Rhode Island finally gets a second sportsbook after 7 years of a monopoly

The Bally Bet company enters as Rhode Island’s second online sportsbook operator.Source: Whop

The Rhode Island Lottery just announced this past week that Bally’s corporation is the second licensed online booking platform. And these announcements ended the IGT’s Sportbook monopoly run since 2019. That's a solid 7 years where Rhode Island’s punters had only one option.

Michael O'Rourke, the Lottery Deputy Director, had hoped that more companies would apply, but they didn’t. The only other contender that showed up was Rush Street Interactive’s BetRivers, and of course Bally’s. ^[1]

Why Did the Big Name Stay Away?

The state has a whopping 51% tax on online betting revenue, and as O'Rourke mentioned, this was likely the reason players like Big players FanDuel and DraftKings just sat this one out. ^[1] [2]

That 51% number is among the highest in the country. And from a financial standpoint, some argue the holdback is reasonable. Imagine handing over half your revenue to taxes, even before you pay a single staff member! 

Another reason could be the decline in the state's betting handle. In March, it went down by nearly 28%. Having one option is limiting. So, some punters cross state lines to Massachusetts, which has 7 options, and other states to place bets. ^[3] [4]

Why Bally's Was the Obvious Pick

Bally’s was just the logical pick here. 

The company is already operational in the state. It operates two retail casinos in Tiverton and Lincoln, and so we can say the brand already has the people’s trust and recognition. ^[1]

This new arrangement, which will officially go live in November, will have Bally’s retain a 49% operator share. To Bally’s, this is huge because it is a meaningful jump from the 17% they previously received via their retail sportsbook cut. ^[4][5]  

Come November, IGT’s exclusivity window shuts. Mind you, this is at the heart of the NFL season. If the contract is finalized, this is also a great start for Bally’s.  ^[6]