The bill amends Chapter 42-61.2 of the General Laws, which governs "Video Lottery Games, Table Games and Sports Wagering" in Rhode Island. It introduces key definitions, including "online sports wagering," and clarifies the conditions for these activities, including age restrictions and the requirement for a server-based gaming system at a hosting facility. The bill details revenue calculations for online gaming and sports wagering, specifying what constitutes gross revenue and permissible deductions. It differentiates between contracts entered into before and after the act's effective date, while removing certain language to streamline definitions and enhance clarity.

Additionally, the bill establishes the Division of Lotteries' role in overseeing sports wagering, including the authority to implement operational controls and ensure compliance with responsible gaming standards. It mandates a "written marketing plan" from online sports-wagering vendors, which must be approved by the Division. The legislation outlines a process for selecting sports-wagering vendors, aiming to have no less than four and no more than six vendors by January 1, 2027, with a focus on vendors' technical capabilities and compliance history.

Revenue allocation is modified, increasing the vendors' share to seventy-nine and one-half percent (79.5%) of sports-wagering and online sports-wagering revenue after the state has received the amount generated in fiscal year 2025. Host facilities will receive eight and a half percent (8.5%) of sports-wagering revenue and online sports-wagering revenue, with a guarantee of no less than four million five hundred thousand dollars ($4,500,000) from these revenues. The bill aims to create a structured and regulated environment for sports wagering in Rhode Island, enhancing oversight and promoting responsible gaming practices.