Rhode Island Sends out RFI to Consider Market Expansion

Little Rhody’s little sports betting market may soon be getting bigger.

The Rhode Island Lottery has sent out a Request for Information (RFI) to several online sportsbooks. They asked the operator for their feedback on potentially joining the market, which currently has just one online sportsbook available. The requests were sent to many major players, including DraftKings, FanDuel, and Fanatics.

The decision to send out the RFIs brings Rhode Island one step closer to expanding its sports betting market. The idea came after a Spectrum Gaming study found that the state is missing out on millions in tax revenue due to its sports betting monopoly.

The lottery currently runs Sportsbook Rhode Island in partnership with IGT. The contract between the two sides runs out towards the end of 2026, making it far more challenging to expand the market. 

Several key lawmakers have complained that the IGT contract makes discussions over expansion a waste of time, but that didn’t stop proponents from proposing a bill to do so earlier this year. The bill failed, but the RFI shows that the effort is far from over.

Monopoly Makes Prediction Markets a Bigger Threat

While the benefits that market expansion would bring to bettors are a driving force for the effort, they aren’t the only factor.

Sports prediction markets continue to thrive across the US. Operators like Kalshi have expanded their markets, creating an almost identical experience to using a sportsbook. This has led to a spike in volume this fall, as more bettors are tempted to make the switch.

Which major sportsbooks, like Caesars, have reported little impact from prediction markets, but that won’t be the case for Rhode Island. The Lottery’s sportsbook doesn’t offer the same kind of experience as other major sportsbooks, which will make sports prediction markets an enticing option for bored bettors. 

Losing customers to prediction markets will continue to cut into the state’s tax revenue from sports betting. That puts pressure on the state to bring in more sportsbooks before prediction markets can gain a stranglehold on the state.