"Casino in R.I. is facing bankruptcy; Governor asks nonstop hours at Twin River" by Eric Moskowitz, Globe Staff | June 24, 2009
With the Twin River slots-and-racing parlor, one of Rhode Island’s top revenue producers, unable to pay its creditors and entering bankruptcy, Governor Donald L. Carcieri called yesterday for even more gambling.
Get a GOOD LOOK, Massachusetts.
Related: Rhode Island First State to Bail Out Casinos
That is what you will have to look forward to.
To help the Lincoln, R.I., gaming emporium stay afloat, Carcieri plans to allow Twin River to operate 24 hours a day, seven days a week, and to let the so-called racino drop greyhound racing, a financially losing proposition otherwise required by state law. Twin River is currently open 24 hours on weekends, but closes at 3 a.m. during the week.
Not a good idea: Connecticut Casinos Kill
Maybe Rhode Island could learn from them, huh?
Twin River’s troubles reverberate on Beacon Hill, where the effort to legalize gambling in Massachusetts gained momentum this spring and where lawmakers in the House and Senate are preparing for a full debate in the fall.
In a clear sign of Rhode Island’s reliance on gambling revenue, Carcieri scheduled a press conference yesterday in Providence immediately after Twin River’s owners filed for Chapter 11 reorganization across town in federal bankruptcy court.
Sort of like an ADDICT, 'eh?
That consensual filing, an agreement hashed out with Twin River’s lenders and the state, absolves the developers of nearly half of their roughly $590 million in debt, but hands over ownership to the creditors.
Where is YOUR ABSOLUTION, unemployed and foreclosed-upon Americans?
By allowing Twin River to remain open, the agreement, which must be approved by a bankruptcy judge, would allow the gambling salon to continue to feed the state $20 million or more a month, a guaranteed share of house winnings that proved too rich for Twin River’s developers to sustain while also making their debt payments.
I REALLY, REALLY hope you Mass. readers are taking this all in.
The group, known as BLB Investors LLC, spent $470 million in 2005 to acquire the seedy Lincoln Greyhound Park and another $220 million to overhaul it as Twin River, borrowing the bulk of that money....
I'm so sick of everything coming back to debt-inducing banks, aren't you?
Twin River has had financial trouble since early last year. The state allowed the facility to open 24 hours a day on weekends last year, despite objections of town residents in a Lincoln referendum. The governor’s 24/7 plan immediately drew local opposition.
“It will impact the residents of that part of town,’’ said Ronald A. McKenna, president of the Lincoln Town Council. “They already objected to the weekend 24 hours. This will just make their situation worse. But obviously the governor has his mind all made up, and damn be the residents of Lincoln, as long as the state of Rhode Island gets what they want.’’
It's the same in every state.
Edward M. Mazze, a professor and former business school dean at the University of Rhode Island, said Twin River’s reorganization does not mean state-sanctioned gambling cannot succeed in New England. Instead, it is a reminder that a state can become reliant on gambling revenue and that a balance must be struck between government and developer, said Mazze, citing Twin River’s overinvestment in “bells and whistles’’ and its steep guarantee to the state.
Hey, you PAYING ATTENTION, Massachusetts?
Rhode Island takes about 61.5 percent of house winnings at Twin River. By comparison, resort casinos and slot parlors proposed in Massachusetts by Governor Deval Patrick and Treasurer Timothy Cahill, respectively, would contribute 27 percent of winnings to the state.
Oh, so we would be getting a lot less back.
This is going to be a LOSER for you, Massachusetts -- with casino profits moving out of state to who knows where (although I have a pretty good idea)?
That makes Twin River singlehandedly Rhode Island’s third-largest revenue stream, after income and sales taxes. And in a state with a 12.1 percent May unemployment rate, it employs 441 full-time and 357 part-time workers.
“The fact of the matter is, we’re stuck,’’ Mazze said, referring to Rhode Island. “We don’t see other revenue sources coming in, and we’re going to fight hard to protect something that everybody is apparently against.’’
That is government all over.
