The Rhode Island Lottery sent cease-and-desist letters to six online betting operators last week. BetUS, BetOnline, MyBookie, WildCasino, YouWager and Bovada all received notices. These sites currently offer traditional sports betting to Rhode Island residents without proper state authorisation.
All six operators run standard sportsbooks. None of them offer prediction market products right now.
The state’s Department of Revenue oversees the lottery. They requested the action after watching prediction markets grow across the US. Rhode Island Attorney General Peter Neronha then ordered the state police to investigate these gambling operators.
Why Rhode Island Decided to Act Now
The timing isn’t random. Prediction markets have exploded in popularity recently, with major operators forming new partnerships. FanDuel teamed up with derivatives marketplace CME Group in August to develop “fully funded, event-based contracts with defined risk.” Around the same time, Underdog Fantasy announced plans to work with Crypto.com on contract trading.
These developments caught regulators’ attention nationwide. Rhode Island saw operators offering betting services without going through proper licensing channels. The state decided it was time to enforce its gambling laws more strictly.
But here’s the thing – the six operators hit with cease-and-desist letters don’t even offer prediction markets. They run traditional sportsbooks. The state appears to be using the prediction market boom as a catalyst to crack down on all unauthorised betting operations.
What Rhode Island’s Gambling Rules Actually Allow
Rhode Island has pretty restrictive gambling laws compared to other states. Only one sports betting app can legally operate there right now.
International Game Technology (IGT) manages that lone authorised application under a contract signed with the state. The deal gives Rhode Island half of all revenue generated. That contract expires in November 2026, which is just over a year away.
No other operators have state approval to offer betting services to Rhode Island residents. That makes the six sites receiving cease-and-desist letters completely unlicensed in the state’s eyes.
Evolution Gaming did recently partner with Bally’s Corporation on July 3. That deal officially established Evolution’s presence in Rhode Island and expanded Bally’s content offerings throughout the state. But that partnership focuses on casino gaming, not sports betting.
How This Changes Rhode Island’s Betting Market
The cease-and-desist letters signal tougher enforcement ahead. Other unlicensed operators should probably expect similar action if they’re serving Rhode Island customers.
IGT’s exclusive contract ending next year creates an interesting situation. The state might open up more licenses when that deal expires. Or they could extend IGT’s monopoly.
Either way, Rhode Island isn’t tolerating unauthorised operators anymore. The state police investigation could lead to additional penalties beyond just the cease-and-desist letters. That investigation is ongoing.
Other states watching prediction markets grow might follow Rhode Island’s lead. Expect more regulatory scrutiny across the US as these betting products gain traction.
