Rhode Island to launch second online sports betting option as Bally’s wins license

Rhode Island will soon expand its online sports betting market after the Rhode Island Lottery awarded Bally’s Corporation a tentative five-year license to operate a second digital sportsbook in the state.

The decision ends Rhode Island’s single-operator online betting system that has been in place since mobile wagering launched in 2019. Bally's already operates the state’s in-person sportsbook.

“Bally’s is thrilled to have been awarded a second sports betting license by the State of Rhode Island,” company spokesperson Patti Doyle said in a statement. “We appreciate the confidence and trust the state has placed in our ability to provide a best-in-class product — built for scalability, innovation, and the evolving demands of modern bettors — which will generate additional revenue to benefit the Rhode Island taxpayers.”

Bally’s was selected from just two bidders responding to the Lottery’s request for qualifications, which closed February 19. The only other applicant was Rush Street Interactive, a Chicago-based gaming company.

Contract terms are still being finalized, according to Rhode Island Lottery spokesperson Paul Grimaldi. “The date cannot be earlier than Nov. 26, 2026, which is the date the exclusivity within the contract with IGT expires,” he said in an email to Rhode Island Current.

The current online sportsbook, Sportsbook RI, is operated by IGT, which has run the state’s digital betting platform since September 2019.

Despite the arrival of a new competitor, IGT will remain involved in the market. The Rhode Island Lottery extended its contract with the company in January, allowing its PlaySports technology to continue powering both retail and online betting through 2028.

Some industry observers were surprised by the lack of participation in the bid from major sports betting operators such as DraftKings and FanDuel, both of which operate in neighboring Connecticut and Massachusetts markets.

Both firms were among eight companies that initially responded to a preliminary request for interest issued last summer by the Rhode Island Lottery. That outreach followed recommendations from consulting firm Spectrum Gaming Group, which advised the state to add four to six online sports betting vendors to remain competitive with surrounding states. 

However, it is believed that the state's proposed commercial terms were unattractive for the gambling giants. A 2025 report from Spectrum Gaming Group had previously warned that Rhode Island could see “limited interest” from vendors, citing concerns over the state’s tax structure and overall market conditions.

Under current state law, online sports betting revenue is divided with 51% going to the state, 32% to the online operator, and 17% to Bally’s retail sportsbook at its Lincoln casino.

Lawmakers are now considering reforms that would significantly alter that structure. Proposed bills in both the House and Senate would increase the operators’ share to roughly 79% while gradually reducing the state’s portion after it reaches $18.6 million in annual revenue, based on fiscal year 2025 figures.

FanDuel has publicly supported the legislation, saying it would encourage competition and strengthen consumer choice. “These bills would give Rhode Islanders access to the best sports betting platforms in America,” said Cory Fox, FanDuel’s Senior Vice President of Public Policy.

The proposed House legislation was reviewed by the Committee on Finance on April 29, while the Senate proposal was heard by the Committee on Labor and Gaming on May 20.

Both measures were held for further study, a routine step during early legislative review. However, Ciccone, a Providence Democrat who chairs the legislature’s Joint Committee on Lottery, said he does not expect either bill to advance this year.

He described the discussions as still early and unresolved, noting there is “a lot up in the air” regarding the proposals.