LINCOLN, R.I.—One of Rhode Island's two licensed slot parlors has asked to restructure its deal with the state to avoid falling into bankruptcy.
Twin River, a greyhound track and video gambling facility, has proposed an upfront payment of $500 million to the state. In exchange, the state would reduce by more than half the share of slot revenue it takes from the facility.
The facility has missed loan payments to its bank, its bond ratings have been downgraded and the primary contractor responsible for a $225 million renovation project has placed liens on the property seeking $6 million for part of that work.
"The situation is dire. We are standing on the edge of a precipice," Twin River spokeswoman Patti Doyle said.
Gambling accounts for the third-largest source of revenue for Rhode Island.
The state faces a budget deficit of at least $434 million, and House lawmakers plan a floor vote next week on a $6.8 billion spending package.
House Speaker William Murphy, who met with Twin River representatives this week, said he did not support the proposal at the moment and there would not be any deal before the budget vote.
But he would not rule out future discussions with the owners.
"If they call me and need to meet, I'll meet with them," Murphy said.
The state currently receives 61.45 percent of the facility's slot revenue. Under Twin River's proposal, that share would be cut to 25 percent in exchange for a $500 million payment.
"We are pleased to be receiving more than 60 percent of the gambling revenues from Twin River," said Jeff Neal, a spokesman for Gov. Don Carcieri. "The state has not made in any way any proposal that would change the current arrangement."
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Information from: The Providence Journal, http://www.projo.com/
