Projo 7 to 7 News Blog

PROVIDENCE, R.I. -- Twin River's owners have put the state on notice they will have to start pulling the plug on overnight gambling on weekends and holidays if they are not given a definitive signal, by June 1, that lawmakers -- or the Carcieri administration -- is willing to extend the deadline they were given a year ago.

In a letter delivered to the head of Rhode Island's Department of Revenue on Monday, Twin River senior vice president and legal counsel Craig Eaton wrote: "The legislation is due to sunset as of June 30, 2009 and, as a result, we will be legally prohibited from maintaining the current hours of operations. We are therefore preparing to reduce hours and resume the 2 a.m. closing beginning July 1, 2009.''

He said Twin River hopes the state acts before then, and even suggested the Department of Revenue -- headed by Gary Sasse, who doubles as Governor Carcieri's director of the Department of Administration -- could permanently extend the hours beyond July 1 on its own, without need of legislative action.

There was no immediate response from key lawmakers to the letter, dispatched by Twin River less than a week after the owners of the financially struggling greyhound track and slot parlor served notice they intend to suspend live dog-racing on Aug. 8.

But Sasse said 24-hour gambling on weekends and holiday eves - known at the State House as "24/3''- has "proven to be in the financial interest of the state...[so] if the General Assembly does not extend the authority to continue 24/3, we are prepared to do it administratively.''

Eaton warned that inaction would place in jeopardy an estimated $12.5 million in state slot revenue, netted during the overnight hours when Twin River is currently allowed to stay open on Friday and Saturday nights, and holiday evenings. But lawmakers cannot wait until the final hours of the legislative session, as they do for most of their key decision-making.

In his letter, Eaton said: "In order to comply with certain provisions in our collective bargaining agreements we will need to be advised by June 1, 2009 of DOR's decision... Unless informed otherwise, we will continue preparations for the change in hours in accordance with an anticipated sunset of the legislation.''

Twin River is owned and operated by UTGR Inc., a subsidiary of BLB Investors -- the holding company comprising Kerzner International Limited, Starwood Capital Group and Waterford Group LLC. The company bought the aging Lincoln Park dog track in 2005, along with three greyhound racetracks and a horse track in Colorado, and then embarked on a $225-million renovation and expansion in Lincoln.

Twin River has been struggling to keep its lenders and other creditors at bay since March 2008, when it defaulted on a series of loans to buy and renovate the former Lincoln Park.

 Tags  Lincoln RI Twin River

Comments

Greg said:

"Running a Business 101"

A.) What are the gambling and food service receipts during the weekend overnight hours? AKA: INCOME

B.) What are the charges involved with the weekend overnight hours? (payroll, power/lights, maintenance, etc) AKA: EXPENSES

So long as A > B, keep her going. If A

Gary Sasse says it's "in the financial interest of the State" to keep the overnight hours. That could mean that incomes are greater than expenses... but in Rhode Island, you never know.

I'd be curious to see the numbers.

VERY curious.

Link | May 11, 2009 4:26 PM
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