The Rhode Island Department of Revenue Lottery Division has taken a significant step by issuing a Request for Information (RFI) to assess the interest of other sportsbook operators in entering the state’s online sports betting market. This move indicates a potential end to the monopoly currently held by International Game Technology (IGT), which operates online sports betting through the state’s Sportsbook RI app under an exclusive contract that runs until November 2026.
Lottery spokesperson Paul Grimaldi confirmed, via an email to the Rhode Island Current, that the lottery is actively examining the feasibility of introducing more sports betting apps to the market. The RFI drew responses from eight major sportsbook operators by the deadline of August 22. The list includes Bally’s, BetMGM, DraftKings, Fanatics, FanDuel, IGT, Kambi, and OpenBet.
Of particular interest is Bally’s, a Providence-based company that operates two casinos in the state offering in-person sportsbook services. Bally’s has been a prominent player in the state’s gambling scene, especially since Rhode Island became the seventh state to legalize online casino gambling in 2023. The company launched its Bally Bet platform in 2024, positioning itself as a key contender if the market opens.
In the previous fiscal year, Rhode Island collected $14 million in taxes from IGT’s sports betting revenues, benefiting from the effective 51% tax rate. However, monopolies in sports betting often face criticism from bettors. This was highlighted on September 7, during the opening weekend of the NFL season, when IGT’s servers experienced a 75-minute outage, frustrating Rhode Island’s betting enthusiasts.
Earlier in the year, state lawmakers discussed the possibility of market expansion. Senator Frank Ciccone introduced a bill aimed at ending the IGT monopoly, which successfully passed the Senate with a 30-3 vote but stalled in the House. Ciccone argued that the flourishing of legalized sports betting across the country offers clear lessons on optimal practices for both consumer benefit and state revenue. In his view, relying solely on one operator does not serve these interests effectively.
The call to expand is further supported by a study conducted by Spectrum Gaming Group, commissioned by the lottery earlier this year. The study recommends introducing at least three to five new operators in Rhode Island to enhance the market’s competitiveness and consumer offerings.
Rhode Island’s situation is not unique, as several states maintain sports betting monopolies. For instance, in Florida, the Seminole-owned Hard Rock Sportsbook is the exclusive operator, while DraftKings has similar exclusivity in Oregon and New Hampshire. Delaware relies solely on BetRivers, and lawmakers there are also contemplating market expansion. Montana has its exclusivity agreement with Intralot through the state lottery.
Critics of monopolies argue that they limit consumer choice and innovation, while proponents might note the streamlined regulatory oversight and potential for consistent state revenue that a single operator can provide. The debate over monopoly versus open market is ongoing as states grapple with optimizing this rapidly evolving industry.
As Rhode Island continues to evaluate its options, the interest from major sportsbook operators suggests a competitive landscape willing to vie for a slice of the market. The ultimate decision will likely hinge on balancing consumer interests with revenue considerations, aiming to create a robust and dynamic sports betting market in the state.
Topics: Florida · Partnerships · Sports Betting · Gambling Taxes · Financial Results · Online Casino
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