Prominent gaming machines innovator, International Game Technology (IGT), has reportedly inked a deal that could soon see it establish a joint Rhode Island venture in partnership with local casino operator Twin River Worldwide Holdings Incorporated.
According to a Thursday report from The Providence Journal newspaper, the pair had been at odds over IGT’s attempt to secure a 20-year contract extension that would have given it the right to supply almost all of the small state’s slot needs. It currently provides about half of the around 5,000 gaming machines operated by the two casinos in Rhode Island and had been seeking an arrangement that was to see this facility upped by about 35% until at least the end of 2043.
The Providence Journal reported that Twin River Worldwide Holdings Incorporated is responsible for Rhode Island’s Twin River Casino Hotel and Tiverton Casino Hotel and had objected to the IGT proposal, which received official backing from Democratic Governor Gina Raimond in June, over concerns that it did not represent good value for money and would further exclude fellow slot providers Everi Holdings Incorporated and Scientific Games Corporation.
However, it now reportedly seems that the two have put their considerable differences aside after unveiling a plan that is to involve the establishment of a joint venture that will subsequently seek to secure the controversial contract extension first floated by London-headquartered IGT. In exchange and the newspaper detailed that the enterprise has promised to pay $25 million in licensing fees and invest some $150 million in upgrades as well as approximately $100 million to renovate the ageing Twin River Casino Hotel.
IGT envisions holding a 60% share in the as-yet-unnamed joint venture with the remaining stake controlled by Twin River Worldwide Holdings Incorporated. The former firm purportedly explained that securing the Rhode Island contract extension would see it maintain some 1,100 jobs in ‘The Ocean State’ while the latter is said to have pronounced that such an agreement will result in its construction of a new 12,000 sq ft Providence headquarters.
Regarding the proposed facelift for his firm’s Lincoln casino and Marc Crisafulli, Executive Vice-President for Twin River Worldwide Holdings Incorporated, proclaimed that the project envisions adding around 40,000 sq ft of gaming space as well as a 14,000 sq ft spa complete with a dedicated entrance. He purportedly stated that the scheme would additionally further separate the property’s smoking and smoke-free areas and swap a second-floor slots area for a new entertainment concept.
Reportedly read a statement from Crisafulli…
“We all recognize the New England gaming landscape has changed significantly in just the last short five years and our players have more choices. It is crucial that not only the gaming floor in Rhode Island be as vibrant and content-driven as our competitors but that the wider range of amenities also meet our customers’ expectations. Both the state and IGT indicated that substantial investment in the facility would be helpful and we heard them loud and clear.”