Bally’s Selected for Rhode Island’s Second Online Sportsbook License

According to local reports, the Rhode Island Lottery has selected Bally’s Corporation to operate the state’s second online sportsbook, with the company beating Rush Street Interactive’s BetRivers in a bidding process that drew only two applicants.

While no contracts have been signed, if the deal proceeds, Bally’s could launch its platform in November, when International Game Technology’s exclusive deal to operate the state’s sole sportsbook, Sportsbook Rhode Island, expires.

In January, the Lottery extended IGT’s contract until 2028, but opened the door for a second license. It opened the application process for a second vendor in late 2025, with submissions due in February.

Lottery Deputy Director Michael O’Rourke told NBC 10 there had been “a thorough review process,” although only one other company submitted a competing application.

There was a hope we’d get more companies to reply, but they didn’t,” O’Rourke said.

High Tax Rate Likely Limited Operator Interest

Rhode Island’s aggressive tax structure likely contributed to the limited interest in the second license.

Under the current framework, the state keeps 51% of online sports betting revenue, one of the highest effective tax structures in the U.S. The online operator and the retail casino partner split the remaining 49%.

Under the existing IGT arrangement, IGT receives 32%. Meanwhile, Bally’s receives 17% through its ownership of Rhode Island’s two retail sportsbooks in Lincoln and Tiverton. The Rhode Island-headquartered company also operates the state’s sole online casino.

Now, Bally’s will effectively retain the remaining 49% under its new online license. That’s because it serves as both the platform operator and retail casino partner.

Rhode Island Lottery figures show that online sports betting generated approximately $26.7 million in revenue between July 2025 and March 2026. The state collected roughly $13.6 million.

Critics of the single-operator system have argued that opening the market could increase betting volume, thereby generating more tax revenue.

Legislative Expansion Efforts Continue to Stall

Rhode Island was among the first states to legalize sports betting in 2018. However, it chose a single-operator structure controlled by the Lottery.

There have been efforts to change the status quo and open the market to additional operators.

In 2025, Senate Majority Leader Frank Ciccone successfully pushed legislation through the Senate. The proposal would have expanded the market to between three and five online sportsbooks. However, the proposal never received a committee hearing in the House.

The expansion effort followed a Spectrum Gaming Group study commissioned by lawmakers, which recommended opening the market to additional operators. The study also recommended lowering the 51% tax rate to improve competitiveness.

Although Ciccone introduced another sports betting expansion bill during the 2026 legislative session, the measure has not gained any traction.

Bally’s Continues Broader Expansion Push

The Rhode Island sports betting award comes as Bally’s continues a broader expansion strategy across gaming, sports betting, and international markets.

The company is currently pursuing several major retail casino projects, including Bally’s Chicago Casino, which was scheduled to open this year but has been delayed until 2027.

Bally’s also received one of three New York City-area casino licenses to build a casino-resort in the Bronx. Furthermore, it has unveiled plans for a property in Las Vegas, adjacent to the A’s new ballpark.

Bally’s is also eyeing an international expansion, including the acquisition of Australia’s Star Entertainment Group. Earlier this year, the company opened its first retail property in the U.K., and in April, it confirmed talks to acquire Evoke plc, the parent company of William Hill and 888.