Rhode Island leaders say they’re confident that a recent bid by Providence-based Bally’s Corp. to build a $1.6 billion “flagship” casino in Chicago won’t sidetrack the company from its role operating two casinos here that are crucial revenue generators for the state.
The lawmakers behind a deal passed in June to give Bally’s and International Game Technology PLC exclusive control over the Ocean State’s gambling operations for the next two decades said a major investment by Bally’s in the Windy City could only be good for the casinos in Lincoln and Tiverton.
Bally’s recently reported a $14.7 million loss in the third quarter as the company undergoes a massive transformation, driven by acquisitions of casinos and online gaming platforms.
“As a global company, they naturally will pursue growth outside of our state as well, and a strong and growing corporate gaming partner is good for Rhode Island,” said Senate President Dominick J. Ruggerio. “Strong protections are in place to ensure that Rhode Islanders continue to reap the benefits of our strong partnership with the company for decades to come.”
Ruggerio’s counterpart in the House agreed. “Bally’s success in other parts of the country is truly Rhode Island’s success as well,” House Speaker K. Joseph Shekarchi said in an emailed statement.
The Providence-based company has amassed a portfolio of 14 casinos across 10 states, access to online sports betting markets in 16 states and acquisitions of online gaming firms including the recent multibillion dollar purchase of Gamesys Group PLC.
On Oct. 29 came Bally’s proposal to build a $1.6 billion casino project in Chicago.
Elizabeth Suever, vice president of government relations for Bally’s, said the 20-year agreement passed by Rhode Island lawmakers in June “assures” that the casino and online gambling company will remain a “vital and significant part” of the state’s economy for “decades to come.”
Rhode Island’s legal gambling operations represent the state’s third-largest source of revenue, bringing in $357.3 million in fiscal 2021, when revenue was reduced by the COVID-19 pandemic. Bally’s employs about 1,800 people in the state, including staff at Bally’s Twin River Casino in Lincoln and Bally’s Tiverton, along with executives and office workers at Bally’s corporate headquarters in Providence.
“Bally’s commitment to Rhode Island remains as strong as ever, perhaps more so,” Suever said. “The success of Bally’s in other jurisdictions translates into success for Rhode Island, as many of our employees here are serving the company as a whole, not simply one property.”
Shekarchi said Bally’s is also planning an additional job site in Rhode Island, which Suever confirmed. Details are slated to be announced this year. Under an agreement with the state, Bally’s is obligated to maintain a Providence headquarters until 2043, increase its commercial footprint in the city to 20,000 square feet and add 30 new senior positions.
The company also committed to a $100 million, 50,000-square-foot expansion at the casino in Lincoln.
Paul DeBole, a professor of political science at Lasell University in Newton, Mass., who has studied the New England gambling industry, said it isn’t yet clear if Bally’s play at Chicago and its other acquisitions will pay off for the company and for Rhode Island as a stakeholder. But DeBole said he likes the odds.
“I think they’re gambling heavily on developing their portfolio of properties, to where they will offer a sufficient number of promos and travel opportunities to get local players to enjoy some of their other properties nationwide,” DeBole said. “It seems like a recipe for success.”
Marc Larocque is a PBN staff writer. Contact him at Larocque@PBN.com.
