Bally’s has seen off competition from Rush Street Interactive’s BetRivers to secure the second online sports betting licence in Rhode Island.
Bally’s Corporation has seen off competition from Rush Street Interactive’s BetRivers to secure the second online sports betting licence in Rhode Island.
According to news outlet NBC 10 WJAR, the Rhode Island Lottery selected Bally’s to launch the state’s second betting website. This will run alongside Sportsbook Rhode Island, the existing site operated by International Game Technology (IGT) since 2019.
Details of the new website are yet to be confirmed. However, it is understood that Bally’s will launch its online offering in November. This will coincide with the end of an agreement that granted IGT exclusivity for online sports betting in the state.
It was also reported that Bally’s will operate online in Rhode Island for at least five years, with the option to extend for another five years after that term ends.
“Bally’s is thrilled to have been awarded a second sports betting license by the State of Rhode Island,” company spokesperson Patti Doyle said.
“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.”
Operators put off by high tax in Rhode Island
Rhode Island’s online sports betting market has been limited since its launch in 2019 due to IGT’s exclusivity. The decision to allow a second licensee sought to grow the market and generate additional tax income for the state.
While some larger operators were linked with bidding for the licence, the process only attracted two formal bids. A Rhode Island Lottery official said BetRivers was the only other operator to have bid for the licence.
This could be put down to the tax rate for online operators, which is one of the highest in the US. Online sports betting is taxed at a rate of 51%, with operators only retaining 49% of online revenue.
However, this was seemingly enough for Bally’s, which already has a wagering presence in the state through its retail sportsbooks. The operator run facilities at its Bally’s Lincoln and Bally’s Tiverton properties.