A renegotiated 20-year contract between the state of Rhode Island and IGT and its partner Bally’s to operate the state’s lottery, has been presented to the legislature.
Lawmakers who didn’t think that the contract negotiated by former Governor Gina Raimondo benefited the state as much as it could, had insisted on new negotiations.
The new negotiations were backed by House Speaker Joe Shekarchi and Senate President Dominick Ruggerio.
The newly crafted deal between IGT, Bally’s Corp. (formerly Twin River) and the R.I. Lottery was revealed May 4.
The 20-year contract would put IGT and Bally’s in charge of the lottery, which also oversees the two casinos owned by Bally’s that operate in Lincoln and Tiverton. They would be paid about $1 billion over two decades but the state would continue to get a percentage, estimated at least $300 million.
According to Speaker Shekarchi, “The legislation increases revenue to our state and preserves critical jobs.” Ruggerio added, “The Senate Finance Committee undertook an exhaustive review of this proposal and developed legislation that protects more than 1,000 jobs, guarantees significant capital investment, and preserves the state’s third largest revenue stream.”
Governor Daniel McKee said during a press conference on May 4 that he supports the new deal.
Besides being paid $1 billion, Bally’s and IGT are obligated to keep 1,100 jobs in the state as well as create 30 new jobs at a “corporate headquarters.”
Bally’s commits to spending $100 million on an expansion of its Twin River casino in Lincoln.
Two years ago there was a much different reaction to Raimondo’s proposed agreement. At that time IGT and Bally were on opposite sides. Bally spent millions lobbying the legislature to prevent IGT from getting the deal to operate the lottery by itself. Bally (then Twin River) said it wouldn’t fair for one of the companies it buys its slot machines from to also oversee the state’s casinos. It also criticized Raimondo for sidestepping a competitive bidding process.
Later IGT and Bally joined forces to make an offer to the state.
Gaming has been the state’s third largest revenue source for many years.
