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Rhode Island is finally preparing to open its sports betting market, even if only a little. While the state has extended its long-running deal with IGT, officials have confirmed that one more online sportsbook will be allowed to operate later this year.
At the moment, IGT runs the state’s only legal betting platform, Sportsbook RI. This setup has kept Rhode Island as a monopoly market, with no competition and no esports betting options for players.
That situation is expected to change in November 2026.
Rhode Island Plans Limited Expansion
The Rhode Island Lottery has confirmed it will approve one additional online sportsbook app alongside Sportsbook RI. According to lottery officials, this new operator will be allowed to launch after November 2026.
The goal is not a full open market, but a slow and controlled expansion. State officials want to see how a second sportsbook performs before deciding whether more licenses should be issued in the future.
Why the State Is Moving Carefully
A study ordered by the Lottery last year suggested that Rhode Island should add four to six online sportsbooks to stay competitive with nearby states. The report showed that markets with multiple operators usually earn more revenue than monopoly systems.
However, the same study warned that too many operators could increase regulatory pressure and costs. Because of this, Rhode Island chose a middle path. The state will test one new sportsbook first, then review the results before taking any further steps.
Officials plan to study how well the new app is received by bettors and whether it actually increases overall betting revenue.
What This Means for Esports Betting
Right now, Sportsbook RI does not support esports betting. With a second operator entering the market, there is a real chance that esports wagering could finally become legal in Rhode Island.
Many major betting brands already offer esports markets in other states, so this expansion could bring new betting options that residents do not currently have access to.
IGT Contract Extended Until 2028
Alongside this expansion news, IGT has signed a two-year contract extension with the Rhode Island Lottery. This deal will keep IGT as a key partner until 2028.
IGT officials stated that the company will continue improving the Sportsbook RI app and supporting state revenue goals. Despite this, Rhode Island’s betting market has struggled to grow under the exclusive model.
Market Struggles and High Taxes
Rhode Island has one of the highest betting tax rates in the United States at 51 percent. Because of this and limited competition, betting activity in the state has slowed.
Last year, wagering dropped by over three percent. As a result, tax revenue also fell, with the state collecting less money than it did in 2023.
This slowdown is one of the main reasons Rhode Island is now willing to test competition.
Big Names Interested in the New License
Several major betting companies are already preparing proposals for the new license. Interested operators include Bally’s, FanDuel, DraftKings, BetMGM, Fanatics, Kambi, and OpenBet.
All proposals must be submitted by February 19, after which the Lottery will review and select the winning platform.
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