Twin River to buy Newport Grand

THE VIDEO LOTTERY TERMINALS at Newport Grand. Newport Grand and Twin River Casino contribute $1 billion in economic activity in Rhode Island, according to a report released Thursday from the American Gaming Association. / PBN FILE PHOTO/KATE WHITNEY LUCEY
THE VIDEO LOTTERY TERMINALS at Newport Grand. Newport Grand and Twin River Casino contribute $1 billion in economic activity in Rhode Island, according to a report released Thursday from the American Gaming Association. / PBN FILE PHOTO/KATE WHITNEY LUCEY

(Updated 3:18 p.m.) LINCOLN – Subject to regulatory approvals, Twin River’s management group will buy the Newport Grand Casino.
John E. Taylor Jr., chairman of the board of directors of Twin River Worldwide Holdings, parent company of Twin River Management Group and Twin River Casino, made the announcement in a press release Wednesday morning, citing the expected pressures from Massachusetts gaming as a motivator.
Saying it would not seek to offer table games without broad-based community support, the parent company has entered into a purchase agreement, acquiring the interest held by Newport Entertainment and Leisure, LLC, owned by Joseph R. Paolino Jr. and Paul Roiff.
A closing is expected by June 30, if the state Department of Business Regulation and the Division of Lotteries approve, the management group said. The purchase price has not been disclosed.
“We understand how important the future of Newport Grand is to the state and when the acquisition opportunity presented itself, believed that we might be best qualified to preserve and possibly enhance that revenue and protect valuable jobs,” Taylor said in a statement.
He added that there are “synergies” the prospective owners can tap into between the larger and smaller casino including cost efficiencies, technical integrations and marketing that could help maximize future revenues.
Newport residents rejected table games at the Newport Grand at referendum in the 2012 and 2014 general elections, and Taylor said management would not seek to counter that in 2016.
“We are well aware of the fact that the Newport community is not now in favor of any expansion of gaming at Newport Grand and may never be,” he said. “While we believe that would aid considerably in the property’s long term ability to compete in an increasingly challenging gaming marketplace, we will respect the wishes of the community.”
Paolino, speaking on behalf of himself and Roiff, said the development will best serve the interests of the state.
“Our interest in owning Newport Grand was superseded only by the desire to protect an important economic generator for the state and to save and protect the jobs of the hard working people employed there,” he said. “Because of our commitment to keep local ownership, we felt that Twin River would be best suited for the job, especially since they agreed not to go back to the people of Newport for another table game vote.”
Newport Grand employs about 175 people and generates $26 million annually in revenue for the state.
Referring to Massachusetts gaming, Taylor noted that as many as four destination casinos could develop there, including one targeted by the Mashpee Wampanoag Tribe in Taunton. The state also could award its third license in the southeastern zone as early as May, he said.
Twin River Worldwide Holdings, Inc. also owns the Hard Rock Hotel and Casino in Biloxi, Miss., and Arapahoe Park, a horse racetrack outside of Denver, Colo., which includes multiple off-track-betting licenses in the state.
Gov. Gina M. Raimondo said in a statement that she looks forward to learning more about the proposal.

“We have a projected $200 million budget deficit this year – in addition, we are under-investing in building skills, attracting businesses and strengthening our infrastructure. Due to anticipated gaming competition from our neighbors, our budget challenges are projected to worsen in the years ahead.

“We need to examine ways to remain competitive. Twin River has been an important corporate citizen. Its proposed purchase of Newport Grand may help reverse the trend of declining revenues from the Aquidneck Island gaming facility,” Raimondo said.

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