Rhode Island’s House Finance Committee is going to review an updated version of a gambling contract between the Rhode Island Lottery, IGT, and Bally’s Corp tomorrow. The updated contract proposes the creation of new workplaces and is expected to bring the state approximately $300 million annually.
RI Lawmakers to Review an Updated Gambling Contract
An updated version of a gambling contract between the Rhode Island Lottery, IGT, and Bally’s Corp is going to be reviewed by the House Finance Committee in the state on Thursday this week. The updated contract was announced yesterday and it sets a 20-year contract between the involved parties.
Senate President Dominick Ruggerio, who recently spoke to WPRI, said that following an “exhausting review“, the new proposal aims at protecting 1,000 jobs in Rhode Island. Furthermore, he stressed that the contract guarantees significant capital investment, and “preserves the state’s third largest revenue stream“.
Under the gambling contract, the state’s gambling industry is going to be run by IGT and Bally’s. Furthermore, the duo would be responsible for the two state-owned casinos, located in Tiverton and Lincoln. Although no official price tag is set for the gambling contract, Rhode Island is expected to receive approximately $300 million annually.
The Updated Contract Sets Additional Conditions for Bally’s
The updated contract proposal changes state upfront payment from $25 million to $27 million. Furthermore, under the amended version of the contract, Bally’s will need to create 30 new jobs at its corporate headquarters in Providence. Bally’s commitment to the I-195 Commission for park renaming rights increases by $200,000. Furthermore, the company is expected to expand the Lincoln property by 50,000 square feet, which may cost the company some $100 million.
In a statement, Elizabeth Suever, vice president of government relations at Bally’s, said that the gaming floor will be expanded by 40,000 square feet. Additionally, the company will invest in a 10,000 square foot spa and an upgrade to dining facilities. According to Suever during the 12-14 months of construction, approximately 20 construction trades will be involved. Last but not least, she revealed that the project can easily start in two months after the legislation passes.
IGT to Create More Workplaces
Similar to Bally’s, the updated proposal sets additional conditions for IGT. The company’s financial commitment is increased from $150 million to $155 million. Furthermore, the company is expected to create 100 new workplaces. Additionally, missed job penalties have been increased from $6,400 to $7,500 per job. The minimum commitment for tackling problem gambling was also increased from $125,000 to a minimum of $200,000.
IGT’s chief operating officer, Jay Gendron, said that if this legislation is passed, IGT will be able to keep its 1,000 good-paying jobs in the state. Furthermore, he added that through the new contract, IGT will be able to increase its workforce by 100 people. This, according to him, will “ensure that the machines continue to drive over $300 million” each year for Rhode Island.