Rhode Island Considers Ending Online Sports Betting Monopoly to Boost Market Growth
Rhode Island’s Current Online Sports Betting Monopoly
Rhode Island is currently evaluating the possibility of ending its exclusive control over online sports betting. The state aims to expand its market and meet the rising demand for diverse wagering options.
The Monopoly Model in Rhode Island’s Online Sports Betting
After the repeal of the federal ban under PASPA, many US states established competitive sports betting markets. In contrast, Rhode Island has maintained a monopoly model for its online sports betting operations.
International Game Technology (IGT) holds the exclusive rights to operate the state’s online sports betting platform through the Sportsbook RI app. However, discussions have begun on whether opening the market to additional operators could benefit the state’s economy and bettors alike.
Earlier in the year, the Rhode Island Department of Revenue Lottery Division sought information from the industry to gauge interest in expanding the online betting market. They discovered that eight major operators showed interest, including Bally’s, which manages Rhode Island’s two casinos, along with BetMGM, DraftKings, Fanatics, FanDuel, Kambi, and OpenBet. IGT’s exclusive contract is scheduled to end in November 2026.
Legislative Moves Toward Market Liberalization
Recently, lawmakers introduced legislation aimed at dismantling IGT’s monopoly to allow multiple sportsbook operators. While the bill gained traction in the Senate, it did not progress in the House before the session ended. Similar efforts were made the year before.
Advocates argue that allowing more sportsbooks would increase tax revenues. Rhode Island imposes a 51% tax on online betting, and the state earned approximately $14 million in tax revenue from online sports betting in 2024.
Critics of the monopoly highlight that a lack of competition can harm bettors by limiting choice and innovation. Additionally, if the sole operator experiences technical difficulties, it can prevent users from placing bets, negatively impacting the overall betting experience.
