-betting experience, and commitment to maximizing state revenue while minimizing harm.
- The Division must promulgate implementing rules within 90 days of the section’s effective date.
Revenue allocation (Section 42-61.2-5):
- The act modifies the allocation of sports-wagering and online sports-wagering revenue among the state, host facilities, and the authorized sports-wagering vendor.
- Allocation formulas (subject to phase-in and affordability constraints):
- State: 51% of sports-wagering and online sports-wagering revenue until the state has received the amount generated by sports wagering and online wagering in FY 2025; after that, 12%.
- Authorized sports-wagering vendors: 32% initially, increasing to 40.5% to 79.5% after achieving FY 2025 revenue targets.
- Host facilities: 17% initially, decreasing to 8.5% after the revenue targets are met, with a stated prerequisite that host facilities must have received $4.5 million.
- Revenue deposited into the state lottery fund for administrative purposes, with the balance going to the general fund.
- Lincoln and Tiverton host communities receive annual flat fees: $200,000 each.
Effect on governance and licensing (general):
- The act clarifies governance structures and the Division’s authority over vendor contracts, marketing, and operations.
- It reiterates that the act does not create a separate license for hosting of sports wagering beyond the existing licensed video lottery and table-game retailers.
3) Who or what would be affected
- State of Rhode Island and its Department of Revenue Division of Lotteries:
- New regulatory framework and revenue-sharing structure.
- Expanded authority to regulate, audit, and oversee sports wagering hosted at specific facilities.
- Host facilities (Twin River Lincoln and Tiverton/Twin River Tiverton):
- Changes to revenue shares and eligibility for hosting sports wagering.
- Requirements to provide security, surveillance integration, accounting, and compliance with division directives.
- Eligibility for annual host payments and related marketing considerations.
- Authorized sports-wagering vendors (new and existing):
- Potential future contracting opportunities (4–6 vendors) and obligations under licensing, compliance, and consumer protection standards.
- Marketing, promotions, and data-use rules to be determined under division regulations.
- New England/local communities (Lincoln and Tiverton):
- Receive fixed annual payments for hosting sports wagering.
- Consumers:
- Online sports wagering and iGaming expansions subject to division rules and responsible-gaming provisions; enhanced oversight designed to protect players and ensure integrity.
4) Procedural and timeline aspects
- Effective date: The act takes effect upon passage.
- Open procurement timeline: By January 1, 2027, the Division must issue an open invitation for sports-wagering vendor contracts and award 4–6 contracts.
- Regulatory development: The Division must promulgate implementing rules within 90 days after the act’s effective date.
- Revenue phase-in: The allocation provision references a FY 2025 revenue benchmark to determine future share splits, implying a gradual transition toward the new distribution framework.
In short
HB 8186 revises Rhode Island’s video lottery and sports wagering landscape by clarifying definitions, centralizing operating control in the Division of Lotteries for sports wagering hosted at Twin River Lincoln and Tiverton, creating a competitive vendor process (4–6 contracts) by 2027, and realigning revenue shares among the state, host facilities, and vendors. It also strengthens regulatory oversight, marketing flexibility for vendors, and host community compensation, with proceeds directed to state and general funds after administrative needs are met.
