While future ownership of Twin River is in question, you wouldn’t know it from the packed gaming floors on many nights this summer. It’s been “business as usual” at the Lincoln slot parlor, according to Patti Doyle, spokesperson for BLB Investors LLC, the company that operates the popular entertainment venue.
According to Joe Weinert Sr., vice president of Spectrum Gaming Group, an independent gaming research firm based in Linwood, N.J., most gambling venues on the East Coast experienced a decline in revenue during fiscal 2008. “Locally, casinos haven’t been hit as hard as in Atlantic City or Las Vegas. In fact, revenue at Twin River in Lincoln has been slightly better. Over the past three months Twin River has been up 3.2 percent,” he said.
“Twin River is bucking the national trend with respect to increased revenue chiefly because [we] offer a terrific gaming venue, coupled with first- class dining, and lots of exciting shows and comedy acts. We also believe we are benefiting from Rhode Islanders who choose to stay closer to home for their gaming rather than travel to Connecticut casinos,” Doyle said.
Twin River racked up $435 million in revenue last year, good for No.11 on Providence Business News’ 2009 list of the Top Private Companies in the state.
The entertainment facility, formerly known as Lincoln Park, was founded in 1947 as a horseracing track and transformed into a year-round greyhound racing track in 1977. Since then, however, the popularity of greyhound racing has declined sharply.
In 2005, a year after video lottery terminals were added, BLB purchased the gaming-enterprise facility from Wembley PLC. In 2007, BLB embarked on a lavish renovation of the facility, adding an extra 130,000 square feet to the structure, as well as the addition of a 160,000-square-foot gaming area. Improvements included the addition of a two-story, glass atrium, new entrance with Porte cochere sails designed in Budapest, valet parking, and improved mechanical/electrical systems such as surveillance systems and new air conditioning. Restaurants and food courts were also added. The project racked up more than 1,000,000 man-hours over a 24-month period.
“The owners of Twin River spent $225 million to renovate and upgrade the former Lincoln Park into what we know now as Twin River. They spent more than originally envisioned because they wished to showcase a first-class gaming and entertainment venue. They have done just that,” Doyle said.
The extensive renovation project was designed to attract patrons from Rhode Island and Massachusetts (including Worcester County). Revenue from the gambling venue was expected to increase by 20 percent and bring additional jobs to Rhode Island.
The new gaming center has 4,752 slot machines, including both classic favorites as well as the latest slot machine games in a 300,000-square-foot gaming area. While these renovations dramatically improved the facility’s appearance, the timing couldn’t have been worse financially. Doyle said a combination of negative economic events have impacted the “racino.”
“The economic downturn, national banking problems and the credit crunch acted like ‘the perfect storm’ and forced investors to file for Chapter 11 bankruptcy in June. Since that time Twin River has worked hard to regain its financial strength and the company hopes to re-emerge stronger,” Doyle said.
Under the agreement Twin River struck with its creditors, the owner’s debt was to be reduced by nearly $200 million. “That debt does not go away, but rather will get absorbed or attached to the purchase price when creditors place Twin River on the market,” Doyle said.
The plan, however, included allowing round-the-clock video lottery terminal (VLT) gambling. Gov. Donald L. Carcieri has vetoed legislation that would allow that because the bill also included a provision requiring the facility to nearly double the days that greyhound racing takes place.
Twin River owners have suspended greyhound racing, and hope to work out a deal in court to at least cut what it spends to host greyhound racing, if not end it entirely.
Round-the-clock VLT gambling is considered crucial to Twin River’s emergence from bankruptcy as a going concern, something that the state has a vested interest in, given the roughly $250 million the VLTs return to state coffers each year.
According to Carcieri spokeswoman Amy Kempe, the governor’s veto “was strictly a business decision. Dog tracks don’t do well anymore and are no longer financially viable. The races are losing money handle and purse,” Kempe said.
Jennifer Bramley, a spokesperson for members of the Rhode Island Greyhound Owners Association, disagrees with the governor’s decision. Bramley said the dog owners had an agreement with BLB before any of the Chapter 11 proceedings began. It was transferred with ownership when BLB bought it from Wembley. “BLB has a $10 million contract with the greyhound owners and we are hoping the Senate and House override the governor’s decision in September [when lawmakers are expected to return from recess],” Bramley said.
Twin River loses approximately $10.5 million annually from greyhound racing. The figure includes the $9 million subsidy it is required to pay annually to the kennel owners – most of whom live out of state – as well as another $1.5 million in operational expenses. Doyle said greyhound racing is simply no longer financially feasible at Twin River, though the facility is required by the General Assembly to host races.
Last month 27 race track employees were laid off, and if the track is eventually closed, it will mean another 225 employees will lose their jobs. “This is people’s livelihoods. Rhode Island has an unemployment rate of 12.5 percent, one of the highest in the United States. There are only a million people in this state so that will have a significant impact,” Bramley said.
Bramley insists the race track attracts 5,000 people a day who also generate revenue eating and drinking.
The future of dog racing aside, the complex has a host of other attractions that bring in the crowds. Restaurants including Fred & Steve’s Steakhouse, Fado Irish Pub with authentic Irish food, Blackstone’s Cigar/Martini bar, Sandbar, a lounge located in the center of the gaming action, and the newest addition; the Sunset Bar located just outside Market Square. Combined, they offer a variety of cuisine and ambience. There are also food courts that offer quick bites with places including KFC, Dunkin’ Donuts, Subway and Johnny Rockets.
The Rising Star Comedy Club has a regular lineup of comedians as well as a popular open-mike night. The Lighthouse offers free live music, including rock, jazz, blues, funk and reggae bands; and the Event Center hosts entertainers and performers including the Isley Brothers, Wayne Newton and the Goo Goo Dolls. In August the B52’s, Air Supply and the Doobie Brothers top the list of acts. The center also hosts boxing matches and is available for trade shows.
With so much going on in and around the facility, Twin River sells itself as a “stay and play” destination. Special packages include accommodations at the Hampton Suites in Smithfield and the Providence Marriott. Guests can also enjoy an evening at Waterfire in Providence, local golf courses, shopping and the South County beaches. •
