Sportsbooks Warn Rhode Island: Duopoly Leaves Money on Table

Rhode Island currently limits online sports betting to a single operator. Although that cap will expand to two when Bally Bet launches sometime later this month, industry leaders like DraftKings and FanDuel argue the state will still be leaving tens of millions of tax dollars on the table. Goat Island Lighthouse in Newport, Rhode Island. Leading sportsbooks are encouraging state officials in Rhode Island to reduce their sports betting tax and welcome in new online sportsbook operators. (Image: Shutterstock) The Rhode Island Lottery’s online sports betting monopoly through its partnership with International Game Technology (IGT) ends on Nov. 25. After that date, Bally’s, the state’s exclusive casino operator that runs slot-like video lottery terminals (VLTs) at Bally’s Lincoln and Bally’s Tiverton, will offer bettors aged 18 and older access to the Bally Bet Sportsbook app. While Bally Bet is expected to provide competition against the lottery’s Rhode Island Sportsbook, the Sports Betting Alliance (SBA) says lawmakers should welcome in additional operators and lower the tax on gross revenue to reach the market’s full potential. Limited Operators, High Tax The Rhode Island General Assembly will convene on Jan. 5 for its 2027 session. Among the most liberal state legislatures in the nation, lawmakers in Providence legalized sports betting in 2018 but chose a conservative lottery-controlled model. IGT, the lottery’s longtime vendor, was handed exclusivity to in-person and online sports betting. After customers complained about poor odds and few incentives, as compared with neighboring states like Massachusetts, which has seven online sportsbooks, lawmakers commissioned a study in 2025 to determine if expansion was warranted. Pennsylvania-based consultant Spectrum Gaming concluded it was, recommending that Rhode Island grant between four and six additional licenses. The state opted to start with only one. The bidding period, however, fielded only two applications, with BetRivers being the other candidate joining Bally Bet. Sportsbooks with better name recognition said Rhode Island’s 51% tax on sportsbook revenue kept the state unattractive to them. Spectrum additionally advised lawmakers that a gross sports betting tax of 20%-25% would allow sportsbooks to offer better odds and promotions, which would grow their business and the state’s subsequent tax benefit. The SBA is encouraging Rhode Island to take another look at its sports betting model. The trade group supported by DraftKings, FanDuel, BetMGM, Fanatics, and bet365 says Rhode Islanders continue to make millions of online bets each year in Massachusetts, Connecticut, and New York, where more attractive online sportsbooks operate. Cory Fox, senior vice president of public policy and sustainability at FanDuel, told NBC 10 in Rhode Island that competition is good for consumers and the market. When you have competition amongst really strong products, we have to compete with each other, we compete on promotions, and it becomes a much more competitive market, which ultimately benefits the customer,” Fox said. A competitive market, Fox added, brings in customers from the illegal market and keeps bettors from traveling to neighboring markets to bet. Small But Prosperous Rhode Island is the smallest state in the country by land area and 44th in population, with about 1.1 million people. While it’s small, Rhode Island is affluent, with a real median household income of $96,880, far above the national average of $87,460. The post Sportsbooks Warn Rhode Island: Duopoly Leaves Money on Table appeared first on Casino.org.