- Rhode Island’s sports activities betting may develop, although many obstacles stay
- The Rhode Island Lottery maintains management over all types of playing within the state, together with sports activities betting
The Rhode Island Lottery fielded eight submissions for its Request for Info (RFI) solicitation for suggestions from certified sports activities wagering service suppliers that is perhaps concerned about investing within the state ought to the market develop.
Fort Hill Lighthouse in Newport, RI. The Rhode Island Lottery lately fielded opinions from sports activities betting corporations in regards to the state’s sports activities playing business. (Picture: Shutterstock)
Rhode Islanders are at present restricted to just one sports activities betting alternative — Sportsbook Rhode Island. IGT, the Rhode Island Lottery’s accomplice that providers its lottery video games and video lottery terminals (VLTs) on the state’s two casinos, powers the web and in-person sportsbook.
IGT’s operational contract for the lottery’s sports activities betting enterprise expires Nov. 25, 2026. Earlier this yr, the Lottery employed Spectrum Gaming to check how increasing the sports activities betting market may affect income and the state’s profit.
Spectrum really useful that an RFI be carried out earlier than the top of 2025 “to find out what alternate options there are to the present B2B supplier, in addition to any B2C suppliers which may be within the present single-provider mannequin.”
Growth Not So Simple
The Rhode Island Structure requires that every one types of playing undergo the state-run Lottery. As such, Rhode Island’s 2018 sports activities betting legislation empowered the lottery with the operational and regulatory oversight and management of all facets of sports activities betting.
IGT’s cope with the state to be the unique sportsbook supplier requires that 51% of the gross income from sports activities betting, or the quantity the e-book wins from bettors, goes to the state. Bally’s, which operates the state’s two VLT casinos — Bally’s Twin River Lincoln and Bally’s Tiverton — will get 17% of the sports activities betting cash. IGT retains the remaining 32%.
The native governments of Tiverton and Lincoln moreover obtain $200K yearly for internet hosting the state’s solely two bodily sportsbooks contained in the Bally’s properties.
Together with IGT and Bally’s, the entities that responded to the lottery’s RFI included DraftKings, FanDuel, Fanatics, BetMGM, Kambi, and OpenBet. Their enter hasn’t been made public.
Spectrum, nonetheless, factors out the truth that quite a few considerations may block curiosity amongst these sportsbook pursuits. The gaming consultancy says if Rhode Island needs to open its sports activities betting market, legislative reforms are seemingly wanted.
Spectrum would suggest Rhode Island pursue a method to cut back its efficient tax price to roughly 20% to 35%, cut back the host payment fee to Bally’s over a multi-year interval to cut back friction with the incumbent, and enact an annual flat-fee license renewal for market contributors,” Spectrum really useful.
One other hurdle is that the Rhode Island Structure requires all types of Class III on line casino playing — which sports activities betting is — to solely function inside the confines of a land-based on line casino. On-line sports activities betting was accepted as long as “all servers initiating and receiving on-line sports activities wagers be bodily positioned inside” the Bally’s casinos.
One enticing part to potential incomers is that Rhode Island permits anybody aged 18 and as much as wager on sports activities. The minimal age in neighboring Massachusetts and Connecticut is 21.
Smallest State
The 51% tax Rhode Island levies on gross sports activities betting income matches New York and New Hampshire for the very best within the nation. Whereas main sportsbooks are prepared to share greater than half of their win with New York as a result of it’s residence to about 20 million folks, Rhode Island has fewer than 1.2 million residents.
New York sportsbooks took $24 billion in bets in the course of the 2025 fiscal yr and generated gross income of greater than $2.1 billion. Rhode Island’s lone sportsbook accepted $473 million in wagers and saved lower than $37.8 million.
