Rhode Island Approves Bally’s for Mobile Betting License

After years of waiting, bettors in the Ocean State will finally have a new mobile sportsbook.

The Rhode Island Lottery has approved Bally’s application to become the state’s second online sportsbook. The state has been under an exclusive contract with IGT to operate Sportsbook RI since 2019, but that deal is set to expire on November 26. Once it does, Bally Bet Sportsbook will be able to launch.

IGT is expected to continue to offer its sportsbook after its contract with the Lottery expires.

Big Win for Bettors

The lack of competition in Rhode Island’s sports betting market led many bettors to express frustration with Sportsbook RI’s long-time monopoly. They believed the lack of competition was leading to watered-down odds and fewer promotions on the IGT platform. This led some bettors to leave the regulated market, either abandoning the hobby or seeking alternatives to bet on sports.

While lawmakers acknowledged those concerns, its contract with the operator left them unable to expand. That deal will prevent Bally’s from launching until late in 2026, but the official approval is giving many bettors reason to be excited. 

Big Win for Bally’s

Rhode Island bettors aren’t the only ones with reason to celebrate.

Back in 2022, it seemed likely that Bally Bet would be among the next sportsbooks to exit the US mobile market. It blamed a decision to launch its platform as a “work in progress,” which scared many bettors away. However, the gambling giant wasn’t willing to give up so easily.

In 2023, Bally’s Corporation reached a deal with industry-leading software provider Kambi. The partnership led the mobile platform to close temporarily in June, and it launched a new and improved platform later that summer. 

Bally’s has been expanding since the re-launch, finding far more success as a mid-tier operator. 

While the Rhode Island market is small, it will present a chance for Bally’s to lead without competition from industry giants like FanDuel and DraftKings. 

Tax Change Needed for Rhode Island

Last year, the state contracted Spectrum Gaming Group to deliver a report on its sports betting industry. The group advised that the market is not being maximized and that 4-6 more mobile sportsbooks should be added. 

As a result, lawmakers asked the Lottery to add a second mobile sportsbook to launch once the IGT contract is expedited. Despite initial interest from the industry’s largest operators, only Bally’s and Rush Street Interactive applied. The lack of engagement is a troubling sign for future expansion, but the solution is far from a mystery.

Rhode Island’s 51% tax rate for online sportsbooks is tied for the highest in the US, matching the massive New York market. The state’s small population has led most sportsbooks to believe that entering the market wouldn’t generate enough profit to justify the investment. 

Lawmakers are already discussing the change, which would likely need to occur before the Lottery issues additional licenses.