The Rhode Island Lottery has set a target date to offer a second online sports betting vendor in the state, which would end International Game Technology's (IGT) sports betting monopoly. Despite opening up the market, the decision has been met with criticism from lawmakers who previously wanted to add up to six sportsbook operators in the state.
Key Takeaways
- Rhode Island is looking for a second sports betting operator in the state.
- The announcement comes after a report last year suggested the state should add four to six operators.
- Its current sportsbook, Sportsbook RI, operated by IGT, announced earlier this week that its contract had been extended to 2028.
Currently, Rhode Island sports betting has just one operator, which has been subject to harsh reviews from both lawmakers and residents despite having its contract extended with the Rhode Island Lottery through November 2028.
Some IGT customers have expressed dissatisfaction with the IGT app, while lawmakers argue that more competition in the market is needed to stop bettors from placing bets in neighboring states.
Prior to IGT’s extension, the Rhode Island Lottery commissioned a report on the state’s sports betting market with non-partisan consultancy firm Spectrum Gaming Group, which published its findings on May 1 recommending that Rhode Island adopt up to six sports betting operators.
In June, the Senate passed a bill introduced in March by Senator Frank Ciccone with a vote of 30-2. The premise of the bill was to scrap IGT’s sports betting monopoly by allowing additional operators to apply for a license. DraftKings supported the bill, saying it would increase tax revenue in the state. IGT opposed, arguing that the current system was more successful than some may think.
The bill ultimately failed the following month after the House was unable to schedule a meeting on it.
Following this, the Rhode Island Lottery issued a Request for Information over the summer, wanting to see which operators were interested in the state’s sports betting market. Eight firms responded, including DraftKings, FanDuel, and BetMGM.
Despite the rise in interest from various sports betting operators and Spectrum Gaming Group’s recommendation, the Rhode Island Lottery has decided to go with one new sportsbook, with the chosen operator being awarded a five-year contract. Potential bidders now have until Feb. 19 to submit their applications.
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IGT PlaySports launches in Latin America
As IGT continues to operate its sports betting monopoly in Rhode Island, it has also expanded its presence in the Latin American market by launching its PlaySports division in Mexico and South America in August of last year.
The multiyear sports-wagering technology and services agreement with Hipodromo de Agua S.A de C.V. and Distribuidora Internacional de Equipos de Juego expanded IGT’s PlaySports platform in both Mexico and Latin America through Corporación Caliente.
"IGT PlaySports is thrilled to expand our technology and service footprint to Mexico and Latin America through our multi-year retail and trading services agreement with Caliente, one of the largest sports betting operators in the region," said Joe Bertolone, IGT SVP Sports Betting. "We've worked hand-in-hand with the Corporación Caliente team to deliver a future-proofed solution and a complementary trading services program that will meet regional needs, scale with future opportunities and captivate sports fans."
