Bally’s seeks more cash from state to promote casinos

Rhode Island state regulators are opposing a proposal from Bally’s they say would see the state fork over millions more a year to the casino company.

The Department of Revenue claims the plan, using current numbers, would increase the state’s marketing payment to Bally’s by $2.756 million a year.

A bill introduced in the state Senate Friday, and the subject of a committee hearing Wednesday, would merge the marketing contract between Bally’s and the state for both the Twin River casino in Lincoln and the Tiverton casino.

The amount of money the state gives Bally’s for marketing is currently regulated by two different rate structures for the two casinos.

The state gave Bally’s more than $4 million in marketing money this fiscal year, according to the Department of Revenue.

The state of Rhode Island receives 61% of video slot revenue and 18% of table game revenue from the Bally’s casinos, in the range of more than $300 million per year.

Rhode Island Lottery Director Mark Furcolo provided a letter of opposition to the Bally’s proposal as part of the Senate committee hearing Wednesday.

The Senate committee voted to move the proposal to the full Senate.

Bally’s spokeswoman Patti Doyle told NBC10, “We wanted to make sure we had as many tools at our disposal,” especially if a bill to ban smoking at the casinos passes.

Doyle said a smoking ban is estimated to cost the state $20 million in casino revenue.

Doyle told NBC10 the proposed legislation “will allow us to be more effective in our marketing, which we will need.”

A Bally’s representative told the Senate committee Bally’s is also seeing more competition across state lines in Massachusetts, in Taunton and in Plainville.

Doyle also said the proposal was about streamlining the marketing payment agreement with the state to align the casinos in Lincoln and Tiverton.

The current agreement is rooted in when the Tiverton casino license was at Newport Grand under different ownership, Doyle pointed out.

The new marketing funding proposal was introduced by Senate Majority Leader Frank Ciccone (D-Providence, Johnston).