Rhode Island’s sportsbook cap doubles to two, still 51% taxed

A 2025 state-commissioned study recommended Rhode Island grant four to six extra licences & cut the tax rate.

The hit

Rhode Island’s online sports betting monopoly ends this month, when Bally Bet joins the Rhode Island Lottery’s book, according to Casino.org. The Sports Betting Alliance, backed by DraftKings, FanDuel, BetMGM, Fanatics & bet365, says even two operators will leave tens of millions in tax dollars on the table.

Why it matters

Sportsbooks with better name recognition said the tax on sportsbook revenue kept the state unattractive, according to Casino.org. A state-commissioned study by Spectrum Gaming recommended the state license more books at a lower rate instead, but the state opted to start with only one. FanDuel’s Cory Fox told NBC 10 that competition pulls bettors off the illegal market & keeps them from travelling to neighbouring markets. Separately, the Sports Betting Alliance says Rhode Islanders make millions of online bets each year in Massachusetts, Connecticut & New York.

The record

Lottery sportsbook monopoly ends	25 November (Casino.org)
Sportsbook revenue tax rate	51% (Casino.org)
Additional licences recommended	4 to 6 (Spectrum Gaming study, 2025)
Alternative tax rate suggested	20%-25% (Spectrum Gaming)
Licence applications received	2, Bally Bet & BetRivers (Casino.org)

What happens next

Rhode Island’s General Assembly convenes 5 January 2027 for its next session, where the licensing model & tax rate could be revisited.

Sources: Sportsbooks Warn Rhode Island: Duopoly Leaves Money on Table

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