State might be asked to make up any shortfall, Taylor tells Assembly

TIVERTON — Legislation pending in the General Assembly "assures Tiverton that a minimum of $3 million annually from gaming revenue will be there for the Town’s fiscal planning purposes.”

So said John Taylor, chairman of Twin River Worldwide Holdings in Tuesday testimony to the House Finance Committee.

"We think that it’s reasonable that Town would like the predictability of a minimum payment given the highly uncertain gaming landscape in the region," Mr. Taylor said.

Mr.Taylor was testifying on behalf of H-7228, a proposal that would authorize the construction of a casino in Tiverton.

"Known as the Tiverton casino bill," Mr. Taylor said, "this legislation provides the vehicle for a state and local referendum - the latest and probably most important piece of legislation we have ever introduced in our strategy to deal with increased competition in the northeast."

"If approved, it will allow voters to weigh in on a simple but important question – do you favor a casino in Tiverton," he said. "If the answer is yes, Newport Grand will close once a new casino is built, the soonest being mid-2018. As has been the case with past gaming issues, the question must pass statewide, as well as within the town."

The casino, Mr. Taylor has said in presentations to the town, would be 80,000 square feet in size, two stories high, and would accommodate 1,000 to 1,100 slot machines and 25-35 table games.

An accompanying hotel, Mr. Taylor has said, would have 80 rooms, be 50,000 square feet in size, and be "not taller than three stories." There would be surface parking for 1,200 -1,300 cars.

"As you now know," Mr. Taylor told members of the Finance Committee, "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."

An additional inducement was also identified. "Another critical element of the program is that the Town shares in 1 (one) percent of Table Game revenues, a segment growing in popularity. To this end, both Twin River and the state of Rhode Island will each reduce by half a percentage point the revenue it garners from table games, effective when the casino in Tiverton opens." he said.

"A safety net for Tiverton is warranted given the tremendous uncertainty about what Massachusetts may do in awarding the final commercial casino license," Mr. Taylor said.

A Tiverton casino near the Massachusetts border, Mr. Taylor said, "is projected to contribute a minimum of $47 million annually to State coffers, to a possible maximum state share of $70 million if it is the only casino in the region to come on line. Even in the most challenging Massachusetts environment, it is projected to earn more money – nearly double - for the State than Newport Grand presently does. Its convenient highway access, proximity to a larger pool of prospective customers, and full complement of gaming and entertainment amenities makes it a game changer and a potential competitive force in the marketplace."

Twin River Worldwide Holdings is the parent company to Twin River Management Group, owners of Twin River Casino and Newport Grand in Rhode Island, the Hard Rock Hotel and Casino in Biloxi, Mississippi, and Arapahoe Park in Aurora, Colorado.