Twin River: 18% gaming share adds up for R.I.

The new North Entrance of Twin River with an entertainment center, restaurants, slot machines, among other amenities. / COURTESY TWIN RIVER
The new North Entrance of Twin River with an entertainment center, restaurants, slot machines, among other amenities. / COURTESY TWIN RIVER

Do the numbers add up?
Twin River says yes, after legislation introduced in the Statehouse last week outlined that Rhode Island would get 18 percent of the revenue table games there would generate if voters approve full-fledged gambling this November.
“We thought the voters should have full access to the facts [so] that we can delve deeper into the conversation,” Twin River spokesperson Patti Doyle said. “We see this proposal as a fair effort to reach a common ground.”
The 18 percent revenue share would be on top of the continued approximately 61 percent of slot-machine revenue the state receives from Twin River in Lincoln, according to Doyle.
Twin River says adding its desired 65 table games would bring in approximately $60 million. The state would get 18 percent, or $10.8 million annually. Factoring in a projected slot-machine revenue increase of $20 million, of which the state would see $12.3 million, allowing table games at Twin River, the company said, would give the state roughly $23.1 million annually.
Newport Grand Slots, which also stands to gain full-gaming rights pending the Nov. 6 ballot vote, also would give the state 18 percent of its table-gaming revenue.
The two facilities, which are promoting, along with supporters, the need to keep up in what they say is a two-state race in the gaming business, are hoping transparency will win them confidence during their campaign.
“That was always very important to us,” Doyle said. “We see this as a positive beginning in working toward an agreement with the state that is in the best interest of all parties involved.”
The legislation, sponsored by Finance Chairman Helio Melo, D-East Providence, in the House and Majority Whip Maryellen Goodwin, D-Providence, in the Senate, comes just as nearby communities in Massachusetts have started making their feelings about casinos known at the polls.
Massachusetts Gov. Deval Patrick earlier this year enacted legislation that would allow for up to three casino facilities there.
Voters in Freetown last week overwhelmingly rejected, 954-308 with 22 percent of voters registered voters responding, a nonbinding referendum on the Wampanoag Tribe of Gay Head Aquinnah’s proposed $167 million casino off Route 140.
Lakeville, Mass. voters were scheduled to have their say June 2. Rhode Island could stand to lose, according to various reports, anywhere from $80 million to $200 million in revenue if it fails to keep up with competing facilities. In fiscal 2011, the state received $300 million from its two gaming facilities.
A recent report from the University of Massachusetts Dartmouth’s Center for Policy Analysis showed that Massachusetts residents made up 51 percent of Twin River’s yearly visits and about 44 percent of those at Newport Grand.
“[The legislation] appears to be a product of thoughtful deliberations and understanding of the expected runoff of Rhode Island residents into neighboring casinos,” said Laurie White, president of the Greater Providence Chamber of Commerce, which is publicly supporting the Twin River referendum.
Rhode Island voters in 2006 soundly defeated a referendum question on behalf of the Narragansett Indian Tribe to support changing the state constitution to allow a tribal casino.
The state constitution bars private casinos.
The tribe had partnered with Harrah’s Entertainment and said at the time that 25 percent of its revenue would be handed over to the state.
“I can tell you this. I don’t know how many years, we would sit down and point out what the state would get and what tribe would get,” Chief Sachem Matthew Thomas said. “My concern … [is that] no one is saying there’s any constitutional issue. When it was the tribe and Harrah’s, there were issues.”
The legislation also provides state regulatory-enforcement provisions, including problem gambling services and video-surveillance requirements.
Lincoln and Newport governments would not get any percentage of table-game revenue.
However, Lincoln’s share of slot-machine revenue would change from a renewable share to locked at its current 1.45 percent. Newport would go from getting 1.01 percent of slot machine revenue to 1.45 percent as well.
Doyle said that at Twin River, table gaming would increase machine-game revenue by 4 percent, which would mean an extra $12.3 million.
The legislation would hold Newport Grand to an 18 percent state revenue share but would allow for Twin River’s rate to be lowered to 16 percent if that facility suffers a “sustained drop” in revenue.
Diane S. Hurley, CEO of Newport Grand, did not immediately return calls. •

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