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Rhode Island Becomes More Dependent on Gambling Revenues

LINCOLN, Rhode Island – As reported by the Providence Journal: "Minutes after the doors at Lincoln Park opened at 9 a.m. on a recent Monday, one in five slot machines was occupied.

"…By the height of Saturday night, the greyhound track was bursting at the seams. Patrons were feeding dollar bills into just about every video slot machine. Of the 2,543 machines there, 96 percent were in use, according to the state Lottery Commission.

"At peak times like that, gamblers often hover around their favorite machines, waiting for a chance to play. Others -- unwilling to wait -- simply leave, track officials say.

"To meet the ever-growing demand, Lincoln Park plans to add another 459 slot machines by May. That will bring the track to 3,002 video-lottery terminals -- the maximum now allowed by the Lottery Commission.

"…Last week, BLB Investors -- a consortium of hotel and gambling interests -- announced plans to buy Lincoln Park from its British parent company, Wembley plc, for $435 million.

"…As part of the sale, BLB is seeking an 18-year agreement with the state spelling, out exactly what percentage of video slot revenue the company would have to pay to the state. With a long-term agreement in place, the company would then spend another $125 million to upgrade and expand the aging track.

"Along with the $125-million renovation, BLB is also seeking state approval to install 1,750 new slot machines, bringing Lincoln Park's total to 4,752.

"…The money from Lincoln Park is too good for Carcieri to pass up.

"In the past 12 months, gamblers there have lost more than $306 million in the slot machines, according to the Lottery Commission. The state's share was nearly $184 million.

"…Gambling at the Lincoln and Newport sites, and from traditional lottery tickets, accounted for 11 percent of all state revenues last year. Each year, gambling represents a larger and larger portion of the state's income. Only the state income and sales taxes bring in more money…"

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