Sports Betting Alliance renews push to expand Rhode Island sports betting

The Sports Betting Alliance (SBA) is renewing its efforts to expand competition in Rhode Island's online sports betting market. The industry organisation believes the state could retain more betting activity and generate additional revenue by allowing more operators to enter its regulated market.

The renewed campaign follows figures showing that millions of wagers were placed outside Rhode Island using accounts registered in the state. According to data presented by the Alliance, nearly 103,000 Rhode Island accounts were associated with 4.23 million bets placed in Massachusetts, Connecticut and New York between July 2025 and July 2026.

The figures have renewed discussions about whether Rhode Island's existing regulatory and commercial arrangements provide enough opportunities for licensed operators to compete. However, the debate also raises questions about state revenue, market sustainability and the financial implications of changing the current revenue-sharing framework.

Alliance highlights cross-border betting activity

The Sports Betting Alliance has identified cross-border wagering as an important argument for reconsidering the structure of Rhode Island sports betting.

Its reported figures cover betting activity associated with accounts registered in Rhode Island but used while account holders were physically present in neighbouring states. These transactions demonstrate the extent to which customers connected to Rhode Island's market are participating in regulated betting platforms elsewhere.

The Alliance represents major sports betting businesses, including DraftKings, FanDuel, Fanatics Sportsbook and BetMGM. The organisation advocates for competitive regulated markets and argues that greater operator choice can benefit consumers while creating additional opportunities for governments to generate revenue.

Online sportsbook operators must comply with the geographical restrictions imposed by individual state regulators. Customers generally need to be physically located within a jurisdiction where their chosen platform is authorised to accept wagers. Consequently, an account registered in Rhode Island does not automatically allow its owner to place bets while physically located there if the operator is not licensed in that jurisdiction.

Alliance President and CEO Joe Maloney argued that the reported betting activity represents an opportunity for Rhode Island to reconsider its existing market structure.

“Every one of the 4.23 million bets Rhode Islanders placed in Massachusetts, Connecticut and New York is revenue that could have stayed in Rhode Island.

“Expanding the state’s regulated market would keep those bettors and the revenue and protections that come with them, here at home.”

The organisation believes additional competition could encourage customers to use locally authorised platforms when they are physically present in Rhode Island. It also argues that a broader regulated market could improve consumer access to established betting products and the safeguards associated with licensed operators.

Nevertheless, the reported number of wagers should not be interpreted as a guaranteed measure of revenue that Rhode Island could recover. Account holders may place bets outside their home state for different reasons, including travel and employment. Any financial benefit from introducing additional operators would depend on customer behaviour, market participation and the commercial conditions offered by the state.

Proposed expansion could generate additional revenue

The Sports Betting Alliance has also presented a financial argument for changing the state's approach to online sports betting.

According to the organisation, an expansion model previously considered by Rhode Island lawmakers could generate approximately $50 million in additional state revenue over a ten-year period.

This estimate represents the Alliance's assessment of the potential benefits of a more competitive market rather than an independently established government revenue forecast. The actual financial outcome would depend on several factors, including the number of participating operators, betting activity and the proportion of revenue allocated to public funds.

The legislative debate gained momentum during the 2026 session. Proposals considered by lawmakers included provisions that would permit between four and six sports betting vendors to operate in Rhode Island.

Senate Bill 3118 was among the measures addressing the proposed changes. It passed the Senate on 4 June 2026 before being referred to the House Finance Committee the following day. The corresponding House proposal, H8186, was also referred to the House Finance Committee. The broader legislative changes did not become law during the session.

The proposals sought to introduce a more competitive operating environment while revisiting the existing financial arrangements between the state, sportsbook vendors and casino facilities.

Rhode Island's existing revenue-sharing framework

One of the most significant disagreements surrounding the proposed expansion concerns the distribution of sports betting revenue.

Under the existing statutory arrangement, Rhode Island receives 51% of sports wagering revenue. The authorised sports wagering vendor receives 32% while the host facilities receive the remaining 17%.

This arrangement provides the state with a substantial share of the revenue generated through its regulated sports betting operations. However, the relatively high proportion allocated to the state has also been a consideration for companies evaluating whether to enter the market.

The proposed legislative changes included revisions to the revenue-sharing structure. Under the Senate proposal, the state would initially retain its existing 51% allocation until it reached the revenue generated in fiscal year 2025. The subsequent allocation would then change, increasing the proportion available to sportsbook vendors while reducing the state's percentage.

Supporters of reform argue that more commercially attractive conditions could encourage additional companies to participate. They believe stronger competition could expand the customer base and create opportunities for greater long-term revenue.

However, changing the distribution of existing revenue also presents financial considerations for the state. A reduction in its percentage would need to be assessed against any additional activity and income generated by a larger market.

Bally's prepares to enter the online market

Rhode Island has historically operated a single-provider online sports betting market through Sportsbook Rhode Island, which uses technology supplied by IGT.

That arrangement is expected to change with the planned introduction of a second online sportsbook operated by Bally's. On 8 May 2026, the Rhode Island Lottery tentatively selected Bally's for a five-year agreement to join the state's regulated online market.

Bally's selection followed a procurement process in which the company was one of two bidders. The second application was submitted by Rush Street Interactive. The Lottery's decision marked an important development for the state's digital betting sector after several years of operating with a single statewide online sportsbook.

The timing of the additional platform is connected to IGT's contractual exclusivity arrangements. The new online service cannot begin accepting wagers before 26 November 2026, when the relevant exclusivity period expires.

