Here’s a good reason not to wander down the racino path.
But the legions of new gamblers that were supposed to flock to the glitzy slot parlor, rebranded as Twin River and purchased and renovated at a cost of nearly $700 million, never came. Its operators cannot meet heavy debt obligations and have defaulted on the terms of their loans. Bankruptcy threatens.
So to avoid the risk of a closure and the loss of $250 million the slot machines generate annually for state coffers, the state’s politicians are considering ways to keep it open, including a possible purchase – an unprecedented move that would make Rhode Island the first state to own a “racino.” …
“We’re so deep into it,” said John J. Cullen, a Lincoln resident and longtime critic of expanded gambling who nonetheless sees the logic of a state buyout. “The state has become addicted to the revenue source.”
Taxpayer money to bail out a racino, the entire point of which was to generate tax money to fund other priorities. I can think of nothing more hideous.
Let’s just not do this, k?
“I am in blood stepped in so far that should I wade no more, Returning were as tedious as go o’er.” – Act III Scene iv
They get $250M a year from this racino, but it has twice as much debt and then some as that amount. Where is that money coming from? Is it part of the debt?
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p>If that is revenue from slots, why then would RI consider spending as much as $250M to buy the racino and then have to run the thing in perpetuity? If you’re going to spend $250M anyway, just forgive one year of licensing fees so they can restructure their debt and sit back collecting checks. Maybe they just don’t want to set a precedent, but I’d rather not set the precedent of state-run casinos than setting the slot fees to what the market will bear.
There’s a big one in Montreal.
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p>It’s the same problem as with the lotto: If the state runs them, then state has an interest to promote them. Of course this is still true if the state is getting tax revenue from them, but at least they remain divorced from the levers of government.
I mean, seriously. Who goes to crappy Twin Rivers when you can go to Foxwoods? Nobody. Maybe suckers who don’t like quality.
is a fine point about racinos: they can’t compete with “destination casinos.” So really, the notion that racinos are potentially on the table as a bargaining chip — DeLeo gets racinos if the Gov gets a destination casino or three — makes no sense at all. If we’ve got destination casinos in MA, the racinos don’t have a prayer, and will be filing for bankruptcy before the wheels stop spinning.
Suffolk Downs & Wonderland & the other tracks already have the machinery installed to do it once Petrolati makes the committee assignments in the House
I had added this same article as a comment in your older racino post.
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p>Racinos are not creating jobs in any kind of meaningful sense. The argument has always been about generating revenue. Now with the collapse of a racino bordering our state it’s going to be an impossible sell to any reasonable person.
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p>They have to somehow convince skeptics of casinos that Twin Lakes going bankrupt had to do with a bad business model rather than the casino itself, then argue how the MA plan will differ. Good luck with that. Stick a fork in racinos in this state, it’s done.
someone like DeLeo is open to rational thought.
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p>There will be no fork-sticking yet. We need to make sure that enough legislators ‘get it’ to buck DeLeo’s orders.
I never heard of this casino until today, whereas, as a non-gambler, I could leave now, drive for 1 hour, and be at either Foxwoods or Mohegan Sun without even looking up the directions.
was a lousy race track and is now a lousy casino. I wonder what Fred & Steve will do now?
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p>On a more serious note, is the Gov. pushing this due to the threat of the Indian casino, or is he subcumbing to pressure from the Suffolk Downs and Wonderland lobby? I just keep getting a strange feeling that Deval is going to Washington and is going to leave Massachusetts in the lurch. Together we can forget about it!!!!
there are various slot lobbies. Inside the House, the one with the most power has always been the race track lobbies.
10 or 15 years ago it would of made more sense to give the tracks slots, but for several reason business wise and morality wise it doesn’t make any sense now.
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p>I worry about the newer suburban reps like Kate Hogan. Might there be too much pressure from the Speaker perhaps not this bluntly but “vote for the racinos or you can expect larger cuts in your districts local aid”.
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p>Lot of pressure for a new rep.
The dogs may be leaving, but they were never profitable to begin with – at least not in a very, very long time. It was always about trying to get slots at the racinos. Plus, don’t be shocked at all to see some of the pro-track reps try to thwart the will of the voters and reverse, or at least postpone, that vote.
But you are not dealing with reasonable people you are dealing with a a group of bureaucrats who are grasping, consumed with greed, self indulgenet and their only concern is re election. Rhode Island is about to go in default. They are only days away from being unable to pay their unemployment comp. The level of corruption and quid pro quo on Beacon Hill is only surpassed by the US congress who are about to devestate an entire generation with crushing debt. But what do they care. They are spending someone elses money and fiduciary rules and responsibility are no longer applicable. It seems that no laws are applicable to politicians any longer. They do what is good for them!
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p>I’ll bet you $10 at 50:1 odds that RI doesn’t go into default before Feb 15 2009. Want that bet?
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p>Dude, you’re just rambling on about the doomsday coming due to terrible politicians. Turn the record over — maybe there’s a better tune on the other side. Hell, maybe it’s just not broken on the other side.
Hi David:
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p>Your blogger neighbor to the south here, Pat from RIFUTURE. Without jumping in on the merits of what Mass should or shouldn’t do, a few things:
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p>1. Any news story that quotes John Cullen is immediately suspect. He is such crank that no one is Rhode Island takes him seriously.
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p>2. The State has made a series of bad deals with Twin River, which is why they are in hock for the deal now. Also, the Governor promised to let Twin River go 24/7 if they agreed to expand, then reneged on the deal. That is why Twin River is having a debt problem despite the increased revenues. It took the action of some local leaders and the State legislature to at least let them go 24 hours on weekends and holidays.
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p>Not sure if folks have been to Twin River (it is about 3 miles from my house in Lincoln). It is a casino in every way but the table games.
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p>Let me know if you want any more inside news (and avoid John Cullen)
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p>http://www.rifuture.org
What has the impact been since the racetrack became a racino? Have you seen a noticeable difference in the neighborhood? To the local or statewide economy?
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p>Any firsthand insight you could offer would be appreciated.
Excellent info. We’d love to be kept up to speed on this.
Install slots in current and future toll booths in Massachusetts.
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p>FastLane drivers can choose whether to pay the toll, or gamble on getting a free ride by pressing a button on the transponder. A screen reads out the result. Half the takings go to the state, the other half stay in the host town. Winnings automatically have gift taxes deducted from the winnings.