Tiverton casino legislation clears House hurdle

Posted 3/3/16

State Senate approval expected; Governor after that

STATE HOUSE – The House of Representatives and a Senate committee Wednesday approved legislation necessary to allow Twin River to transfer its operations at Newport Grand to a new facility in …

This item is available in full to subscribers.

Please log in to continue

Log in

Register to post events


If you'd like to post an event to our calendar, you can create a free account by clicking here.

Note that free accounts do not have access to our subscriber-only content.

Day pass subscribers

Are you a day pass subscriber who needs to log in? Click here to continue.


Tiverton casino legislation clears House hurdle

Posted

State Senate approval expected; Governor after that

STATE HOUSE – The House of Representatives and a Senate committee Wednesday approved legislation necessary to allow Twin River to transfer its operations at Newport Grand to a new facility in Tiverton, pending approval from voters statewide and in Tiverton.

The legislation, which is expected to come before the Senate today, would put questions on the ballot in November statewide and locally in Tiverton asking voters to approve a gaming facility in that town. Both would have to pass for the move to occur.

The proposal is aimed at protecting a major revenue source for the state in the face of competition from newly authorized casino gambling in nearby Massachusetts.

“This legislation is about protecting our state’s third-largest revenue source. We can’t allow our gaming facilities to be left behind when newer, bigger facilities open in Massachusetts. Remaining competitive is critical to this industry, and the state has a significant stake in its success. The new facility in Tiverton will keep Rhode Island dollars in Rhode Island, and could bring in money from out-of-staters as well,” said House Majority Leader John J. DeSimone (D-Dist. 5, Providence, who is sponsoring the bill in the House.

That bill (2016-H 7228A) passed the House Wednesday on a 69-4 vote, and will be forwarded to the Senate.

Earlier yesterday afternoon, the Senate Committee on Special Legislation and Veterans’ Affairs voted 7-0 to approve the Senate version of the bill (2016-S 2081A), sponsored by Senate Majority Whip Maryellen Goodwin (D-Dist. 1, Providence). That bill is also expected to come to the Senate floor Thursday.

“Twin River has worked openly and cooperatively with state and local leaders to create a proposal to help the facility thrive and continue to generate revenue that supports our state and the host community. This legislation will allow them to carry it out, with voters’ support. The revenue generated by our state’s two gaming facilities is a critical component of our state budget, allowing us to fund education, social services, infrastructure and more, so allowing Twin River to stay competitive makes a difference in the lives of regular Rhode Islanders, even those who never set foot in either facility,” said Majority Whip Goodwin.

Twin River purchased Newport Grand last year and announced its plans to transfer its gaming licenses to a new facility it wishes to build at the intersection of William S. Canning Boulevard and Stafford Road in Tiverton. Newport voters have rejected allowing the slots parlor to add table games to its VLTs, and the new facility very close to the state line would better position Twin River to keep gaming dollars in Rhode Island as new casinos are built in Massachusetts.

Should the ballot questions win approval, the legislation would establish that the state would get 15.5 percent of table games and 61 percent of video lottery terminal (VLT) revenues at both the new Tiverton location and Twin River’s original location in Lincoln.

It also establishes that the host communities of both facilities — Lincoln and Tiverton — keep 1 percent of table game revenue and 1.45 percent of VLT revenue. The bill guarantees the host communities will each receive at least $3 million annually, with any shortfalls being made up out of the state’s share.

The earmark for Tiverton in the legislation would ensure the $3 million annually in gaming revenues to the Town of Tiverton.

"As you now know," Twin River CEO John Taylor told members of the House Finance Committee recently, "if gaming revenue to the Town should fall below $3 million in any given state fiscal year, we’re asking our partner, the State, to make up the possible shortfall. We think that’s reasonable given our acquisition of Newport Grand and the initial investment of approximately $75 million we will make to develop and construct the casino and adjoining hotel."

This is borne out by language in the proposed legislation, to the effect that "if the Town of Tiverton has not received an aggregate of three million dollars ($3,000,000)" ... then the state shall make up such shortfall to the Town of Tiverton out of the state's percentage of net table game revenue."

The legislation also transfers many of the responsibilities for oversight of gaming facilities’ operation from the Department of Business Regulation to the state Lottery Division.

The Senate bill is cosponsored by Sen. Walter S. Felag Jr. (D-Dist. 10, Warren, Bristol, Tiverton), Sen. Ryan W. Pearson (D-Dist. 19, Cumberland, Lincoln) and Sen. John A. Pagliarini Jr. (R-Dist. 11, Portsmouth, Bristol, Tiverton).

Tiverton casino

2024 by East Bay Media Group

Barrington · Bristol · East Providence · Little Compton · Portsmouth · Tiverton · Warren · Westport
Meet our staff
Jim McGaw

A lifelong Portsmouth resident, Jim graduated from Portsmouth High School in 1982 and earned a journalism degree from the University of Rhode Island in 1986. He's worked two different stints at East Bay Newspapers, for a total of 18 years with the company so far. When not running all over town bringing you the news from Portsmouth, Jim listens to lots and lots and lots of music, watches obscure silent films from the '20s and usually has three books going at once. He also loves to cook crazy New Orleans dishes for his wife of 25 years, Michelle, and their two sons, Jake and Max.