Rhode Island Casino A Surprising Deal From IGT & Twin River
International Game Technology (IGT) and Twin River have come together after long standing disputes between one another.
The two companies are now the biggest in the Rhode Island gambling industry with Thursday afternoon's agreement, according the to the Providence Journal. The plan is for a $100 million renovation and expansion at the Lincoln area Twin River casino.
On top of that, a new headquarters would open in the city of Providence with roughly 12,000 square feet of space.
The proposal is in place and if it indeed goes through the process with the state, gambling boards and lawmakers are next to look at it. Twin River is set to become simply a casino operating company, to a company that now has video slot machines. That is big in terms of revenue heading out of state with those video slot machine suppliers and makers.
What Partnership Means for Rhode Island
IGT is going to make out a large way in this deal, as they’ll take over as a 60% shareholder of this merged company. Twin River is going to have a 40% stake.
Also, perhaps the most intriguing benefit of everything for IGT is the goal of reaching a 20-year contract from the state gambling regulators. With Twin River now out of the picture, and on its side in this agreement, it makes it easier to obtain.
According to the Providence Journal, IGT will keep seeking General Assembly approval of legislation by authorizing the governor to extend the contract to 2043. That is all in line with them pledging to 1,100 jobs, $150 million of investments in upgrading facilities and paying license fees of $25 million while Twin River pays $6.5 million now.
The Twin River Worldwide Holdings official website posted a statement saying it wishes "to ensure that the gaming floor and its slot machines continue to drive over $300 million a year to the State, minimize the risk of systems and technology conversions and overall, enhance Rhode Island's gaming competitiveness with Massachusetts and Connecticut."
More important, the Rhode Island Division of Lotteries will maintain oversight and regulation of all gaming. What will be state operated are the aspects of the lottery and gaming programs.
"This announcement signals the start of a strong three way partnership that includes not just the two companies, but the State of Rhode Island as well," IGT Global Services chairman Robert K. Vincent said. "Importantly, it will harness the strongest attributes of each company to better serve Rhode Island taxpayers, to preserve valuable jobs and to make meaningful infrastructure improvements at the gambling facilities. We appreciate the active involvement of the Executive and Legislative branches of government for encouraging both organizations to work together in such a unique and highly effective manner."
All in all in Rhode Island, the two companies decided it was smarter to work together than to continue to fight for a deal. This should open up a lot for IGT and Twin River.