Bally’s Corporation has reportedly been chosen as the second online sportsbook operator in Rhode Island, marking a significant shift in the state's betting landscape since it adopted a single-operator model in 2019.
Local news outlets indicate that the Rhode Island Lottery has awarded Bally’s the opportunity to run the state’s second online sportsbook, surpassing Rush Street Interactive’s BetRivers in a competitive bidding process that saw only two contenders.
While no formal agreements have been finalized, if the negotiations are successful, Bally’s could potentially launch its online platform by November, coinciding with the expiration of International Game Technology’s (IGT) exclusive contract for the state’s only sportsbook, Sportsbook Rhode Island.
Earlier this year, the Lottery extended IGT’s contract until 2028 but opened the door for a second operator. The application process for this new license was initiated in late 2025, with submissions due in February.
Michael O’Rourke, Deputy Director of the Lottery, mentioned to NBC 10 that the review process was comprehensive, even though only one other company submitted a competing proposal. “We had hoped for more responses, but that didn’t materialize,” O’Rourke stated.
High Tax Rate Likely Limited Operator Interest
The steep tax structure in Rhode Island may have deterred many potential operators from applying for the second license. Currently, the state retains 51% of the revenue generated from online sports betting, which is among the highest tax rates in the United States. The remaining 49% is shared between the online operator and the retail casino partner.
Under the existing agreement with IGT, the company receives 32%, while Bally’s, through its ownership of two retail sportsbooks in Lincoln and Tiverton, takes home 17%. With the new online license, Bally’s will effectively keep the entire 49% as it will act as both the platform operator and the retail casino partner.
According to Rhode Island Lottery data, online sports betting brought in about $26.7 million in revenue from July 2025 to March 2026, with the state collecting around $13.6 million. Critics of the single-operator model argue that allowing more operators could boost betting activity and, in turn, increase tax revenues.
Legislative Expansion Efforts Continue to Stall
Rhode Island was one of the pioneering states to legalize sports betting back in 2018, yet it opted for a single-operator system managed by the Lottery. Efforts to alter this arrangement and invite additional operators have been ongoing.
In 2025, Senate Majority Leader Frank Ciccone successfully pushed a bill through the Senate aimed at expanding the market to accommodate three to five online sportsbooks. Unfortunately, this proposal did not advance to a committee hearing in the House.
This expansion initiative followed a study by Spectrum Gaming Group, commissioned by lawmakers, which suggested that opening the market to more operators and reducing the 51% tax rate could enhance competitiveness.
Despite Ciccone introducing another expansion bill during the 2026 legislative session, it has yet to gain momentum.
Bally’s Continues Broader Expansion Push
The award of the Rhode Island sports betting license aligns with Bally’s broader strategy to expand its footprint across gaming, sports betting, and international markets. The company is currently engaged in several significant retail casino projects, including the Bally’s Chicago Casino, which has been postponed until 2027.
Bally’s has also secured one of three casino licenses for the New York City area, allowing it to develop a casino-resort in the Bronx. Additionally, plans for a new property in Las Vegas, adjacent to the Oakland Athletics' new ballpark, have been unveiled. The company is also exploring international expansion opportunities, including the acquisition of Australia’s Star Entertainment Group.