Bally’s will become the second active online sports betting platform in Rhode Island after the company secured a license in the state.
Rhode Island launched sports betting in 2019, but offers users only one option, Sportsbook Rhode Island. The state extended its deal with IGT to operate the platform earlier this year, but also opened the door for another company to enter the market.
Bally’s was confirmed as the new licensee on Wednesday, with Lottery Deputy Director Michael O’Rourke admitting it was not a competitive application process. Only one other operator applied, Rush Street Interactive.
“Bally’s is thrilled to have been awarded a second sports betting license by the State of Rhode Island,” said spokesperson Patti Doyle. “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.”
High Tax Rate Puts Off Applicants
“There was a hope we’d get more companies to reply, but they didn’t,” O’Rourke told NBC 10. The prohibitive 51% tax rate on gambling revenue may have put many companies off.
“I think that was part of the reason some of the companies did not respond,” O’Rourke admitted.
Rhode Island’s tax rate is the highest in the country, along with New York and New Hampshire. New Yorkers wager more than any other state, which is some compensation for the high tax rate. Rhode Island, with a population of just over 1 million, is a less attractive proposition.
Bally’s already operates the state’s two licensed casinos in Lincoln and Tiverton, meaning it already gets a cut of the sports betting revenue.
Under the state’s revenue-sharing structure, the state receives 51% in taxes, the online operator collects 32%, and the physical sportsbook gets 17%. With a foothold in the state already, Bally’s seemed the obvious choice to launch an online platform.
Esports Betting Could Be Launched At Bally’s
Sportsbook Rhode Island does not currently offer esports betting, but Bally’s online platform, Bally Bet, offers odds on most major events.
The platform will go live in Rhode Island in November, and esports could feature on the app. Bally’s has had a keen interest in esports over recent years and made a $100 million offer to acquire Allied Esports in 2021. In the end, it lost out to private investment firm Element Partners.
In the same year, Bally’s successfully completed its acquisition of Gamesys, which fuels its online betting engine. The company’s technology allows it to manage thousands of micro-bets per second and offer a wide range of in-play esports markets.
Bally’s is looking to expand its online presence with the acquisition of evoke, the parent company of popular online platforms William Hill and 888. The company is rumored to be the frontrunner as the struggling UK-based gambling group looks for buyers.