A bill that would give Rhode Island voters statewide the power to approve of a million in Tiverton is being mulled by the House Finance Committee, which held hearings on it last week.
The proposal would allow Twin River Management Group to move its current casino from Newport to the border community of Tiverton, where it would be more effective at keeping the state’s gamblers from crossing into Massachusetts to play at their new casinos.
Lawmakers were concerned about whether the new casino would be viable, or whether the New England gaming market is already oversaturated.
“What would you attribute to the less than stellar performance of the current competitor that just opened up? Do you think that could happen to us?” asked Rep. Carlos Tobon.
John E. Taylor Jr., chairman of the management group, said that was unlikely. He noted that the casino in question, Plainridge, has not been doing well in its head to head competition with Rhode Island casinos, which are both run by Twin River. His casinos know how to compete for the “convenience” player, he said.
He predicts that the state’s share of revenue from the new casino will range from $47 million, if casinos open in Brockton and Taunton, to $70 million, if neither opens. The state, which relies on casino revenues as its third largest source, would collect 61 percent from video lottery terminal revenues, and 15.5 percent of table game revenues. The town of Tiverton would be paid $3 million annual, or about 10 percent of its annual budget.
Twin River anticipates opening a casino in the middle of 2018 if both the voters of the state and Tiverton approve of the measure.
