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R.I. moves to protect itself

PROVIDENCE, Rhode Island -- As reported by the Providence Journal: "As Twin River's owners struggle to pay back the hundreds of millions of dollars they borrowed to buy and renovate their sprawling video-slot emporium, the state has — very quietly — taken steps to safeguard its share of the money "in the event of a bankruptcy filing."

"Business is still brisk at the refurbished greyhound racetrack with 4,751 video-slots.

"Revenues shot up nearly 9 percent in May with the introduction of 24-hour gambling on week-ends and holidays. With Rhode Island's cash-strapped government heavily dependent on gambling money, the spurt came as welcome news.

"Out of every dollar lost into one of the machines, the state gets close to 60 cents. If expectations play out, that would translate into $254,459,280 for the state this year.

"But in private talks with the governor's staff and top lawmakers last month, Twin River's owners painted such a dire picture of their financial circumstances that state officials felt compelled to take extra steps to safeguard those dollars.

"...Twin River is owned by a consortium of Kerzner International, a Bahamas-based casino and resort operator that helped develop the Mohegan Sun casino; the Waterford Group, which owns or manages 22 hotels and the Connecticut Convention Center, in Hartford; and Starwood Capital, an affiliate of Starwood Hotels & Resorts Worldwide..."

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