News Summary
The Rhode Island Lottery has received eight responses from sportsbook operators seeking to enter the state’s sports betting market, currently dominated by IGT. This shift indicates potential competition, which is supported by companies like Bally’s and DraftKings. As Rhode Island aims to enhance its sports betting framework, concerns over problem gambling and marketing strategies targeting younger bettors emerge amidst discussions on increasing options and driving revenue growth.
Rhode Island Lottery has received eight responses to its Request for Information (RFI) from sportsbook operators aiming to enter the state’s sports betting market. This development highlights a significant potential shift in Rhode Island’s current sports betting landscape, which is dominated by one operator.
At present, the International Game Technology (IGT) holds exclusive rights to sports betting operations in Rhode Island until November 2026. IGT has been managing the Sportsbook RI app since its launch in 2019. However, IGT has faced mixed feedback from users, particularly due to a notable 75-minute outage on the first Sunday of the NFL season, which raised concerns about its reliability as the sole operator.
The variety of companies expressing interest in Rhode Island’s sports betting market includes Bally’s, BetMGM, DraftKings, Fanatics, FanDuel, Kambi, and OpenBet. Such a diverse range of potential entrants signifies a move towards competitive options for residents, as Rhode Island’s gambling regulators contemplate the merits of transitioning from a monopoly to a more competitive model involving multiple operators.
Lottery spokesperson Paul Grimaldi indicated that the Lottery is currently assessing the feasibility of introducing additional apps based on the responses received from the RFI. He mentioned that potential Requests for Proposals (RFP) could be issued soon, implying that the state is taking steps toward enhancing its sports betting infrastructure.
While the specific responses to the RFI have not been made public, some of the interested companies have expressed their views. Bally’s has shown a keen interest in launching a sportsbook within the state, and Fanatics has voiced its support for a more competitive sports betting market. DraftKings, although not commenting specifically regarding Rhode Island, has been actively pursuing expansion opportunities elsewhere and previously backed legislation to permit multiple operators in the state.
In March, legislation was introduced to allow for three to five sports betting vendors, which successfully passed the Senate but ultimately stalled in the House of Representatives. Advocates for this expansion argue that permitting more operators could help recapture revenue that Rhode Island has lost to neighboring states like Massachusetts and Connecticut.
The disparity in revenue between these states highlights the potential benefits of expanding Rhode Island’s sports betting market. August revenue reports revealed that Massachusetts generated $55.8 million from seven sportsbooks, while Connecticut earned $13.2 million from three sportsbooks. In comparison, Rhode Island’s single-operating platform saw revenues just under $3 million during the same time frame. Currently, Rhode Island stands as one of only four states (alongside New Hampshire, Delaware, and Montana) that operate a single sports betting app.
While the prospects for expansion are promising, some experts are raising cautionary notes. Patrick Kelly, a professor at Providence College, has expressed concerns that increased betting options may lead to a rise in problem gambling. This apprehension is supported by a recent survey conducted by the University of New Hampshire, which indicated that only 15% of Rhode Island residents participate in sports betting. This figure is lower than that of Massachusetts and Connecticut, where participation rates are 18% and 17%, respectively.
In the New England survey conducted, out of 3,671 residents, 737 identified themselves as Rhode Island residents. Notably, Rhode Island allows individuals aged 18 and over to participate in sports betting, while students in neighboring states are restricted to betting at age 21. This may lead to an increase in the interest of younger bettors as Rhode Island becomes a more attractive option.
Concerns have also been raised regarding the impact of marketing efforts that will likely increase with the introduction of more platforms. As the market expands, there is a possibility that advertising will target younger individuals, leading to a surge in participation that must be carefully monitored.
With $2.8 million in sports betting revenue, Rhode Island’s figures fall significantly short compared to neighboring states, sparking ongoing discussions about the need for regulatory updates to tap into the potential growth of the state’s sports betting industry.
Deeper Dive: News & Info About This Topic
- Rhode Island Current: Sportsbook Market Competition
- Covers: Rhode Island Sports Betting Monopoly
- Turn to 10: Expanding Sports Betting Options
- Wikipedia: Sports Betting
- CBS Sports: Rhode Island Sportsbook Status
- Google News: Rhode Island Sports Betting
Author: STAFF HERE PROVIDENCE WRITER
The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
