Rhode Island Considers Ending IGT’s Exclusive Hold on Online Sports Betting

Rhode Island regulators are weighing whether to dismantle International Game Technology’s monopoly over online sports betting, as several major operators signal they are ready to enter the market. The Rhode Island Department of Revenue’s Lottery Division, which oversees the state’s gambling operations, has been evaluating the possibility of opening the digital sportsbook market to competition following years of exclusive control by IGT through its Sportsbook RI platform.

Earlier this year, the Lottery Division issued a Request for Information to gauge industry interest should the state decide to expand access. “[The] Lottery is moving ahead with its examination of whether adding more apps is feasible,” lottery spokesperson Paul Grimaldi said in an email to the Rhode Island Current. By the August 22 deadline, the state had received responses from eight operators seeking entry: Bally’s, BetMGM, DraftKings, Fanatics, FanDuel, IGT, Kambi, and OpenBet. IGT’s current contract remains in force until November 2026, but the responses suggest growing enthusiasm for a more competitive environment.

Bally’s, headquartered in Providence, already plays a significant role in Rhode Island’s gambling landscape, operating two casinos that also feature in-person sportsbooks. The company further expanded its presence in 2024 with the launch of its Bally Bet online platform, following Rhode Island’s move the previous year to become the seventh U.S. state to legalize online casino gaming.

The debate over ending IGT’s monopoly has intensified as state leaders question whether exclusivity still serves consumers or the state’s finances. In the last fiscal year, Rhode Island collected $14 million in taxes from IGT’s sports betting operations, which are subject to an effective 51% tax rate. Despite those revenues, single-operator models have drawn criticism nationwide for limited competition and poor customer experience. That scrutiny deepened on September 7, when IGT’s servers crashed for 75 minutes during the first NFL weekend, temporarily halting betting across Rhode Island.

Earlier this year, lawmakers attempted to legislate change. Senator Frank Ciccone sponsored a bill to end IGT’s exclusivity, arguing that an open market would better serve both players and the public purse. The Senate approved the measure in a decisive 30-3 vote, but the House failed to consider it before adjournment in June. “With legalised sports betting flourishing across the country, there is ample evidence on how this new industry works best for consumers and the state,” Ciccone said during the Senate debate. “And what we are seeing is that having only one company exclusively operate is not in the best interests of consumers or from a revenue-generating standpoint.” Lawmakers had introduced a similar proposal in 2024, but it likewise stalled before reaching the governor’s desk.

To support its analysis, the Lottery Division earlier this year released findings from a Spectrum Gaming Group study recommending that Rhode Island expand its market to include at least three, and potentially as many as five, new operators. The report suggested that broader participation would enhance both competitiveness and tax yield without undermining regulatory oversight.

Rhode Island’s situation mirrors that of several other U.S. states still operating under monopoly sportsbook systems. In Florida, the Seminole Tribe’s Hard Rock Sportsbook remains the sole legal operator. Oregon and New Hampshire both maintain exclusive partnerships with DraftKings, while Delaware relies on BetRivers as its only provider. Delaware lawmakers, like their Rhode Island counterparts, have already begun examining the potential benefits of market expansion. Meanwhile, in Montana, Intralot continues to run the state’s sports betting operations under a similar lottery-managed monopoly model.

For now, IGT’s contract stands, but the combination of legislative momentum, industry interest, and public debate signals that Rhode Island’s tightly held online betting market could soon be headed for a major shakeup.

By fLEXI tEAM