Senate Committee set for hearings on RI IGT contract

More punches continue to fly in the war between two gaming giants over the state’s lottery contract, as the Senate Finance Committee is set to begin a series of hearings Thursday afternoon.

Lawmakers are considering whether or not the legislation, sponsored by Senate President Dominick Ruggerio and Sen. Maryellen Goodwin on, to give a 20-year contract extension worth $1 billion to IGT is best for the state.

Opponents believe there should be an open bid for the contract, including Twin River, who announced a partnership with the UK company Camelot looking to win the contract if lawmakers choose to go that route.

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 I-G-T. 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.

“We are putting up a $100 million guarantee to back the 1100 jobs,” he said.

A series of hearings is set to be held in the Senate and House Finance Committees. 

Sen. William Conley is chairman of the Senate Finance Committee who said that he hasn’t taken sides on the issue, as the hearings will flush everything out, including how the current contract is playing out and what details are in the legislation that will extend a contract with IGT until 2043.

“Bring a little transparency to this process. That’s one of the concerns that we’ve heard from the public. Be comprehensive. Make sure you look at every nook and cranny that exists in the legislation,” Conley said. “Process that will give everybody a full and fair opportunity.”

Josh Block, a spokesman with Gov. Raimondo released the following statement in regards to twin River and Camelot’s plan.

“The proposal before the General Assembly protects 1,100 Rhode Island jobs, secures $150 million in local investment and guarantees Rhode Islanders have access to state-of-the-art gaming technology for the next two decades,” Block said in a statement. “Twin River’s focus should be on staying competitive in the evolving casino landscape to prevent further loss of jobs and revenue. This is nothing more than 11th-hour theatrics from a hospitality company intent on disrupting Rhode Island’s third-largest revenue source.”

Meanwhile, Bill Fischer, a spokesperson with IGT, fired back at the proposal.

“Neither Camelot nor Twin River has the expertise to manage the complex computer systems that support RI’s lottery operations. In fact, IGT provides the technology to support Camelot’s lottery operations in the United Kingdom,” Fischer said. “They have produced no plan or specifics to bring 1100 jobs to Rhode Island or explain how they will replace IGT’s annual payroll of $111 million. Camelot states that they have 500 employees worldwide yet they are making a promise to bring 1100 jobs to Rhode Island? None of this makes sense. This is a bright shiny object put forth by Twin River to distract everyone before the legislative hearings begin – nothing more.”

Governor Raimondo is set to testify in front of the Senate Finance Committee on Oct. 1 and in front of the House Finance Committee Sept. 24.