Sports betting in Rhode Island to underperform
A new study shows that revenue estimations for the sports betting market in Rhode Island might have been off.
US.- A new study by Christiansen Capital Advisors showed that initial projections for sports betting revenue might have been off. It claims that sports betting won’t bring as much money as initially expected.
The study estimates that sports betting would only bring in US$2.7 million for Rhode Island by the end of the current fiscal year in July. That number is considerably lower than the US$23.5 million that was predicted in initial estimations. It is also significantly lower than Governor Gina Raimondo’s projection of US$11.5 million.
Furthermore, the study also said that a new Taunton casino would also affect Rhode Island’s gaming revenue. If it opens on June 1, 2021, total gaming revenue in the state would fall by US$79.8 million. Thus, the state’s share would fall by US$37.3 million between fiscal 2021 and fiscal 2024.
If Massachusetts or Connecticut don’t open new casinos, gaming revenue in Rhode Island would continue to grow until fiscal 2021. After that, they expect it to flatten out for several years without further expansion.
“CCA would recommend that the State of Rhode Island should prepare for the worst and hope for the best because revenue derived from sports wagering will be inherently volatile producing years of feast and famine,” the study said.
