Twin River Worldwide Holdings, a parent company to the Lincoln and Tiverton’s Twin River Casinos in Rhodes Island, has opposed the deal, through an ad campaign, signed between a gambling machine manufacturer, IGT and Rhodes Islands state. Providence Journal has reported.
The ad published yesterday, July 7th, 2019, went on to show that the $1 billion deal that was signed intended to last for 20 years was bad for both the state and the gambling industry. The deal signed also, did not see any bid take place which makes the company voice its concerns.
IGT to provide 85% of gambling machines
Gov. Gina Raimondo secured the deal last month and the deal still needs to go through the House and Senate to be approved and the vote is expected to be taken this fall. If the deal is approved by the houses, it will see IGT retain the rights to operate the traditional lottery games and will go ahead to provide the two Rhode Island’s casinos with 85% of the gambling machines. The casinos in question are Twin River Lincoln and Twin River Tiverton.
The terms of the 20-year-deal, the manufacturer will be expected to pay $25 Million to Rhode Island and they will also need to employ 1,100 people from the state. The manufacturer has also agreed to invest $150 Million in Rhode Island through the time the deal covers and will still upgrade the state’s digital lottery system, the two casinos slot machines and provide free updates.
The company’s Vice President Marc Crisafulli said ahead of the campaign that the taxpayers were to be terrified about the deal citing the potential revenue of $10 Billion from the state’s gambling sector was at risk. He cited the lack of a bidding process, zero competition, the deal being rushed and the deal itself, which according to him did not make any business sense.
IGT takes the last position in gambling money
The Vice President also noted that among the three companies that provided gambling machines to the two Twin River casinos in Rhode Island, last year results showed IGT take the last position in the competition for gambling money. He said that each IGT machine in the two casinos netted $258 per day which yielded $94,000 in the year. The state took $56,000 and for Everi, another manufacturer, they would net $303 per machine and yielded $101,000 with the state having a share of $66,000. Scientific Games, on the other hand, had their machine netting $401 a day and yielded $146,000 with the state taking $87,000.
In the ad, Twin River claims the government ‘side stepped’ the state purchasing law and that the deal is not in the interest of the state’s taxpayers. The ad closes by stating, ‘…we will share with you our concerns and further explain why it is a bad idea.’
Crisafulli further stated that the deal would ‘harm the state gambling industry’s potential to compete in the regional market.’ The market has seen the entry of three casinos in Massachusetts and there is the talk of a new one coming in anytime. There is also word on a third casino coming up in Connecticut.
The Vice president concludes by saying the deal, ‘Does not help us to compete … it’s a burden that makes us less competitive.’