Importantly, the end of that exclusivity period does not mean IGT will immediately leave Rhode Island's sports betting market. The company signed a two-year contract extension with the Rhode Island Lottery in January 2026, allowing its PlaySports technology to continue supporting retail and mobile sports wagering through at least November 2028.

This distinction means the introduction of Bally's is intended to create additional competition rather than replace IGT's existing technology services.

The planned arrangement would therefore move Rhode Island away from its longstanding single-app structure. However, the introduction of a second platform does not itself establish that the state will eventually adopt a market containing four to six operators.

Lottery concerns remain part of the debate

While the Alliance supports broader competition, state officials have approached the proposed changes with financial considerations in mind.

The Rhode Island Lottery has previously assessed whether the state could benefit from adding another sportsbook under its existing commercial structure. Information presented by the Lottery in April 2026 indicated that two providers could generate approximately $1 million in additional state revenue before accounting for incremental operating expenses.

That assessment helps explain why regulators have taken a more cautious approach than industry representatives advocating for a substantially larger market.

Adding operators involves more than approving additional applications. Regulatory authorities must consider licensing requirements, compliance monitoring, technology arrangements and the resources required to supervise additional providers.

The proposed changes to the revenue-sharing structure also attracted objections from Lottery officials, who expressed concern that reducing the state's allocation could weaken public revenue. Their position reflects the importance of balancing greater market participation against the financial contributions that sports betting currently provides.

The question is therefore not simply how many operators Rhode Island should authorise. It is also whether the state can establish commercial conditions that attract qualified businesses without undermining its existing revenue model.

Competition and consumer protections remain important

The discussion surrounding Rhode Island sports betting also highlights the relationship between competition and consumer protection.

A larger number of licensed platforms could provide customers with additional choices, different betting products and competing commercial offerings. Operators would also have greater incentives to develop their services and improve the overall customer experience.

However, market expansion would require consistent regulatory standards. Additional companies would need to satisfy licensing requirements and comply with applicable rules covering customer verification, geographical restrictions, financial transactions and responsible gambling.

The state's approach to approving new platforms will therefore remain important. Commercial interest alone would not establish that an operator is suitable for the market. Regulators would need to evaluate financial stability, technical capabilities and compliance arrangements before granting operating permissions.

Any future changes would also need to consider the costs associated with supervising a larger market. Expanding the number of platforms without adequately addressing these responsibilities could create additional administrative demands.

For Rhode Island, the objective will be to identify a structure that supports sustainable competition while maintaining public oversight and protecting the financial interests of the state.

Conclusion

The Sports Betting Alliance's renewed campaign has brought Rhode Island's online sports betting framework back into focus. The reported 4.23 million wagers associated with Rhode Island accounts in neighbouring states provide an important reference point for discussions about market competitiveness and the movement of betting activity across state borders.

However, the figures alone do not establish how much additional revenue a broader market would generate. The Alliance's $50 million projection remains an industry estimate while the Lottery's assessment highlights the potential financial limitations of expanding the number of providers under the current arrangements.

The planned entry of Bally's represents a significant development because it will introduce another online option after years of a single-provider structure. Nevertheless, the wider proposal for four to six vendors remains a separate legislative question involving revenue allocation and regulatory responsibilities.

Ultimately, Rhode Island's challenge is to find a sustainable balance between market competition and public revenue. A successful expansion would need to demonstrate that additional operators can contribute meaningful economic value while meeting the state's regulatory expectations. The decisions surrounding the next stage of the market could therefore shape the future direction of regulated sports wagering in the Ocean State.

FAQs

Why is the Sports Betting Alliance calling for sports betting expansion in Rhode Island?
The Alliance believes additional operators could attract more betting activity to locally authorised platforms, increase competition and create opportunities for higher state revenue.

How many bets were associated with Rhode Island accounts outside the state?
The Sports Betting Alliance reported 4.23 million wagers associated with nearly 103,000 Rhode Island accounts between July 2025 and July 2026.

Which neighbouring states were included in the figures?
The reported betting activity took place in Massachusetts, Connecticut and New York.

How much additional revenue does the Alliance estimate Rhode Island could generate?
The Alliance estimates that an expansion model previously considered by lawmakers could generate approximately $50 million in additional state revenue over ten years.

Which companies are members of the Sports Betting Alliance?
The companies identified in connection with the campaign include DraftKings, FanDuel, Fanatics Sportsbook and BetMGM.

How does Rhode Island currently distribute sports betting revenue?
Under the existing statutory framework, the state receives 51%, the authorised sports wagering vendor receives 32% and host facilities receive 17%.

Which company is expected to introduce Rhode Island's second online sportsbook?
Bally's was tentatively selected by the Rhode Island Lottery for a five-year agreement to introduce an additional online sportsbook.

When can Bally's launch its second sportsbook in Rhode Island?
The platform cannot begin accepting wagers before 26 November 2026, when IGT's relevant exclusivity period expires. The actual launch remains subject to the Lottery's arrangements and approval.

Did Rhode Island approve legislation allowing four to six sportsbook operators?
No. A Senate proposal passed the Senate in June 2026 but did not complete the legislative process. The proposed expansion provisions did not become law.

Why did Lottery officials raise concerns about the proposed expansion?
Officials raised concerns about the potential impact of changing the state's revenue allocation and the costs associated with supervising additional providers. The Lottery also estimated that two providers could generate approximately $1 million in additional state revenue before incremental operating expenses.