New York-listed Scientific Games has joined the Twin River Worldwide Holdings-led consortium that is seeking a public bid process for the Rhode Island lottery contract currently held by IGT.
Scientific Games joins Twin River, Camelot and Intralot in the consortium, which is opposing the state’s consideration of a 20-year, no-bid billion dollar extension to the IGT contract which expires in 2023.
The announcement comes as the Rhode Island state Senate Finance Committee conducts hearings this week to review the legislation surrounding the contract extension.
“Today’s announcement that Scientific Games has joined Twin River is further proof that there is significant interest in bidding for Rhode Island’s lottery and gaming business, with virtually the entire global lottery industry now confirming that they will participate if an open competitive bidding process develops in Rhode Island,” said TRWH executive vice president Marc Crisafulli.
“We believe this is ultimately very good news for the Rhode Island taxpayers. We look forward to continuing our conversation with members of the General Assembly about the efficacy of a public bid process, the extraordinary savings to the state that likely could be realized when competition enters the marketplace and how we can collaboratively protect and enhance the state’s third largest source of revenue.”
The current proposal from the Twin River Worldwide Holdings (TRWH) consortium includes a 12-year contract with an approximate cost to the state of less than $500m, versus the current IGT contract which is expected to cost over $1bn to the state. Should the state prefer a 20-year contract, an upfront payment of $75m has been proposed, $50m more than IGT for the same contract term.
The proposal also commits to the creation of 1,100 jobs in the state, backed up by a $100m guarantee to the state if the jobs commitment falls short, and the expenditure of $50m at Twin River’s casino to include new amenities and facility upgrades as part of an overall commitment to invest $150m.
“Scientific Games is well known to us,” continued Crisafulli. “Their machines in our two Rhode Island facilities outperformed IGT-controlled machines by over 50 per cent last year, delivering on average over $31,000 more per machine to the state of Rhode Island taxpayers.
“They have a successful track record of understanding player preferences and delivering products that exceed customer expectations. The New England gaming market has become increasingly competitive, and the addition of Scientific Games to our team is an important part of enhancing our ability to compete and deliver positive results for Rhode Island.”
Scientific Games will offer its full suite of lottery services to the consortium, with specific lottery services provided by the supplier and other consortium members to be tailored to the details of the bid issued by Rhode Island.
“As the only full-service lottery provider headquartered in the United States, Scientific Games is very excited about bringing our global leadership in lottery and gaming products to Rhode Island in a more meaningful way,” said Scientific Games executive vice president and group chief executive, lottery Patrick McHugh.
"We are confident that our products will improve the performance of Rhode Island Lottery programs and create millions of dollars in new revenue for the state. We are pleased to formalize our commitment to bidding with the Twin River/Camelot consortium. There are tremendous synergies created by our companies coming together to deliver a competitive package that seeks to increase lottery sales and profits for Rhode Island.
“Scientific Games values the trust our 150 lottery customers have placed in us throughout 50 countries worldwide and look forward to helping make Rhode Island the leading lottery performer it should be,” he added.
Shares in Scientific Games Corporation (NSQ:SGMS) closed down 1.46 per cent at $22.94 per share in New York Wednesday, while shares in Twin River Worldwide Holdings Inc. (NYQ:TRWH) closed 0.20 per cent lower at $24.45 per share in New York.