House Minority Office Statement on IGT/TR Proposed Contract Bill Signing by Governor McKee

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The IGT/Twin River legislation just signed by Governor McKee overpays these multi-national corporations by $800 Million.

First, the state is getting ripped off by only taking 12.7% of our table game revenue. If we were to match Massachusetts’ 25% take, that would put an additional $400 million in state coffers. Next, Rhode Island will pay IGT 2.5% of slot revenues for what our independent analyst described as an unnecessary computer system. Meanwhile, IGT only charges Kansas 1% of slot revenues its computer system. Matching Kansas would net approximately $156 million for the state. Last, the state will pay $221 million more to lease slot machines from IGT and Twin River than if we just purchased them - like the 90% of casino owners across the country that purchase their own slot machines.
 
Democrats trumpet this as a “jobs saving bill,” which is not entirely accurate. The new legislation amends the state’s relationship with IGT to now count all sorts of non-employee independent contractors and outsourced staff towards its 1100 jobs mandate -- such as its army of lobbyists. Worse, the penalty for IGT’s failure to meet the jobs mandate is merely $7,500 per job -- although IGT/Twin River claimed during hearings that each job would benefit the State to the tune of $23,750. Why would the state agree to a penalty that is less than the benefit of its bargain?

The 20-year tech-based deal epitomizes backroom dealing, corporate welfare, and crony capitalism. However, it only authorizes the Governor to bypass public bidding laws and enter into this 20-year insider deal. He is not required to accept the plan outlined in the legislation, nor should he. To protect taxpayers Governor McKee should do the responsible thing and negotiate a better deal.
 
We hope he takes this opportunity to build a lasting legacy -- unsaddled by his predecessor’s bad deal -- and fights to keep more of the profits from the People’s casinos to fund education, public safety, environmental protection, housing, transportation, infrastructure, and reduce our tax burden.​

ADDITIONAL GAMING CONTRACT INFORMATION

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The Rhode Island House of Representatives Minority Office Membership (Republican) is comprised of the following representatives who were elected by constituents who live in districts throughout the Ocean State:  Minority Leader, Blake Filippi, District 36 (Charlestown, South Kingstown, Westerly, New Shoreham); Minority Whip, Michael Chippendale, District 40 (Foster, Glocester, Coventry); Deputy Minority Leader George Nardone, District 28 (Coventry); Representative Brian Newberry, District 48 (North Smithfield, Burrillville);  Deputy Minority Leader David Place, District 47 (Burrillville, Glocester); Representative Justin Price, District 39 (Exeter, Hopkinton, Richmond); Deputy Minority Whip Robert Quattrocchi, District 41 (Scituate, Cranston); Senior Deputy Leader Sherry Roberts, District 29 (Coventry, West Greenwich).  For more information, please visit our website at www.rihousegop.org  ​