A group of Rhode Island state Senators have introduced a bill to end the state’s monopoly sports betting model and move toward a multi-license system with at least five mobile sportsbooks. The present proposal doesn’t address Rhode Island online casino gaming, which is also a monopoly held by Bally Casino. However, the state’s iGaming model built off the launch of its sports betting market, so a successful paradigm shift for sportsbooks could eventually precipitate a push for change in the online casino market.
Rhode Island was one of the first states to legalize online sports betting in 2019. However, unlike most, it chose a monopoly system, with Sportsbook Rhode Island as the sole operator. The platform is powered by International Game Technology (IGT), which is also the technology partner for the state’s lottery. IGT’s sports technology contract runs until July 1, 2026.
The bill proposes a competitive market
SB 748, with primary sponsor Sen. Frank Ciccone and co-sponsors Sen. John Burke, Sen. Todd Patalano, and Sen. David Tikoian, aims to change the current model and introduce competition. Provisions of the bill include:
- Prohibit the Rhode Island Lottery Commission from renewing existing sports betting vendor contracts after July 1, 2026.
- Require the commission to issue open invitations to potential sportsbook operators before IGT’s current contract expires.
- Mandate a minimum of five sportsbook licenses.
- Ensure all licensed operators meet regulatory qualifications.
While the proposal seeks to expand the market, it’s not guaranteed that major platforms like FanDuel and DraftKings will be interested. Also, there might not be five qualified applicants. Reasons include the relatively small market and Rhode Island’s 51% sports betting tax, which SB 748 does not address.
Moreover, some prominent operators might hesitate to bid on a sports-only license without iGaming. That’s judging by neighboring Connecticut, where the lottery runs one of three sportsbooks. It’s the only sports-only platform with a much smaller market share than DraftKings and Mohegan Sun, which also have online casinos. The underperformance led Rush Street Interactive (RSI), the lottery’s technology partner, to pull out of their 10-year contract in 2024. Fanatics Sportsbook eventually replaced RSI but hasn’t performed much better.
The bill’s first stop in the legislative process is the Senate Labor and Gaming Commission.
A similar attempt failed in Delaware last year
Rhode Island is not the only monopoly gaming system in the US. Delaware, another early adopter of online gambling, has also chosen a one-operator market. Last year, Delaware made a similar attempt to introduce a multi-license system. Lawmakers proposed a market with at least six operators, based on recommendations from a legislative study group that examined neighboring states’ markets.
However, the effort failed to gain traction, primarily due to opposition from the Delaware Lottery and RSI, the state’s technology partner. Lottery officials argued that the monopoly model is best suited for the market size, which is similar to Rhode Island. Another key factor was Delaware’s recent switch from Evoke (formerly 888 Holdings) to RSI as its platform provider for sports betting and iGaming. The move resulted in a significant revenue increase and strengthened the case for the monopoly model.
If the bill passes, there could be calls for iGaming changes
If SB 748 were to pass with favorable results, it could spark a conversation about reforming Rhode Island’s iGaming system, which also operates under a monopoly model. Currently, Bally Casino is the sole online casino in the state, having launched in March 2024.
However, the platform got off to a slow start and never caught on to match initial forecasts. In 2024, Bally Casino generated less than $22 million in net revenue. That fell short of the $58.9 million forecast by Christiansen Capital Advisors, which the Rhode Island Department of Revenue commissioned. Even the more conservative estimates of a little under $50 million by Bonus Managing Editor Alex Weldon were too optimistic.
Rhode Island’s small market and lack of competition may contribute to the casino’s sluggish performance. However, while there are positive examples of switching to a multi-license system, like Ontario, Canada, and some European countries, Bally Casino is still in its early stages. And the example from Delaware shows that a switch could take years.
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