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Rhode Island has offered one of the most inferior sports betting options since 2018, allowing long established international operators like BetOnline (since 1999), and now prediction markets like Kalshi to flourish
The state just filed a legal complaint to keep prediction markets Kalshi and Polymarket from operating in Rhode Island
Kalshi fired first though after sensing the Rhode Island action was forthcoming
Rhode Island has one of the most restrictive regulated sports betting markets in the U.S. with only one regulated option availiable. International Game Technology PLC (IGT), formerly Gtech S.p.A. and Lottomatica S.p.A. has long held the monopoly here. The official statewide mobile sportsbook operates through the Rhode Island Lottery and is branded as Sportsbook RI.
To its credit, Rhode Island was among the very first states to regulate the activity following the SCOTUS decision. That is perhaps the only positive thing we can say.
Case in point: Countless Rhode Island sports fans were left highly frustrated after the state’s only legal sportsbook app crashed just before kickoff the first week of the 2025 NFL season. Service was restored later in the afternoon (after the games had concluded, which doesn't exactly help gamblers). We don't even know if a repeat occurred in 2026 as so many Rhode Island sports bettors flocked to other sites.
While the state is most known for its own successful college basketball programs, gamblers here love their regional teams like the reigning AFC champion New England Patriots, their Boston Celtics, and the Boston Red Sox, who have somehow managed to stay within striking distance of the .500 mark at the time of this writing.
This past season sports bettors in Rhode Island had other options that included - not just offshore sportsbooks - but prediction markets the likes of Kalshi and Polymarket.
Instead of addressing the mess that is their own regulated sports betting option, the Ocean State has chosen to take on two far more superior platforms in Kalshi and Polymarket.
On Thursday, Rhode Island Attorney General Peter F. Neronha announced a lawsuit against Kalshi and Polymarket in Rhode Island Superior Court asking for a declaration that Kalshi’s and Polymarket’s sports-related “event contracts” amount to sports betting that is subject to Rhode Island state gambling laws.
“There is no substantive difference between sports betting and ‘events contracts’ in this context; Kalshi and Polymarket know that, and we know that,” said Attorney General Neronha. “The problem here is that Rhode Island State law heavily regulates gambling, for good reason, and we allege that Kalshi and Polymarket are evading our laws. And Rhode Islanders are losing out. While these private companies continue to profit exponentially off hard-working people, the State’s third largest revenue stream is detrimentally affected, which means less money to fund critical parts of programs that serve Rhode Islanders every day. Further, we allege that these platforms offer those susceptible to problem gambling unfettered access, increasing the potential for the devastating effects of gambling addiction. We demand Kalshi and Polymarket stand down, abide by our state laws, and disgorge their profits, and this lawsuit is the first step towards that goal.”
BetOnline is one of the largest internationally licensed online sportsbooks in the world and has welcomed Rhode Island sports bettors since 1999
Kalshi actually took the first shot.
Rhode Island's suit came immediately after Kalshi filed its own, arguing that regulators had already signaled their intent to pursue enforcement, leaving “little doubt” that action was coming unless Kalshi stopped offering event contracts. In its complaint, Kalshi recalled a May 20 meeting where officials refused to give any assurances.
Indeed they were right.
“When Kalshi sought assurances that the Rhode Island Attorney General did not intend to bring an enforcement action against Kalshi, the Attorney General made clear that Kalshi would not receive any advanced notice before the state filed an enforcement action against the company,” the complaint stated.
The federal judge assigned to oversee Kalshi v. Rhode Island is Mary S. McElroy, who was originally nominated to the federal bench by Barack Obama in 2015. McElroy previously served in the RI Public Defender's Office for 8 years and clerked at RI Supreme Court.
Offshore sportsbooks mostly hold licenses in international jurisdictions that do not prevent them from offering their products for real money wagers elsewhere. A site like BetOnline can take bets from those in Afghanistan for all their regulator cares. Gamblers can be sentenced to death under Taliban rule.
Sites like Kalshi and Polymarket are more exposed in the U.S. as they operate from within the country. They, too, hold licenses. These are granted by the Commodity Futures Trading Commission (CFTC). Furthermore, the prediction market sector is supported by the administration of U.S. President Donald Trump.
Kalshi co-founder Tarek Mansour insists his company is legal to operate in Rhode Island through its CFTC license
There could be some good news finally.
Rhode Island cracked the door open a bit and began accepting new applications for sportsbook licenses last year. A sportsbook operating here has the "pleasure" of getting to keep just 49% of all the sports betting revenue, part of the reason why no other operators are banging down the door.
Besides BallyBet, Rush Street Interactive is the only operator that applied for an online sports gambling license.
BallyBet is the only company that is set to launch its own sports wagering platform in November once IGT’s exclusive deal expire.
On the surface, that might sound like welcome news.....until we delve deeper.
Just how bad is BallyBet?
Here's a taste of the reviews appearing on TrustPilot (with some grammatical errors maintained):
"Belly bet app is scumming new users false advertising no bonus and took forever to get your winings … they hold your money so you can cancel the payout and play again to loss it . You go money to throw away go head ….. guarantee you won’t get your winning $ anytime soon."
"Bally Bet. Ad screams $50 BONUS WHEN YOU DEPOSIT AND WAGER $10!!! Lies!! I placed a $25 wager and won. Took two days of pleading to finally get my payout. Still haven't received any "BONUS BET "
"I couldn’t even get a human to respond to verification."
"Worst experience ever, being directed to submit bets again after the first one actually went through so they can whack ya twice. Here’s a little sneak preview, placed one $250 wager on a tennis match. I submit the slip and it comes back unable to submit, technical issues on there end. Try again in a moment. Well wtf is a moment? I figure a moment is approximately the time it took me to read the alert. So I click it again. Boom it’s in! But it’s in twice, same exact wager with a time stamp apparently 6 seconds apart. (Go figure). So here’s where the real fuckery begins, I reach out to customer service, they seem legit, about customer service and the glitch that happens on their platform. So they start the “investigation” hahaha, I say that loosely. A few minutes later I get a email back from the customer care individual that I was in first contact with."
"i won 300 then i tried to make a withdrawal but they wouldn't let me as soon as I logged in and canceled the withdrawal they closed my account in less than 10 seconds when I call the customer service and ask why they closed my account they say they don't know why they also said I have to wait 72 hours and and it's been more than 72 hours."
Nearly all the five star reviews are one-liners and over-the-top glowing, all seemingly written in October of this past year. Take that for what it's worth.
Lottery figures show online betting generated $26.7 million between last July and March, with the state’s portion amounting to about $13.6 million.
- Alejandro Botticelli, Gambling911.com
