The Rhode Island General Assembly has approved amended legislation to reinforce the state’s agreement with IGT and Bally’s Corporation.
The legislation (2021-H 5223A, 2021-S 0040A), introduced by House Speaker K Joseph Shekarchi and Senate President Dominick J Ruggerio, represents an economic development investment of more than $250m for the Ocean State’s third-largest source of revenue, income from the state’s two casinos (Twin River Casino in Lincoln and Tiverton Casino Hotel) and its lottery.
Lawmakers supported both companies retaining their positions. IGT will remain as the state’s lottery technology provider, while Bally’s will keep possession of the state’s casino market and will also receive a larger revenue share.
Speaker K Joseph Shekarchi (D-Dist. 23, Warwick) commented: “The legislation increases revenue to our state and preserves critical jobs. Along with the Senate, we have taken several steps to enhance the legislation on behalf of the taxpayers. I thank Senate President Ruggerio, who played a critical role in bringing the two companies together.”
Senate President Ruggerio (D-Dist. 4, North Providence, Providence) added: “The Senate Finance Committee undertook an exhaustive review of this proposal and developed legislation that protects more than 1,000 jobs, guarantees significant capital investment, and preserves the state’s third-largest revenue stream.
“I am grateful to Speaker Shekarchi for working to enhance the proposal to further benefit the state, and to IGT and Bally’s for their continued partnership and investment in our state.”
At the request of House and Senate leadership, key changes were added to the legislation’s amended version including:
- The upfront payment to the state will increase from $25m to $27m.
- Bally’s will accelerate job creation at its corporate headquarters and will meet the 30 new jobs requirement as outlined in the legislation by December 31, 2022.
- Bally’s will increase its commitment to the I-195 Commission for park renaming rights to $250,000 in the first year, $150,000 in the second year, and $100,000 thereafter, for a total increased commitment of $200,000.
- The IGT financial commitment has increased from $150m to $155m.
- The footprint for Bally’s commercial space in Providence has increased from 12,000 square feet to 20,000 square feet.
- Increased liquidated damages for any missed jobs count from $6,400 to $7,500 per job for both companies.
- The commitment to problem gambling was increased from a minimum of $125,000 to a minimum of $200,000.
IGT and Bally’s have agreed to raise the minimum wage for its Rhode Island employees despite it not being contained in the legislation. It will rise to $13 per hour by January 1, 2022; $14 per hour in 2023; and $15 per hour in 2024. Each of those changes occurs a year ahead of statewide minimum wage increases.
Bally’s has also agreed to open an additional Rhode Island office, outside Providence, to hire a minimum of 30 information technology professionals. Additionally, IGT’s commitment to a STEM scholarship fund in Rhode Island schools will be increased from $25,000 to $35,000 per year.
The bill also includes the following components, which have been part of the bill since it was first introduced in January:
- IGT will add 100 new jobs, increasing the minimum number of jobs from 1,000 to 1,100.
- The aggregate payroll must now equate to 250% of minimum wage. At a $15 minimum wage, the total guaranteed payroll would be $85m per year.
- It provides a penalty against IGT for failure to meet employment levels.
- Bally’s will add 30 new jobs, with the same requirements and penalties as IGT.
- Bally’s will invest $100m, including a 50,000 square foot expansion to its facility in Lincoln.
- IGT and Bally’s must maintain headquarters in Providence through 2043.
- The two companies will make various investments that will result in the creation of a joint venture with IGT having a controlling 60% stake in the new company and Twin River owning the remaining 40%. The joint venture will be a licensed VLT provider and supply the entirety of the gaming machines to the Lottery. IGT-manufactured machines and multiple other manufacturers will supply the floor that will continue to be managed by an efficiency rating system.
- A minimum annual replacement cycle will be set at 6% with the flexibility to replace up to 8% in any year.
- At least 5% of the VLTs will be the highly popular premium machines to keep the gaming offering on par with regional competitors.
The Rhode Island Division of Lotteries will continue to maintain regulation of all gaming, with all aspects of the lottery and gaming programs to remain state-operated.
In addition, the amended legislation has been named the Marc A Crisafulli Economic Development Act to honour the Executive VP of Bally’s, who is battling cancer.
