Chavdar Vasilev is a gambling news writer with several years of experience in the iGaming industry. He started creating promotional content but soon found he loved reporting on the industry itself. Since then, he’s delivered...
Read Full BioSpectrum Gaming Group’s report, commissioned by the Rhode Island Lottery, recommends that the state award four to six sports betting operator licenses and lower taxes to attract more candidates.
While the state was among the first to legalize sports betting in 2019, it opted for a one-operator system, with Sportsbook Rhode Island serving as the sole platform.
Gaming and lottery giant International Game Technology (IGT) currently runs Sportsbook Rhode Island on a contract until 2026.
Rhode Island One-Operator Sports Betting System Under Pressure
The spectrum report indicates that all other New England states have multiple sports betting skins. However, to attract operators like DraftKings and FanDuel, Rhode Island must lower its taxes.
The Ocean State, New Hampshire, and New York have the highest tax rate in the US at 51%. Additionally, Sportsbook Rhode Island pays a 17% server hosting fee to Bally’s Corporation. The high tax could have contributed to IGT being the only bidder in 2018.
The Rhode Island Lottery is starting to consider the recommendations. According to the Rhode Island Current, Director Mark Fucolo has informed the legislative committee overseeing the state’s gambling sector that the lottery intends to issue a request for information (RFI) in early 2026.
Lottery spokesperson Paul Grimaldi told the news outlet that the RFI is intended to determine whether there is interest and from which companies.
Lawmakers Push for Market Expansion in 2026
Given that the IGT contract expires late next year, some lawmakers, such as House Speaker K. Joseph Shekarchi, are not interested in discussing it in 2025.
However, others, such as Senate Majority Leader Frank Ciccone and Rep. Matthew Dawson, are already working on the matter. Ciccone introduced SB 748 in the Senate, while Dawson introduced a companion bill in the House. The proposal calls for five sports betting platforms, which could launch on July 1, 2026.
If enacted, SB 748 would prohibit the Rhode Island Lottery Commission from renewing the IGT contract after July 1, 2026.
The legislation would also require the commission to open invitations to potential license candidates before IGT’s contract expires. Moreover, it must ensure all licensed operators meet regulatory qualifications.
One big provision missing from SB 748 is the 51% tax rate, which, as Spectrum points out, might deter potential suitors.
The bill was reviewed at a hearing of the Senate Committee on Labor and Gaming (which Ciccone chairs) on April 30. Meanwhile, the House Committee on Finance reviewed Dawson’s bill on May 1. Both proposals were held for further study, a standard procedure.
Could Online Casino Reforms Follow?
In addition to the high tax, operators like DraftKings and FanDuel might show little interest in a Rhode Island sports betting license because it won’t give them access to iGaming.
Like sports betting, Rhode Island operates on a monopoly system for iGaming. The state legalized online casinos in 2023 and awarded Bally’s Corp. the only license. Bally Casino launched in March 2024.
If changes eventually come to sports betting in Rhode Island, questions could arise regarding iGaming. Such a proposal could generate interest as Bally Casino has underperformed since its launch.
After a slow start, the online casino never caught on to match forecasts. For 2024, Bally Casino generated under $22 million in net revenue. For comparison, the initial estimates by Christiansen Capital Advisors, commissioned by the Rhode Island Department of Revenue, were $58.9 million, more than double the actual number.
