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Update: Lottery director OKs 24-hour gambling at Twin River

10:38 AM Wed, Nov 04, 2009 |
Katherine Gregg    Email

PROVIDENCE, R.I. -- State Lottery Director Gerald Aubin has approved 24-hour gambling, seven days a week at the Twin River greyhound track-and-slot parlor.

Convinced the state Lottery has the authority to extend the hours on its own without legislative approval, Aubin, in an interview Wednesday, said he was moving ahead to generate millions of extra dollars for the state and the bankrupt Lincoln gambling hall.

Twin River spokeswoman Patti Doyle said round-the-clock gambling could begin within 10 to 14 days, with some juggling initially of existing employees between shifts and then, potentially, some "additional gaming personnel and/or additional shifts. ''

The Lottery is a division of the state Department of Administration, headed by Gary Sasse.

In an interview on Wednesday morning, Sasse acknowledged concern about the state's ever-increasing dependence on gambling revenue to finance routine state government operations. But he said the "die was cast'' when the legislature a year ago gave Twin River permission to stay open through the night on weekends and holidays.

Sasse said the leap from all-night gambling on weekends to all-night gambling every day of the week amounts to 30 hours a week which he called "de minimus.''

In the budget they approved for this year, Sasse said, state lawmakers included upwards of $10 million in assumed revenue from all-night gambling, of which $3 million to $4 million was solely attributable to the move to seven days a week. As to why the Carcieri administration waited until now to act, he said, a decision was made to wait to see what the legislature did when it returned to wrap-up the legislative session that ended abruptly in June, with a promise to return soon.

As it turned out, the lawmakers did not return for their two-day special wrapup session until last week when they took steps to increase the town of Lincoln's share of the video-slot revenue, but no further steps to increase the hours of operation at the slot parlor.

With that being the case, Sasse said, the administration felt compelled by a need for the revenue and the consensual bankruptcy agreement it reached with Twin River and its lenders last June to approve the round-the-clock gambling on its own.

Twin River has been allowed for more than a year to stay open all night on weekends and the overnight hours before holidays. State lawmakers approved legislation in late June that would have allowed all-night gambling, every night, at the Lincoln gambling hall.

Carcieri vetoed the legislation after the lawmakers attached a provision that would have forced the slot parlor's financially struggling owners - who by then had already filed for protection from their creditors in U.S. Bankruptcy Court - to drop their plans to discontinue live greyhound racing in August, and run a full 200-day season instead.

In his veto message to lawmakers, Carcieri had no major quarrel with the move to overnight gambling. But he said dog racing had become increasingly unprofitable, the $9-million annual operating subsidy Twin River's owners had been paying the greyhound owners had contributed to their "crippling debt," and that the legislature's intervention threatened to scuttle the consensual bankruptcy agreement Twin River's owners filed in bankruptcy court in late June, at a potential cost to the state of millions of dollars.

Extra: Read a copy of Aubin's letter authorizing 24-hour gambling.

Extra: Warner withdraws bid for Twin River

(An earlier version of this report was published at 10:38 a.m.)

The agreement spelled out a timeline for Twin River's owners to eventually surrender the Lincoln complex to their lenders, led by Merrill Lynch Capital, who would then be free to bring in a new operator. The agreement hinged, in part, on the state's approval of round-the-clock gambling.

Though Aubin said he clearly has the authority as state Lottery director to authorize all-night gambling on his own, as he has earlier extensions in the slot parlor's operating hours, he said he held off taking any action in the initial months after Twin River's June bankruptcy filing to let the situation stabilize.

The state has not yet approved - and the lenders have not yet brought in - a new manager for the facility. But, Aubin said: "Everything has been stabilized. Everyone feels comfortable with the situation at Twin River, and [we] realize there is a lot of revenue that can be generated as a result'' of all-night gambling.

From Twin River's point of view, Doyle said: "The ability to stay open 24/7 helps the facility move forward toward a successful restructuring and provides opportunity for all stakeholders to increase revenue. For that reason, we support it.''

While Twin River is home to more than 4,750 video-slot machines placed there by the state Lottery, the state gets to keep roughly 61 cents out of every dollar the players leave behind.

During the year that ended on June 30, that translated into $242.3 million for the state, $110.3 for Twin River's owners, $27,771,040 for the machine providers, another $9.9 million for the Providence-based GTECH as the central-system operator, $5.7 million for the town of Lincoln and $674,130 for the Narragansett Indian Tribe, which has no role in Twin River's operation or ownership.

The current hours of operation are 9 a.m. to 3 a.m. Monday through Thursday, and round-the-clock on weekends and holidays. But Doyle said "we stop serving alcohol between 12:30 - 12:45 a.m,'' and that will continue.

The state's only other slot parlor - Newport Grand - has not asked permission to stay open round-the-clock, seven days a week.

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Comments

Biagio said:

What RI Constitution?

We've finally made it to gov't by fiat....

Anyone concerned that Aubin is overstepping his authority?

What next?

Wake up RI!!!



Lincolnite said:

Doesn't anyone recall the constituents of Lincoln voted against 24/7! Aubin has overstepped his authority and should be held accountable.



Gerry said:

How many more times do I have to be almost hit head-on in that damn rotary? I'm at 4 already and counting! The jerks come west on Twin River
Rd off 146 and just bang a left straight into the lot rather than going 3/4 around to the right like they're supposed to. Us locals travelling east on Twin River on our way home from where ever risk our lives every day trying to navigate through there. Move the whole dump to the state house lawn and bring some life back to downtown. That's what you want anyway, isn't it?



sgrant said:

I can't believe that a State worker has overruled the voting citizens. Why bother voting any longer? Our votes clearly mean nothing!



Joe D said:

What a state, thanks Aubin. This is unbelievable!



henry baptista said:

it figures, it figures, it figures they have wanted this all along. the hell with the indians and the lincoln tax payers



DD said:

Do they think that's going to save that place. Fools grasping at straws... The place is doomed.



geno said:

ya'll knew this was comming
1 we broke
2 weekend gamble 24
3 dogs gone
4 24/7
now see how fast we recover



Tom Letourneau said:

Has anyone bothered to check with the Town of Lincoln Officials, and the citizens that live in and around this facility, to see if they want to have this kind of activity 24/7/365??

And, wait a week or two and Twin River will also have 24-hour around the clock Booze Availability so that now all of the DRUNKS that now have to leave establishments that are following the law will have a place to go in order to get further plastered and then drive home!




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