While extending its contract with IGT, Rhode Island has said it will grant one more sportsbook a gambling license this year to expand from its monopoly market.
IGT powers Rhode Island’s only licensed sportsbook, Sportsbook RI. The platform does not currently offer esports betting, meaning residents cannot legally wager on events.
That could be set to change as the state’s gambling regulator, the Rhode Island Lottery, said one more platform will be allowed to launch in November this year.
“The intention is to seek one new app vendor (in addition to SportsbookRI) to begin offering online sports betting after November 2026,” Lottery spokesperson Paul Grimaldi told the Rhode Island Current.
Slow Expansion Favored Over Open Market
A study commissioned by the Lottery last year recommended that the state add four to six new online sports betting platforms to stay competitive with neighboring states.
The report found that competitive markets with multiple operators tend to generate higher betting handle and revenue than lottery-operated, monopoly systems.
It did, however, caution against a free market, stating that granting licenses to more operators will increase the burden on the Lottery.
As a result, the state has decided to take an incremental approach and will first grant one new license before evaluating whether expansion is a success.
Grimaldi added, “There would be an evaluation period, of unspecified length at the moment, to decide how well the new app is working, being accepted by bettors, and whether it’s adding to the state’s online sports betting revenue.”
Other states have also been exploring expanding into online betting. Two bills in Nebraska have been revived for the new legislative session, while lawmakers in Mississippi and Wisconsin are hopeful they can get legislation passed this year to launch online sports betting.
IGT Extends Contract Until 2028
Rhode Island may choose to further expand its market in 2028 when its agreement with IGT will expire. The company announced that it had signed a two-year extension this week.
In a press release, Joe Bertolone, IGT SVP Sports Betting, said, “IGT is very pleased to continue our long-term relationship with the Rhode Island Lottery through 2028 and help generate important revenue for the State through its sports betting operations powered by PlaySports technology.”
“IGT PlaySports continues to invest in the Sportsbook Rhode Island app to ensure the Lottery is offering a premier betting product that makes a positive impact on the State’s commitments to good causes.”
Under the exclusive agreement with IGT, Rhode Island’s gambling market has stagnated. A report last year found that wagers declined by 3.2%, bucking the trend seen in other states, which have seen betting handle increase significantly.
The state imposes a 51% tax on revenue, the highest in the country, alongside New York and New Hampshire. A decline in wagers resulted in a decrease in tax revenue, with the state collecting $18.6 million last year, down from $19.2 million in 2023.
Several companies have expressed interest in applying for the new license in Rhode Island, including Bally’s, Fanatics, Kambi, DraftKings, BetMGM, OpenBet, and FanDuel. Operators have until February 19 to submit proposals.