The 2026 Market Expansion
For the first time since 2018, Rhode Island is opening its sports betting market to competition. Senate Bill 748, passed in June 2025, ends the IGT exclusive contract and authorizes 3–5 new operators starting in early 2026.
What SB 748 actually does
SB 748 directs the Rhode Island Lottery to not renew any existing sports-wagering vendor contracts after July 1, 2026, and to issue an open invitation for new applications. The Lottery is authorized to award between 3 and 5 new sports betting licenses to compete alongside (or replace) the current Sportsbook RI platform.
Why now?
A May 2025 report from Spectrum Gaming Group commissioned by the state recommended adding 4–6 new vendors. The report flagged three problems with the status quo:
- Sports betting handle has stagnated at roughly $400M annually
- RI bettors regularly cross into Massachusetts (7 operators) and Connecticut (3 operators) for better odds and apps
- The Sportsbook RI app, built on legacy IGT/William Hill technology, scores below DraftKings and FanDuel
Who is bidding?
Eight companies expressed interest during the summer of 2025. The headline names:
- DraftKings — #1 US sportsbook by handle
- FanDuel — #1 by revenue
- BetMGM — top 3 nationally
- Bally’s Corporation — incumbent, defending its position
Three additional unnamed operators have signaled interest. The mix of bidders suggests RI will end up with a competitive multi-operator market by late 2026.
The tax-rate question
The single biggest open question is whether the state will keep its 51% GGR tax. That rate was tolerable for Bally’s only because it also collects the 17% host facility fee — meaning the IGT/Bally’s economics work out far better than the headline 51% suggests. New entrants without the host fee would not be able to compete at 51%. Industry analysts expect the rate to drop closer to 20–25% for new licensees — comparable to MA (20%) and CT (13.75%). See the sportsbook tax deep-dive.
Timeline
- May 23, 2025 — Spectrum Gaming Group report published
- Jun 5, 2025 — RI Senate passes amended SB 748
- Feb 19, 2026 — Application deadline for new licenses
- Jul 1, 2026 — IGT exclusive contract expires (no renewal)
- Nov 2026 — RI Lottery targets first new license award
What it means for bettors
If the expansion proceeds as scheduled, by late 2026 RI bettors will likely have access to multiple competing apps — better odds, better promotions, better user experience, and an end to the cross-border drive into Massachusetts.