Lawmakers told a Tiverton casino would be viable

Capping off a hectic day headlined by votes on Governor Raimondo's truck-tolling, bridge-repair proposal, the House Finance Committee held a relatively brief hearing on the legislation that would ask voters to decide in a November referendum if the casino should be built.

Lawmakers raised questions pointing to the saturation of the Northeast casino market and the unknowns involved in how many Massachusetts casinos might be built and where.

Referring to the Plainridge Park Casino in Plainville, Mass., which opened last summer and has fallen short of revenue expectations, Rep. Carlos Tobon, D-Pawtucket, asked, "What would you attribute to the less than stellar performance of the current competitor that just opened up? Do you think that could happen to us?"

In short, no, said John E. Taylor Jr., chairman of the board of Twin River's parent company. Taylor said he believes Twin River knows how to compete with destination casinos by attracting the "convenience" gambler.

He also referred to a study prepared for Twin River in November by The Innovation Group, of Winter Park, Fla. The report projects potential Tiverton casino revenues based on where Massachusetts casinos might open.

In the worst-case scenario — in which casinos are opened in both Brockton and Taunton — the state's share of gambling revenue is projected at $47 million. In the best-case scenario — in which neither opens — the state's annual share could be as large as $70 million. The state's share of revenue from Newport Grand, which would close if the Tiverton casino is approved, was $27 million in the fiscal year that ended June 30.

The state would see roughly 61 percent of revenue from video lottery terminals (VLTs) — the same cut received from the terminals at Twin River and Newport Grand. Tiverton would get 1.45 percent of VLT revenue. The state would also pull in 15.5 percent of table game revenue from a Tiverton casino while Tiverton would see 1 percent.

If the legislation is approved, when a Tiverton casino opens that same breakdown would apply to Twin River with the 1 percent local share going to Lincoln. That's a cut from the state's current table game revenue share of 16 percent.

The bill also guarantees Tiverton would get $3 million annually from gambling revenues. If it doesn't, the state would make up the shortfall.

Town officials, Taylor told the committee, want their share of annual revenue from the casino to make up roughly 10 percent of the town's roughly $40-million budget. The town would receive roughly $1 million from property taxes and permitting fees, and the legislation would ensure that the other $3 million is from gambling revenues.