Rhode Island Sports Betting Could Expand, but Legal Hurdles Complicate Process
Posted on: October 10, 2025, 05:59h.
Last updated on: October 9, 2025, 02:21h.
- Rhode Island’s sports betting could expand, though many barriers remain
- The Rhode Island Lottery maintains control over all forms of gambling in the state, including sports betting
The Rhode Island Lottery fielded eight submissions for its Request for Information (RFI) solicitation for feedback from qualified sports wagering service providers that might be interested in investing in the state should the market expand.
Rhode Islanders are currently limited to only one sports betting choice — Sportsbook Rhode Island. IGT, the Rhode Island Lottery’s partner that services its lottery games and video lottery terminals (VLTs) at the state’s two casinos, powers the online and in-person sportsbook.
IGT’s operational contract for the lottery’s sports betting business expires Nov. 25, 2026. Earlier this year, the Lottery hired Spectrum Gaming to study how expanding the sports betting market might impact revenue and the state’s benefit.
Spectrum recommended that an RFI be conducted before the end of 2025 “to determine what alternatives there are to the current B2B provider, as well as any B2C providers that may be interested in the current single-provider model.”
Expansion Not So Easy
The Rhode Island Constitution requires that all forms of gambling go through the state-run Lottery. As such, Rhode Island’s 2018 sports betting law empowered the lottery with the operational and regulatory oversight and control of all aspects of sports betting.
IGT’s deal with the state to be the exclusive sportsbook provider requires that 51% of the gross revenue from sports betting, or the amount the 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 — gets 17% of the sports betting money. IGT retains the remaining 32%.
The local governments of Tiverton and Lincoln additionally receive $200K annually for hosting the state’s only two physical sportsbooks inside the Bally’s properties.
Along with IGT and Bally’s, the entities that responded to the lottery’s RFI included DraftKings, FanDuel, Fanatics, BetMGM, Kambi, and OpenBet. Their input hasn’t been made public.
Spectrum, however, points out the fact that numerous concerns could block interest among those sportsbook interests. The gaming consultancy says if Rhode Island wishes to open its sports betting market, legislative reforms are likely needed.
Spectrum would recommend Rhode Island pursue a strategy to reduce its effective tax rate to approximately 20% to 35%, reduce the host fee payment to Bally’s over a multi-year period to reduce friction with the incumbent, and enact an annual flat-fee license renewal for market participants,” Spectrum recommended.
Another hurdle is that the Rhode Island Constitution requires all forms of Class III casino gambling — which sports betting is — to only operate within the confines of a land-based casino. Online sports betting was approved so long as “all servers initiating and receiving online sports wagers be physically located within” the Bally’s casinos.
One attractive component to possible incomers is that Rhode Island allows anyone aged 18 and up to bet on sports. The minimum age in neighboring Massachusetts and Connecticut is 21.
Smallest State
The 51% tax Rhode Island levies on gross sports betting revenue matches New York and New Hampshire for the highest in the nation. While major sportsbooks are willing to share more than half of their win with New York because it’s home to about 20 million people, Rhode Island has fewer than 1.2 million residents.
New York sportsbooks took $24 billion in bets during the 2025 fiscal year and generated gross revenue of more than $2.1 billion. Rhode Island’s lone sportsbook accepted $473 million in wagers and kept less than $37.8 million.
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