- Rhode Island is adding a second online sportsbook by November 2026 after six years of having only one operator, with applications due February 19.
- New York Assemblywoman Carrie Woerner wants to expand the state’s market from 8 to 16 operators while lowering the current 51% tax rate.
- Rhode Island’s betting revenue has dropped to $18.6 million while New York collected $1.3 billion in taxes from nearly $26.3 billion in wagers during 2025.
PROVIDENCE, R.I. – Two states in the Northeast are looking to change their sports betting markets in very different ways as they try to increase competition and revenue.
There has only been one company operating online sports betting in Rhode Island for the past six years. By November 2026, the Rhode Island Lottery hopes to award a second license, providing consumers with an alternative to International Game Technology’s Sportsbook RI app.
Rhode Island is starting with just one operator, despite consulting firm Spectrum Gaming Group recommending that the state add four to six operators to keep up with other states.
Last year, legislators attempted to enact legislation that would have allowed three to five legal Rhode Island betting sites, but those attempts were unsuccessful. As a result, officials chose to just add one new operator. Companies can now send in their applications for one five-year contract until the February 19 deadline.
Eight businesses showed they were interested over the summer, with big names like DraftKings, FanDuel, and BetMGM among them. Providence-based Bally’s has said it will be putting in an application as well.
This growth coincides with a decline in legal sports betting for Rhode Island’s earnings. In fiscal year 2025, the state’s general fund revenue dropped from $19.2 million to barely $18.6 million. In contrast, Connecticut earned $26 million from internet gambling, while Massachusetts earned almost $157 million.
New York Takes A Different Approach
Assemblywoman Carrie Woerner of New York seeks to increase the size of the state’s already large market. By the end of January 2026, there will be at least 14 New York sportsbooks, and by January 2027, there will be 16 according to her Bill A6013.
The law also calls for reducing New York’s highest tax rate in the nation on sports betting, which is 51%. With 13 or 14 operators, the rate would decrease to 35%, and with 15 or more, it would decrease to 25%.
New York already has the biggest sports betting market in America. In 2025, the state received approximately $1.3 billion in tax income from bets totaling nearly $26.3 billion.
The question of whether adding more operators will genuinely expand the market or merely split the current capital across more businesses is up for dispute. There has been no progress on the bill while it is in committee.
