PROVIDENCE, R.I. (AP) – Rhode Island has reached an agreement to extend the contract of the company running its lottery systems and sports betting.
Democratic Gov. Gina Raimondo and legislative leaders announced the terms Thursday, but the new contract still has to be executed. “Rhode Island’s partnership with IGT over the past two decades has led to the creation of a thousand local jobs and hundreds of millions in economic activity,” said Governor Raimondo. “Today’s announcement ensures the company can continue to grow and thrive in our state while providing Rhode Islanders with some of the highest-quality games anywhere in the country. This innovative agreement keeps Rhode Island – and Rhode Island’s jobs – at the center of this modern and evolving industry.”
In exchange for a share of lottery profits, IGT will pay the state $25 million, make $150 million in capital investments over the next 20 years and keep at least 1,100 permanent jobs in Rhode Island.
IGT will also maintain its corporate office in downtown Providence and bring its iLottery products to Rhode Island.
Legislative leaders introduced legislation Thursday to codify the agreement into law. “IGT is one of Rhode Island’s most valued corporate partners, and I want them to continue to call Rhode Island home for decades to come,” said Speaker Mattiello. “This new agreement increases the company’s investment and guarantees great jobs stay in our state. I am committed to a full public vetting of this proposal and the House will hold hearings in the fall.”
“I am grateful to Governor Raimondo for her work to keep IGT headquartered in Rhode Island,” said Senate President Ruggerio. “IGT is a major Rhode Island employer, with about 1,000 jobs averaging $100,000 in salary presently, and the number of Rhode Island jobs is anticipated to increase under this proposal. Since it is close to the end of the regular legislative session, I intend to introduce the legislation today so it is available for public inspection over the next few months, then return for a special session in the fall to thoroughly review and analyze the bill through the committee process before it is considered.”
The contact was set to expire in 2023. It would’ve taken years to switch to a new contractor if the state wanted to.
Twin River, owner of Rhode Island’s two casinos, said the agreement was “unprecedented” and should’ve been bid on competitively. “We question the timing of this no-bid, billion dollar, 20-year contract,” said Patti Doyle, spokesperson for Twin River. “To give one gaming company monopoly control of the machines on the casino floor is unprecedented in the industry and is significantly harming Rhode Island taxpayers. If this contract was competitively bid, we believe the upfront payment amount to the State for these gaming rights would exceed $100 million dollars. Without a doubt, this contract strays far beyond industry norms.”
