The Rhode Island town of Tiverton wants the Rhode Island Lottery to tell it where it’s going to get the $3.1 million a year it was guaranteed when it agreed to host the Twin River Tiverton Casino Hotel.
The casino is currently closed due to the Covid-19 crisis, but the town points out that if the casino doesn’t make enough to pay the town that the lottery owes it the difference. It is seeking a meeting with lottery officials to talk about this issue.
So far the town has been paid $1.2 million for the fiscal year that ends June 30. It has been trying to get answers from the lottery since last month.
Interim Town Administrator Christopher Cotta told his town council, “It needs to come to a head,” Cotta said of the town getting answers. “It’s very frustrating this late in the fiscal year.” He added, “We’ve got big issues if it doesn’t come through,” Cotta said. “It’s clear in my mind the town should be getting it. A temporary suspension doesn’t qualify in my mind.”
Officials pointed out that the town didn’t have anything to do with the closing. That was an action by the state.
The Town Solicitor Michael Marcello added, “It has to be the town’s position that we expect that $3 million dollars.”
Meanwhile, Twin River World Holdings is dealing with closures but also acquisitions and bragging that it is using its liquidity to keep afloat while its seven casinos are shuttered.
That liquidity enabled it to acquire three casinos at fire sale prices and be positioned to reopen in coming days. It had previously agreed to acquire Isle of Capri Kansas City and Lady Luck Vicksburg from Eldorado Resorts for $230 million. It then also agreed to acquire Eldorado Shreveport and the operations of MontBleu Resort Casino in Nevada for a total of $155 million. These sales enabled Eldorado to settle potential antitrust issues with the FTC involved with its merger with Caesars Entertainment, which was why it agreed to the attractive price.
Its first quarter earnings fell 9.5 percent, despite the fact that in the first two months its revenues rose 23.4 percent. CEO George Papanier commented, “Our company started the year strong. While our full quarter results were meaningfully impacted by the closure of our properties in March, we have taken broad-based actions to reduce expenses and enhance liquidity.”
The enhanced liquidity amounts to about $620 million. Papier said he thought these factors, “will enable us to emerge from this crisis in an even better position.”
When TRWH reopens its properties, it will do so with protocols that call for screening of employees and guests as they enter, facial coverings for all, social distancing, creating spaces between slot machines and closed table games at first. Employees will frequently clean and sanitize all surfaces.