Even as Carcieri called for added hours and maintained the state’s position on its winnings collections, he distanced himself from casinos. “I’m not a big fan of gambling, because I do not think it is economic development,’’ the governor said.
“We have it; it’s here,’’ he said at the press conference. “My job is to do the best we can to protect it and keep the taxpayers healthy.’’
Well, choose one (he already did) because the state bailout is not helping taxpayers.
BLB is a partnership that includes Sol Kerzner and Len Wolman, the resort and gaming magnates who developed Mohegan Sun in Connecticut and are in the investors in a proposed Mashpee Wampanoag casino in Middleborough, Mass.
There they are again!!
Related: Wampanoags Welch Out on Casino Deal
Looks as if the naive Native Americans have lost some of the trust, 'eh?
The Chapter 11 filing affects only the Rhode Island venture, said Patti Doyle, a BLB spokeswoman, who called it “the best possible outcome for the state of Rhode Island and for Twin River patrons.’’
The filed agreement would allow BLB to reduce its debt to $300 million and continue operating Twin River, while its creditors, led by Merrill Lynch Capital Corp., would assume ownership and could seek new operators.Oh, Wall Street's Merrill Lynch is owed the money, huh?
Yeah, state can't stiff them.
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They still have a dog track, too.
"R.I. bill forces racing at struggling dog track" by Ray Henry, Associated Press | June 27, 2009
PROVIDENCE - The Rhode Island House voted yesterday to force a financially struggling gambling hall to expand its schedule of greyhound races, even as its owners and Governor Donald L. Carcieri seek to end the money-losing races and protect millions of dollars in state income from its slot machines.
The bill approved by a 60-11 vote requires Twin River in Lincoln to host 200 days of greyhound racing instead of the current 125 days. It also permits the racetrack to allow gambling around-the-clock....
This as we are getting rid of the races.
“We commend our lawmakers for choosing to protect jobs and taxpayer revenue rather than lining the pockets of the big banks,’’ said Jennifer Bramley, a spokeswoman for the Rhode Island Greyhound Owners Association, which warned that ending the races would cost more than 200 jobs.
They are still paying the banks! WTF?
UTGR Inc., the owner of Twin River, sought Chapter 11 bankruptcy protection this week as it struggles to repay more than a half-billion dollars in debt. As part of a deal with Carcieri’s administration, it wanted legislative permission to end greyhound racing, which the company says loses $10.5 million annually.
If a bankruptcy settlement cannot be reached, it could endanger $238 million in income the cash-strapped state expects to get from slot machines at Lincoln Park. While bettors wagered about $150 million on greyhound races in 1990, that sum has dropped to around $13 million, according to state records.
Carcieri will veto the legislation when it arrives on his desk, said his spokeswoman, Amy Kempe.
“It’s an outdated form of gambling and it’s a drain on the facility,’’ Kempe said.
Carcieri’s administration earlier warned the legislation could turn a structured bankruptcy settlement into a “protracted, free-all proceeding’’ and cause millions of dollars in lost revenue for the state. As a pressure tactic, Senate lawmakers refused to vote on a $7.8 billion state budget plan until bill supporters saw movement on the greyhound racing bill, among other issues.
Some might call that legislative extortion.
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And there off!
Greyhounds raced last month at Twin River in Lincoln, R.I. The track’s owner has filed for Chapter 11 bankruptcy protection. (Stew Milne/Associated Press)
"R.I. legislators, governor tangle over greyhound racing; Lawmakers try to force expansion" by Eric Turner, Associated Press | July 13, 2009
LINCOLN, R.I. - Greyhound tracks are folding across the country, but in cash-strapped Rhode Island - where the unemployment rate is among the nation’s worst - lawmakers are betting on the dogs to save jobs.
And down goes the ticket to the cement floor; another losing bet.
Rhode Island legislators are fighting to expand greyhound racing, an increasingly outdated and unprofitable sport that has been squeezed out by newer forms of gambling. Over the objection of Governor Don Carcieri, lawmakers have moved to force a bankrupt, state-licensed slot parlor to run 200 days of live racing at its greyhound track even though the law requires only 125.
