Rhode Island Considers Ending Its Online Sports Betting Monopoly Ahead of IGT Contract Expiry
Rhode Island is actively evaluating whether to dismantle its long-standing online sports betting monopoly and invite competing operators to the market.
LISTEN TO THIS ARTICLE:This is part of a broader effort to capture growing demand for digital wagering products. The discussion has intensified as the exclusive contract held by International Game Technology (IGT) to run the state lottery’s Sportsbook RI app approaches its November 2026 expiry.
model: the state lottery contracts with a single provider to run its mobile sportsbook alongside brick-and-mortar casino wagering. That arrangement has put IGT at the center of online sports betting in the Ocean State.
Growing Operator Interest and Legislative Hurdles in Rhode Island
Earlier this year, the Rhode Island Department of Revenue Lottery Division issued a Request for Information to gauge market appetite for additional online operators. The process drew interest from eight significant suppliers and sportsbook brands, including Bally’s (which operates the state’s two commercial casinos), IGT, BetMGM, DraftKings, Fanatics, FanDuel, Kambi and OpenBet. The RFI results suggested there is commercial willingness to enter Rhode Island, despite the state’s unusually high online tax rate.
Lawmakers have introduced bills aimed at ending the monopoly in recent legislative sessions. One measure gained traction in the state Senate but was not taken up by the House before the session adjourned; a similar proposal failed to progress the year prior. Supporters argue that opening the market to multiple operators would drive higher overall betting volume and increase tax receipts. Opponents and cautious stakeholders point to contractual obligations, procurement logistics and potential disruption to the lottery’s revenue model.
Rhode Island currently taxes online sports betting at about 51%, a rate that analysts say is among the highest in the U.S. In 2024, the state reported roughly $14 million in tax revenue from online wagering. Industry executives and tax specialists warn that very high rates can discourage operator investment in marketing and customer promotions, and could push bettors to less-regulated alternatives unless the legal market offers competitive odds and user experience.
Proponents of liberalization emphasize greater consumer choice, more aggressive customer acquisition by competing brands, and the resilience that comes from multiple technical platforms – reducing the risk that a single outage will shut down statewide mobile betting. Critics counter that transitioning from a single-provider model raises procurement complexity, may require legislative or regulatory changes to the state lottery’s mandate, and could affect existing vendor relationships.
States that moved to open markets after PASPA, such as New Jersey and Pennsylvania, have shown how competition can expand product variety and drive gross gaming revenue, but success often hinges on tax policy, marketing freedoms and licensing frameworks. Rhode Island’s 51% tax figure sets it apart from peers and will be a focal point in negotiations with prospective operators and in any legislative debate.
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request for proposals, or new legislation to alter the lottery’s contracting powers. Any change would also trigger regulatory work by state authorities to set licensing terms, integrity requirements and responsible-gambling safeguards.
The decision will shape Rhode Island’s retail and online sports betting landscape for years, influencing tax receipts, consumer choice and the strategies of major operators that have already signaled interest. For bettors, the key questions will be whether competition delivers better pricing, more promotions and a more reliable mobile experience. For the state, lawmakers must weigh potential revenue gains against the fiscal and contractual realities of moving away from a monopoly model.
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