The Rhode Island Lottery has officially selected Bally’s Corporation to operate the state’s second online sportsbook license. Bally’s emerged victorious over Rush Street Interactive’s BetRivers in a bidding process that notably drew only two applicants.
While a final contract has yet to be signed, the deal puts Bally’s on a trajectory to launch its platform in November, coinciding with the expiration of IGT’s exclusive operating deal.
The Challenge of the 51% Tax Rate
Rhode Island maintains one of the most aggressive tax structures in the United States, keeping 51% of all online sports betting revenue. The remaining 49% is typically split between the online operator and the retail casino partner.
Currently, under the IGT arrangement, IGT receives 32% while Bally’s receives 17% through its ownership of the Lincoln and Tiverton retail casinos. By securing the new online license, Bally’s will effectively retain the entire remaining 49% share.
Rhode Island Lottery Deputy Director Michael O’Rourke expressed a desire for more competition during a conversation with NBC 10, stating there had been “a thorough review process” despite the small applicant pool:
“There was a hope we’d get more companies to reply, but they didn’t.”
Market Dynamics and Expansion Stalls
Despite being an early adopter of sports betting in 2018, Rhode Island has struggled to open its market. Between July 2025 and March 2026, online betting generated $26.7 million in revenue, with the state collecting $13.6 million. Critics argue that the high tax rate and single-operator system limit the market’s full potential.
Efforts to expand to five sportsbooks, led by Senate Majority Leader Frank Ciccone, have repeatedly stalled in the House. This is despite a Spectrum Gaming Group study which recommended lowering the 51% tax rate to improve regional competitiveness.
Bally’s Broad Strategic Horizon
The Rhode Island award is just one piece of a massive expansion for Bally’s. The company is currently managing several high-stakes projects, including the Bally’s Chicago Casino (delayed until 2027) and a new casino-resort license in the Bronx.
Internationally, Bally’s recently opened its first U.K. retail property and has entered talks to acquire Evoke plc, the parent group behind William Hill and 888, as it continues its quest for global dominance.
