In a decisive move to curtail illegal gambling activities, Rhode Island Attorney General Peter Neronha announced an investigation into offshore sportsbooks and casinos, following a formal request by the Department of Revenue. This development highlights the state’s commitment to cleaning up the industry as it considers opening its sports betting market to more operators.
This past summer, the Rhode Island Lottery, under the Department of Revenue’s oversight, issued six cease-and-desist letters to prominent offshore operators, including BetUS, BetOnline, Bovada, MyBookie, WildCasino, and YouWager. These actions underscore a broader initiative to protect the burgeoning legal sports betting ecosystem within the state.
Currently, International Game Technology (IGT) holds the exclusive contract to operate the legal sports betting platform in Rhode Island through the Sportsbook RI app. However, the state’s monopoly on sports betting may soon end. Earlier this year, the lottery initiated a Request for Information process to explore interest from other potential operators. The response was significant, with eight major players, including Bally’s, BetMGM, DraftKings, Fanatics, FanDuel, IGT, Kambi, and OpenBet, expressing interest by the August 22 deadline.
Bally’s, a major player headquartered in Providence and operator of two casinos in the state, expressed eagerness to enter the sports betting space. They launched their online casino in 2024 and were among those responding to the call for new participants.
Despite the Senate passing a bill by a vote of 30-3 to dissolve IGT’s monopoly, the measure failed in the House. The bill was influenced by a study from the Spectrum Gaming Group, which advocated for at least three new operators to enhance market competition and consumer choice. Senator Frank Ciccone, the bill’s sponsor, remarked that the current single-operator system is suboptimal for both consumers and revenue generation. He emphasized that the national success of legalized sports betting can guide Rhode Island in optimizing this sector.
The aggressive stance against offshore sportsbooks is not unique to Rhode Island. Across the United States, regulators have deployed extensive measures against illegal gambling operators. For instance, the Michigan Gaming Control Board has dispatched over 100 cease-and-desist letters to such entities. The board’s Executive Director, Henry Williams, emphasized their commitment to a lawful and fair gaming environment, ensuring that Michigan residents are shielded from unreliable gambling experiences and predatory practices.
This crackdown is part of a broader national trend. States like California have enacted legislation against dual-currency sweepstakes operators, while Louisiana has faced internal debates. Governor Jeff Landry vetoed a bill intended to ban these operators, asserting that existing regulatory frameworks suffice to enforce the state’s gambling rules. Nevertheless, the Louisiana Gaming Control Board proceeded to send 40 cease-and-desist orders to illegal operators.
Controversies also arise with prediction markets, which have been targeted by multiple states for offering sports event contracts. These legal challenges, involving both state and federal lawsuits, question whether these markets, regulated by the Commodity Futures Trading Commission, are merely another form of illegal sports betting.
A counterpoint to the enforcement action against offshore operators considers the consumer perspective on choice and access. Some argue that offshore sportsbooks often provide better odds and more varied betting options compared to their state-regulated counterparts. This perspective highlights the need for regulated markets to adapt and offer competitive options to retain consumer interest and ensure the continued growth of legal gambling frameworks.
As Rhode Island evaluates the future landscape of its sports betting market, these enforcement actions serve as a critical step in safeguarding the integrity of its gaming industry. With potential new entrants on the horizon, the state’s approach will likely shape both local and national discussions on balancing regulation with market expansion. As the legal situation evolves, stakeholders remain watchful of how these dynamics will impact both the industry and consumers in the coming years.
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