Rhode Island Mulls Sports Betting Expansion Amid High Tax Concerns
Providence, RI – A recent report by Spectrum Gaming Group, commissioned by the Rhode Island Lottery, has prompted discussions about expanding the state’s sports betting landscape. The report recommends Rhode Island award four to six operator licenses and lower its tax rates to attract more competitive bidders.
Since the legalization of sports betting in 2019, Rhode Island has operated under a one-operator system, with International Game Technology (IGT) managing Sportsbook Rhode Island until 2026. This solitary model puts the state at a disadvantage in comparison to other New England states, which feature multiple betting platforms. Rhode Island’s tax rate, currently at 51%, is the highest in the nation, with additional fees paid to Bally’s Corporation further diminishing attractiveness for potential entrants like DraftKings and FanDuel.
Director Mark Fucolo of the Rhode Island Lottery has indicated an intention to issue a request for information (RFI) in early 2026 to gauge industry interest, although the timeline raises concerns among lawmakers. Some, like House Speaker K. Joseph Shekarchi, prefer to wait until after IGT’s contract expires, while others, including Senate Majority Leader Frank Ciccone, are eager to act. Ciccone has introduced legislation (SB 748) proposing five platforms for sports betting by July 1, 2026, while ensuring regulatory standards for potential operators.
However, the bill does not address the high 51% tax rate, which Spectrum warns may continue to deter interest. Additionally, Rhode Island’s monopoly system for iGaming, which recently allowed Bally’s Corp. exclusive rights, complicates the landscape for prospective sports betting licensees, as operators may not gain access to the lucrative online casino market.
As these discussions unfold, questions remain about the future of both sports betting and iGaming in Rhode Island, particularly given the underwhelming performance of Bally Casino since its launch.
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