Bally’s Corporation is continuing to solidify its footprint in Rhode Island’s commercial gaming market after being awarded a vendor license to expand its presence in the state.
According to NBC 10 WJAR, the Rhode Island Lottery selected Bally’s Corporation as the state’s next online wagering vendor licensee ahead of the end of IGT’s exclusive tag to operate a sportsbook in the state. Bally’s is set to launch online sports wagering in Rhode Island after a push by the Rhode Island Lottery to open up the state’s market.
“Bally’s is thrilled to have been awarded a second sports betting license by the State of Rhode Island,” Bally’s spokeswoman Patti Doyle told NBC 10 WJAR. “We appreciate the confidence and trust the State has placed in our ability to provide a best-in-class product – built for scalability, innovation, and the evolving demands of modern bettors – which will generate additional revenue to benefit the Rhode Island taxpayers.”
Rhode Island has provided residents and visitors with access to sports wagering since 2018, with online wagering exclusively offered through Sportsbook Rhode Island, a platform powered by IGT after the company secured a partnership with the lottery.
In January, IGT extended its pact with the Rhode Island Lottery to run through 2028. IGT is now set to have competition in Rhode Island as its exclusive tag expires on Nov. 26.
- Bally’s is set to launch online wagering operations in Rhode Island in November
- The company’s contract, which has yet to be signed, is set for a five-year term
- Bally’s and the Rhode Island Lottery’s agreement can be extended for five years
Bally’s has not responded to a request for comment regarding its new vendor license.
Rhode Island’s vendor license bidding process
Bally’s was awarded the license after submitting a bid alongside Rush Street Interactive.
“There was a thorough review process, with Bally’s beating out Rush Street Interactive,” Rhode Island Lottery Deputy Director Michael O’Rourke told NBC 10 WJAR.
The Rhode Island Lottery has not disclosed its reasoning for awarding Bally’s a vendor license, but Bally’s has already established a presence in the Ocean State as the owner and operator of two retail casinos: Bally’s Lincoln Casino Resort and Bally’s Tiverton.
According to O’Rourke, Rhode Island’s tax obligations may have been a reason for RSI and Bally’s being the only two companies to apply for a potential vendor license. Rhode Island currently taxes IGT at a 51% rate on revenue for offering sports wagering in the state.
“I think that was part of the reason some of the companies did not respond,” added O’Rourke.
The 51% tax rate gives Rhode Island one of the highest for gambling in the U.S.
Bally’s existing operations in Rhode Island
Bally’s brick-and-mortar casinos in Rhode Island house retail sportsbooks, providing the gaming giant with an existing source of revenue derived from sports wagering in the state.
Rhode Island’s sports betting tax rules call for 51% of revenue to be distributed to the state, while vendor licensees keep 32%. The remaining 17% goes to retail sportsbooks. Once Bally’s launches online wagering operations in Rhode Island, the company is poised to retain 49% of revenue by combining its vendor license and retail sportsbook revenue.
The revenue adds to Bally’s online casino earnings. In March 2024, Bally’s emerged as Rhode Island’s first iGaming operator after the state legalized the vertical a year prior.
The state’s online casino bill provides Bally’s with exclusive rights to offer iGaming, while providing IGT with an official vendor license. Under Rhode Island’s iGaming measure, online slots are taxed at a 61% rate, while table games receive a 15% rate.
IGT’s iGaming vendor license is separate from its license as a sports wagering provider.
Rhode Island could potentially add another sports betting operator to its market through Senate Bill 3118, a measure that aims to add up to six new licensees in the state. The bill was introduced in March, and awaits reading by the Senate Labor and Gaming Committee.
