Table games can help Twin River ward off competitors

As Twin River emerges from bankruptcy, Rhode Island native John E. Taylor Jr. will be one of those at the helm of one of the state’s biggest moneymakers. He’s the new chairman of the board of UTGR, the company that operates the Lincoln facility. So what does the future hold for the slot parlor? A sale? Table games? Taylor recently discussed some of those questions with Providence Business News.

PBN: As Twin River leaves bankruptcy protection, will the patrons be affected by this at all?
TAYLOR: I think when a business is in bankruptcy there’s a certain stigma associated with it. I think management has done a tremendous job of operating that property in a difficult market as well as with the stigma attached. We’re hoping that with the emergence from bankruptcy, the property is going to emerge a much stronger kind of business. With that, I think we’ll look at ways we can grow the business. From a board perspective, we haven’t been able to spend a lot of time yet with the management or the folks at the property. When we emerge, we’ll do a complete assessment of the business and look for way to build on the success that the current management team has been able to achieve in a very challenging market.

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PBN: You’ve been working with the lenders for a while so I’m assuming you’re pretty familiar with the business. There must be priorities you’d like to get to.
TAYLOR: I think the management has done a very good job there. So I’m not going to sit here and tell you that I have a list of 10 things I want them to address because I really don’t. We’re going to emerge from bankruptcy and then the board will get to work. I will say that the lenders have done a great job in putting together a board with a good set of competencies that will be additive to the team that’s already in place.

PBN: Much has been made about moves in Massachusetts toward casino gambling and the possible effects on Twin River. How dangerous is this for Twin River? TAYLOR: The property has held its own during a very difficult time. We’re confident that when we emerge, we’re going to be well-positioned to be a successful competitor in the marketplace. We’re showing growth in net terminal income at a time when competitors in the Northeast are experiencing record losses. It’s important to recognize that we’ve done well in a challenging market. But in order to be successful, we also need to recognize that the dynamic is going to change if there is competition in Massachusetts or anywhere else in New England. From my perspective, it’s a question of when not if. In order to continue to be successful, we’re going to need to broaden the product mix to successfully compete.

PBN: Is that a reference to table games?
TAYLOR: Yes.

PBN: Does that mean you’ll be asking the state to approve a ballot question on that?
TAYLOR: We have to ask the legislature to pass a bill and the governor to agree in order to put the question [on] the ballot.

PBN: So that’s something the board will be seeking?
TAYLOR: It’s certainly something we’re going to talk about.

PBN: Do you foresee a way of not getting table games and still being able to maintain Twin River’s performance?
TAYLOR: In order to be successful, in the face of competition from Massachusetts, we’re going to need to be able to compete. If you look at the product offering that was being contemplated in the commonwealth, it was a broad product mix with a relatively low tax rate. In order to compete, we’re going to need the broader product mix ourselves.

PBN: Aside from what you seem to indicate will be an imminent request for a table-games ballot question, is there going to be anything else requested from the state in the way of assistance? TAYLOR: I want to go back to the “imminent request.” I think what we’ll do as a board is that we’ll meet with management, we’ll consider the studies they’ve done on the impact of Massachusetts, and we’ll look at the issue anew.
Personally, I think in order to compete, we’re going to need to do more, but I don’t want to speak for the rest of the board. In terms of what else [might be requested from the state], we’ve been myopically focused on emergence. From there, we’re going to complete an assessment on what else might we need to successfully compete. We’re talking about 900 jobs, the third largest revenue source for the state. Our partner is the taxpayer. We need to be looking at every opportunity we can to continue to grow the business.

PBN: Some experts say the creditors who have now taken over the property will want to sell. Is your job prepping Twin River for a future sale?
TAYLOR: We haven’t engaged in that sort of speculation. Rather, we’ve remained very, very focused on bankruptcy emergence, and the recognition that this is an important asset to the state. We look forward to continuing the positive relationships that have been developed, and to continue to grow the business. While we certainly don’t close off any options for the future, at this time we have no plans to sell the property.

PBN: How does your experience in the Statehouse and at GTECH help you in your new role?
TAYLOR: I’ve spent the better part of my career at the intersection of public policy and gaming. It’s a unique place. Those experiences will be helpful from a gaming-policy perspective, but also as a Rhode Islander. My entire family still lives here. This is an important project for me, and my experiences uniquely qualify me and hopefully contribute in a positive way. •

INTERVIEW
John E.
Taylor Jr.
POSITION: Incoming chairman of UTGR Inc., the corporation that operates Twin River in Lincoln
BACKGROUND: A Pawtucket native, Taylor is president and CEO of GameLogic Inc., an online-gaming company. He started his career as a press aide and then special assistant to Gov. Edward D. DiPrete from 1986 to 1991. He served as vice president at Rhode Island-based GTECH lottery company, and then president and CEO of GTECH subsidiary Dreamport Inc. until 2000. He joined a special venture capital firm called Snow Mark Corp. before his appointment at GameLogic in 2006.
EDUCATION: Bachelor of science in business administration, 1988, Rhode Island College
FIRST JOB: At age 10, he delivered the Evening Bulletin and The Evening Times in Pawtucket
RESIDENCE: Vero Beach, Fla.
AGE: 44