As per the state’s bill, two Rhode Island gaming properties will continue to receive at least $3 million per year from the state government even if the casinos ever plan to shut down.
The legislation plans to reserve the state money flowing to the government coffers Lincoln and Tiverton. The payments would come even if casino operators plan to close their premises for the majority of the time for the entire fiscal year.
Rep. John G. Edwards. introduced the legislation (2021-H 6355). Edward acts as Majority Floor Manager of the state House of Representatives. There are many co-sponsor of the state bill. The bill was sent to the House Finance Committee for review.
In his region, Edwards tried explaining legislation by commenting, “Last year, during the pandemic, Tiverton did not receive their full stipend due to the closing of the casino, and the amount due [to] them was not addressed in a prorated manner.”
As per the current law, casinos for a certain day then state the risk of losing taxes. Edward claims that the legislation plans to close these loopholes.
He further explains the bill is desperately needed Lincoln and Tiverton regularly encounter losses in t taxes incurred by the casinos. Edward believes that the losses should be compensated.
Last year due to Covid-19 restriction, Tiverton Casino Hotel and River Casino Hotel shut down their operations between March 13th and June 8th. During November both casinos had to stop their operation for the second time. The casinos reopened with limited capacity in December.
The estimated Gross Gaming Revenue for Tiverton was $3.1 million from the state once the gaming venue was functioning for the entire fiscal year as per the reports of Providence Journal. But the state official considers that the funding by the state is not valid because of the pandemic-related shuttering.
Edward informed the Journal that the two casinos were open for the 3 quarters of the current financial year. Tiverton was supposed to earn a sufficient amount of money, the revenue generated by Tiverton was $2.3 million.
Covid-19 Restriction Relaxed
The previous month, the two Rhode Island casinos eased their rule of wearing a face mask for vaccinated guests.
Guests are not required to present any documentation to prove their vaccination status. Plexiglass earlier used on the table games are also removed from the casino floors.
Safety checks like temperature and ID scans were also discontinued by casino officials.
The two casinos are owned by Bally’s corporation in Rhode Island. Caesars Entertainment completed Bally’s Atlantic City sale to Rhode Island-based Bally’s Corporation which previously was Twin River Worldwide Holdings.
The deal provided the company with ten casinos and racetracks in the United States market.
Twin River was later globally named as Bally Corporation on November 9. Now the company is listed on the New York Stock Exchange as Bally’s corporation.
Bally’s corporation has two divisions, Bally’s casinos include brick and mortar gaming and entertainment venues and second is Bally’s interactive which recently acquired Bet.Works.