Slots Casino in Rhode Island in Financial Danger
Casinos and gambling revenues have been used around the U.S. to rescue state budgets facing a funding shortage. But now, with discretionary spending drying up and financing all but impossible to find, the question becomes: who rescues the rescuers?
Rhode Island receives over $250 million in taxes from the Twin River slot parlor annually. But, according to a national credit rating service, Twin River faces a likelihood of bankruptcy.
The state is itself already in a quandary with budget shortages. It can neither spend money salvaging Twin River nor make do without the income provided by the racino.
A few alternatives have been suggested by state officials. Opening the state's casinos, including the Newport Grand location, to table games may draw a clientele presently headed to Foxwoods and Mohegan Sun in Connecticut.
The dog track portion of the business costs more than it returns, and allowing Twin River to close that part of the operation may help bolster the casino. However, this move could have the opposite effect of the inclusion of table games, driving away business attracted by versatility.
Certainly, there is still viability in running a slots monopoly. If UTGR Inc., the present operator, can't turn a profit or meet its rosy projections from last year, then perhaps another company can. Rhode Island needs it.
