Rhone Island Gambling Industry Banking on Online Gambling

Beginning on Monday, December 1, 2020, two of Rhode Island's top retail casinos were forced to shutter due to the COVID-19 pandemic. The two casinos in question are the Twin River Casino Hotel in Lincoln and the Tiverton Casino Hotel in Tiverton.

The move came amid pressure from the government for nonessential businesses like gyms, movie theaters, casinos, and bowling alleys to close down for a minimum of two weeks. This will be the second time businesses in this part of the state were forced to take such measures in an effort to control the spread of the virus.

According to Rhode Island Gov. Gina Raimondo in a statement to the press, "This will not be easy, but I am pleading with you to take it seriously,” later stating, “Choosing to gather with those outside your household will have ripple effects that will increase the strain on our hospitals and put lives at risk.”

This latest closure of the two aforementioned casinos will have a profound effect on a gambling industry that has already had to endure massive losses in business. Through September of this year, the aforementioned two casinos had recorded $248.7 million in gaming revenue, a number which is down more than 51% compared to the same nine-month period from last year.

If there is a silver lining for Rhode Island's gambling industry, it would have to be that sports gamblers have certainly embraced the opportunity to bet on sports from the comfort of their living rooms.

The state's first retail sportsbooks opened in late 2018 with online/mobile gambling getting the go-ahead about a year later. Since the first legal sports wager was taken in November of 2018, the state has handled $423.6 million in bets, which resulted in nearly $34.1 million in revenue for the state's bookmakers.

It's worth noting that the early handle from internet wagers was relatively small due to the fact sports bettors had to show up in person to open an online account. About the time the pandemic had taken hold of the industry, the state began allowing bettors to register online. The bettors responded by taking to their mobile devices to place bets.

In the month of October 2020, 44% of the total handle ($34.7 million) came from online bettors. While none of these numbers can compete with what is coming out of New Jersey, Nevada, or Pennsylvania, these are still encouraging totals for a state with a small population.