Rhode Island Weighs Ending Sports Betting Monopoly to Boost Revenue

The Lottery is evaluating the feasibility of introducing more operators to the market, driven by the desire to increase state revenue and improve service quality. It issued a Request for Information (RFI) over the summer, receiving responses from eight major industry firms.

High-Profile Competition and Revenue Goals

Eight companies expressed interest in entering Rhode Island’s market. These include industry giants like FanDuel, DraftKings, BetMGM, Bally’s, Fanatics, Kambi, OpenBet, and the incumbent, IGT. The Lottery will use this feedback to craft a formal Request for Proposals (RFP), which it may issue as early as this month.

Proponents of the expansion argue that increasing competition could significantly boost the state’s coffers. Rhode Island collected nearly $3 million in online betting revenue in August. By comparison, neighboring Massachusetts, with seven apps, collected over $11 million, and Connecticut, with three apps, collected over $13 million.

Furthermore, the existing Sportsbook RI app, managed by IGT since 2019, has faced criticism for limited features and technical issues. Its reputation suffered particularly on September 7, 2025, when its servers crashed for 75 minutes just before the start of the 4:00 PM NFL games. Introducing rivals could lead to greater stability, innovation, better customer service, and more competitive odds.

Regulatory Concerns and Demographic Risks

While the revenue potential is tempting, regulators are weighing the potential downsides, which include the risk of marginal revenue growth and increased social harm.

Professor Patrick Kelly of Providence College, a gambling researcher, expressed skepticism about the financial impact. He doubted the change would be “much of a game changer,” noting that Rhode Island has a smaller player base compared to its neighbors.

A more pressing concern involves the state’s lower legal betting age. Rhode Island permits wagering at age 18, whereas Massachusetts and Connecticut require players to be 21. Kelly warned that introducing more platforms will likely increase exposure to aggressive marketing, potentially leading to a surge in addiction among young male students. He cautioned, “If you bring in all these other sports betting platforms, get ready for the advertising.”

Legislative attempts to expand the market have already encountered roadblocks. A Senate bill that would have allowed three to five providers by July 2026 passed the Senate but stalled in the House. The Rhode Island Lottery will continue its assessment before moving forward with any official changes.