Rhode Island Faces a Make-or-Break Decision in Mobile Gambling Expansion
31 October 2026
Rhode Island is standing at a crossroads in its sports betting journey, debating whether to break away from its long-standing single-operator model in favor of an expanded mobile gambling landscape. As lawmakers weigh this decision, the state's future in online gaming hangs in the balance.
The legislature's renewed push for expansion follows a critical development this year: the Rhode Island Lottery approved Bally's application to become the state's second online sportsbook in May. That move, combined with a separate bill working its way through committees, sets the stage for a transformative shift in Rhode Island's gambling industry.
The Ocean State's current market is dominated by Bally Casino, which operates the sole online platform in conjunction with the Rhode Island Lottery. This arrangement stems from a 2019 law signed by Gov. Gina Raimondo, which legalized mobile sports betting for residents over 21 across the state, albeit with an in-person registration requirement. The platform, powered by International Game Technology (IGT), is the only statewide mobile option available to Rhode Islanders.
However, a bill currently in the pipeline could radically alter this landscape. Senate Bill 3118, which passed the Senate by a 30-6 vote and was referred to the House Finance Committee, aims to invite four to six new operators into the state. If enacted, the law would require the Rhode Island Lottery to solicit applications for additional online wagering platforms starting January 1, 2027, opening the door for competitors like FanDuel and DraftKings to enter the market.
Advocates for the expansion see it as a golden opportunity to boost revenue for the state. Rhode Island currently levies a 51% tax on sports gambling, and with an expanding number of players eager to place bets on their favorite games, the stakes are high. According to the Lottery, the state pulled in $26.7 million in online sports betting revenue from July 2025 to March 2026, claiming $13.6 million of that total.
More on this is available via https://bet-ri.com/.
But not everyone supports this outcome. Lottery officials and some lawmakers worry that a wider array of options could reduce revenue by dispersing it across multiple platforms. Opponents also argue that multiple operators would lead to aggressive marketing, potentially causing constitutional concerns and increasing gambling-related harm.
These political challenges come just a year after IGT extended its contract with the Rhode Island Lottery, signing a two-year deal in January to continue powering statewide sports betting through November 2028. That raises questions about the Lottery's ability to transition to a multi-operator model, even if the legislature approves it.
Nonetheless, progress continues. In June, the Rhode Island Senate passed a sports betting expansion bill by a 29-6 margin, sending it to the Assembly Finance Committee. If approved, the bill would require the Rhode Island Lottery to accept new sports betting operator applications by January 1, 2027, provided it can navigate existing contracts and regulatory hurdles.