Bally’s Two Casinos in Rhode Island Approved for Increased Credit Limits

Article by : Erik Gibbs Jun 10, 2024

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The Rhode Island Senate has approved a significant piece of legislation that will double the maximum line of credit available to patrons at Bally’s Twin River Lincoln and Tiverton casinos, increasing the limit from $50,000 to $100,000.

This decision, which saw a vote of 28-5 in favor this past Thursday, was championed by Sen. Frank Ciccone III, a Democrat from Providence.

While the majority supported the bill, five Democrats – Sam Bell, Tiara Mack, Joshua Miller, Linda Ujifusa, and Bridget Valverde – voted against it. The primary aim of this legislation is to ensure that Rhode Island’s casinos remain competitive with those in neighboring states, which generally offer higher or no credit limits.

For instance, Massachusetts does not restrict lines of credit, and Connecticut’s major tribal-run casinos, Mohegan Sun and Foxwoods, similarly have no borrowing caps.

The existing maximum credit cap of $50,000 at Twin River has been in place since the casino introduced table games in 2014. Opponents of the legislation, such as Sen. Sam Bell, have raised concerns that increasing the credit limit could worsen problem gambling and lead to greater financial hardship for casino patrons.

To address these concerns, the bill includes a mandatory application and vetting process based on personal income and credit history before any extended credit can be approved. Despite these precautions, the Rhode Island Lottery, which regulates state gambling activities, voiced opposition to a specific provision in the bill.

This provision would have allowed Bally’s to negotiate a new debt ratio with the Division of Lottery and the Department of Business Regulation.

Lottery Director Mark Furcolo argued that this would tie the state to methodologies for calculating restrictions and limitations that are influenced by Bally’s other debt agreements with non-state entities. Furcolo emphasized that the interests and remedies of these lenders differ significantly from those of the state in the event of Bally’s encountering financial difficulties.

In response to these concerns, Sen. Ciccone proposed a floor amendment to remove the clause referencing other debt agreements. Although this amendment was adopted, the amended bill still permits changes to the methodology used for calculating the debt ratio.

Following these adjustments, the Department of Revenue, represented by spokesperson Paul Grimaldi, indicated that Furcolo had no additional comments on the legislation as it was passed by the Senate.

Bally’s spokesperson, Patti Doyle, expressed gratitude for the Senate’s support and looked forward to the House’s consideration of the bill. The proposed legislation also initially included a change regarding Bally’s use of promotional points, but this particular language was removed before the bill advanced out of committee.

A companion bill, sponsored by Rep. Gregory Costantino, a Democrat from Lincoln, is currently under review by the House Committee on Finance following a hearing on May 23.

This companion legislation will need to pass through the House before the changes can be fully enacted, ensuring that Rhode Island’s casinos remain competitive while balancing regulatory and social concerns.