Bally’s will become the second online sportsbook to operate in Rhode Island after it was selected for licensing this week, according to NBC 10 WJAR.
Key Takeaways
- Only two companies reportedly applied for an operator’s license.
- Rhode Island imposes a 51% gaming tax on sports betting operators.
- The state’s March betting handle was down nearly 28% year over year.
Bally’s was selected ahead of Rush Street Gaming-owned BetRivers as the second-ever Rhode Island-approved operator.
“Bally’s is thrilled to have been awarded a second sports betting license by the State of Rhode Island,” company spokesperson Patti Doyle said. “We appreciate the confidence and trust the State has placed in our ability to provide a best-in-class product - built for scalability, innovation, and the evolving demands of modern bettors - which will generate additional revenue to benefit the Rhode Island taxpayers.”
The window for license applications was opened toward the end of last year. Prospective operators were given until February to submit their paperwork and necessary materials to the state.
One Rhode Island Lottery official said Rush Street was the only other company to apply for an operator’s license.
Enjoying Covers content? Add us as a preferred source on your Google account“There was a thorough review process,” Lottery deputy director Michael O’Rourke told NBC 10 on Wednesday. “There was a hope we’d get more companies to reply, but they didn’t.”
Bally’s to catalyze Rhode Island sports betting
Most states have a competitive marketplace with multiple sportsbooks fighting for audience acquisition and retention.
The Rhode Island Lottery ultimately decided adding new operators would help the state increase tax revenue and retain in-state customers, rather than lose them to nearby states such as Massachusetts.
Bally’s will maintain a presence in the Rhode Island sports betting market for at least five years, with the option to extend for another five.
Although a contract with Bally’s has not been finalized, the expectation is that it will launch in November when the state’s exclusivity arrangement with IGT expires.
Bally’s had already been benefitting from the state’s arrangement with IGT. Bally's, which operates the only two physical sportsbooks inside state lines at its casinos, has received 17% of sportsbook revenue. IGT held on to 32%, and the remaining 51% was paid to the state in gaming taxes - the highest rate in the country.
Bally’s will now take 49% of revenue generated through its online sportsbook, although it will still pay 51% in taxes, per NBC 10. The large charge and smaller market size are believed to have scared off top sportsbook companies such as FanDuel and DraftKings.
Rhode Island market size
Recent state figures show the sports betting handle reached $31.6 million in March, leading to $2.8 million in Rhode Island sports betting revenue. The handle dropped 27.8% year over year, although the revenue was up 23.6% over the same period.
The state recorded $420.5 million in total sports wagers in 2025. That resulted in $38.2 million in revenue based on a 9.1% hold.
