Despite interest from several other sports betting companies, Rhode Island will continue with a single sports betting operator. The Rhode Island Lottery signed a two-year contract this week with International Game Technology (IGT) to continue as the state’s only sports wagering provider.
The deal runs for nearly another three years through November 2028. Additionally, the state continues a partnership with IGT it established several years ago.
“IGT is very pleased to continue our long-term relationship with the Rhode Island Lottery through 2028 and help generate important revenue for the state through its sports betting operations powered by PlaySports technology,” IGT Senior Vice President of Sports Betting Joe Bertolone said.
“IGT PlaySports continues to invest in the Sportsbook Rhode Island app to ensure the lottery is offering a premier betting product that makes a positive impact on the state’s commitments to good causes.”
Efforts To Open Up Market Failed
The extension comes as some lawmakers in the state hoped to open up the market to more competition. Senate Bill 748 would have ended the agreement with IGT when the contract expired this year. Furthermore, the Lottery could accept bids for up to five different operators.
Last fall, after IGT experienced an outage during the first week of the NFL season. Consequently, eight operators expressed interest in entering the market.
“The bill would allow Rhode Island residents to play on their favorite apps, while increasing tax revenue,” DraftKings noted in committee testimony. “A marketplace with multiple choices for players leads to a better player experience. Operators are forced to innovate while competing for business.”
The legislation fizzled despite significant early support. As a result, IGT continues its sports betting monopoly in the Ocean State. Lottery officials and IGT argued the high tax rate results in more revenue with a single operator. Rhode Island taxes sports betting operators at a 51% clip.
“The data strongly suggests that maintaining the current model is the most prudent course of action to safeguard and grow state revenues,” Bertolone said in Senate testimony.
Additional Operator Still Possible
Despite the agreement, the Rhode Island Current reports that the Lottery is still considering a second operator. Companies have until Feb. 19 to submit bids.
“The intention is to seek one new app vendor to begin offering online sports betting after November 2026,” Lottery spokesman Paul Grimaldi said. “There would be an evaluation period, of unspecified length at the moment, to decide how well the new app is working, being accepted by bettors, and whether it’s adding to the state’s online sports betting revenue.”
The country has seen 39 states along with Washington D.C. and Puerto Rico legalize sports betting since the Supreme Court overturned a virtual ban on betting outside Nevada in 2018.
