Dept. of Revenue urges R.I. lawmakers to continue state lottery contract with IGT
By: Ellie Romano
Email: ERomano@ABC6.com
Twitter: @ERomanoABC6
PROVIDENCE, R.I. (WLNE) – Two companies are competing for control of Rhode Island’s lottery.
IGT has run the state lottery since 2003. The company’s contract is up in 2023. Lawmakers have to decide whether to extend their partnership for another 20 years, or open the contract up to bidders to see what other companies bring to the table.
The Senate Finance Committee held its first hearing on the issue on Thursday night.
“Our goals are to be transparent, comprehensive, and participatory,” said committee Chairperson William Conley.
Representatives from the Department of Revenue as well as the Director of the Division of Lottery were brought in to testify in front of the committee. They urged the senators to continue a contract with IGT.
But some senators are interested in seeing what other companies are out there.
“Typically competitive bidding provides the best value to the taxpayer,” said Vice Chairperson Louis DiPalma.
Despite no bidding currently in the works, Twin River and Camelot announced a proposal of its own.
“We’re looking for a commitment of $500 million less than IGT. We only have a 12-year term as opposed to their 20 [year],” said President of Twin River Rhode Island Operations, Marc Crisafulli.
IGT has said that if the contract is not extended, Rhode Island will lose out on 1,100 jobs.
But Crisafulli said Twin River and Camelot, the company that runs the lottery in two states and Ireland, said that they can guarantee those jobs will be safe, and even give preference to employees at IGT affected by the transition.
Representatives with the Dept. of Revenue told lawmakers at the committee hearing it would be risky for the state to open the lottery to bidders, arguing the General Assembly would lose control of the process because they don’t know what the other companies would offer.
The head of legal services for the Dept. of Revenue said a bidding process could take more than three years, and be expensive.
“I don’t necessarily agree that it’s going to take 3 ½ years,” said Sen. DiPalma. “From an RFP perspective, we know what we need and we know what we want.”
Representatives with the Dept. of Revenue also warned lawmakers that if they decide to look at other bidders, IGT might lose interest and move its headquarters out of Rhode Island.
The next Senate Finance Meeting on the issue will be October 1st. The House Finance Committee will take up the issue on Tuesday. The Governor is expected to be there for that hearing.
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