Carcieri, a Republican, vetoed the legislation. But lawmakers in the Democrat-dominated General Assembly say they expect to override it. Supporters say it’s necessary to save 225 jobs (including parimutuel clerks, bartenders, and security workers), to preserve tax revenue, and to retain the 5,000 people who visit the track each week. They also argue that the public shouldn’t be penalized for what they say are the bad business decisions of the owners of the gambling parlor, called Twin River.
“I did not want to see more people out of work,’’ said Senator Frank Ciccone III, the bill’s sponsor. “My compassion is with the poor people who are trying to make a living than with the multimillionaires who overinvested and tried to take more money out.’’
The move bucks a national trend away from greyhound racing. Last year, Massachusetts voters passed a ballot question banning greyhound racing amid allegations the dogs were mistreated; a pro-dog racing group wants to contest that referendum.
So when is the will of the voters actually going to be respected around here?
And New Hampshire’s two remaining greyhound tracks won state permission last month to end live racing after waning interest from bettors.
About 30 tracks remain nationwide, down from a peak of about 55 in the early 1990s, said Gary Guccione, executive director of National Greyhound Association, a Kansas-based group.
“There has been a downsizing,’’ he said. “It started when the lotteries really started expanding and when the casinos were getting a foothold in different parts of the country.’’
Twin River’s owner, UTGR Inc., filed for Chapter 11 bankruptcy protection last month, unable to repay more than a half-billion dollars in debt taken on during massive renovations.
The Carcieri administration supports an end to live racing, saying live wagering on the sport has declined from $150 million in 1990 to $13 million. Twin River moved to suspend racing earlier this year and sought legislative permission to get rid of the sport as part of a bankruptcy restructuring deal with Carcieri’s administration.
“The governor has said all along: ‘Get rid of the dogs. It doesn’t make financial sense to continue dog racing,’ ’’ said Amy Kempe, Carcieri spokeswoman.
Instead, lawmakers voted to expand the required number of annual racing days, though the track usually operates about 200 days on its own, said Jennifer Bramley, a spokeswoman for the Rhode Island Greyhound Owners Association.How come government always does the opposite of what you want, America?
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"Fate of R.I. dog racing uncertain" by Associated Press | August 9, 2009
PROVIDENCE - Twin River’s final scheduled greyhound races for 2009 went off yesterday, but the races may not be the last ones this year at the bankrupt slot parlor.
Twin River filed for bankruptcy protection in June and is seeking to permanently end greyhound racing. But Rhode Island lawmakers are fighting to run 200 days of live racing at the track even though current law requires only 125.
Governor Don Carcieri vetoed the legislation that would extend the live racing days, but lawmakers in the Democratic-majority General Assembly have said they expect to override it when they return in September. Supporters of the bill say it’s needed to save the jobs of 225 workers at the track, preserve tax revenue, and retain the 5,000 people a week who visit the track.
Jennifer Bramley, spokeswoman for the Rhode Island Greyhound Owners Association, said it’s in Twin River’s best interest to keep greyhound racing going in the coming weeks.
“The kennels are staying in place and we are hopeful the Senate and House come in September and override the governor’s veto,’’ Bramley said.
Patti Doyle, spokeswoman for Twin River, has said the slot parlor loses $10.5 million a year from greyhound racing. The bankruptcy filing was made as Twin River’s owners struggled to repay $500 million in debt.
Dog racing has “been a losing proposition for many, many years. It’s not an area of the business that we can sustain,’’ Doyle said. “We’re going to see it come to an end for this year, but there’s a lot that needs to be decided in terms of the future of greyhound racing.’’
Carcieri has supported ending greyhound racing because it doesn’t make financial sense, said Amy Kempe, administration spokeswoman. “It’s certainly not the only thing that caused the financial problems at Twin River, but it certainly didn’t help,’’ Kempe said.Yeah, let's watch the dog track lose more money, say the state legislators.
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Related: Wonderland Loses Its Luster
Last Race at Raynham
