Rhode Island lawmakers are considering a major overhaul of the state’s sports betting framework that could end the current single-operator model and usher in competition from national gambling companies.
A Senate bill passed on June 4 would prevent the Rhode Island Lottery from renewing its exclusive contract with International Game Technology (IGT), instead requiring it to award contracts to between three and five sports betting operators through a competitive bidding process beginning in 2026.
The legislation, if also passed by the House, would dismantle the monopoly held by the Sportsbook Rhode Island app, developed and operated by IGT, which has been the state’s sole legal online sports wagering platform since its launch. While popular apps like DraftKings and FanDuel dominate neighboring states, they remain off-limits within Rhode Island’s borders.
Proponents of the bill argue that introducing competition would improve user experience and increase tax revenue. “A marketplace with multiple choices for players leads to a better player experience—operators are forced to innovate, while competing for business,” DraftKings wrote in its testimony.
The company noted that Rhode Island ranks among the lowest in the nation in per-capita online sports betting revenue, at just $38 per adult, roughly half of what Massachusetts generates.
The bill, SB 748, passed the Senate by a wide margin of 30 to 2. However, the proposal has drawn strong opposition from IGT and some state officials. In written testimony, IGT Senior Vice President Joe Bertolone defended the company’s track record: “The Rhode Island model outperforms many of its regional peers despite the presence of high-profile competitors in neighboring states.”
He argued that IGT’s centralized operation, taxed at 51% of revenue plus a 17% host fee to Bally’s, delivers strong fiscal returns and that introducing competition would force the state to lower tax rates, ultimately reducing revenue for public services.
IGT warned that Rhode Island may see higher wagering volumes under a competitive model, but more of that money could end up with operators rather than in state coffers. Rhode Island currently collects $17.44 in revenue per person, compared to $9.78 in Connecticut, which operates a multi-operator model.
The Rhode Island Lottery has expressed similar reservations. Lottery Director Mark Furcolo wrote that barring the agency from extending IGT’s deal may violate constitutional contract protections. He also raised concerns over administrative capacity, warning that the Lottery is not equipped to oversee five separate operators.
The Senate amended the bill after Lottery concerns were raised. The original version mandated “at least five” vendors; it now allows for “not less than three but not more than five.” It remains unclear whether this adjustment satisfies the Lottery’s logistical objections. The House version of the bill, introduced by Rep. Matthew Dawson (D-East Providence), remains in committee.
Separately, a Lottery-commissioned report from Spectrum Gaming Group recommended that Rhode Island issue a request for proposals before the year ends to explore alternative operating models.
If the state moves forward with a multi-operator system, Spectrum advises lowering the effective tax rate to no more than 30%, reducing Bally’s host fee, and possibly consolidating online casino and sports betting operations into a single app to improve efficiency.
In another gambling-related development, Rep. Scott Slater (D-Providence) introduced House Bill 6388, which would allow Bally’s to live stream its casino games to other states. A similar bill in the Senate was previously postponed. Bally’s stated that the legislation could expand job opportunities and increase national visibility for Rhode Island gaming.
Original article: https://www.yogonet.com/international/news/2025/06/05/107145-rhode-island-senate-explores-ending-exclusive-sports-betting-deal-eyes-competitive-multiapp-market
