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Rhode Island Casino Goes Bankrupt
PROVIDENCE, RHODE ISLAND --
Twin River Casino in Rhode Island filed on Tuesday for bankruptcy protection from its creditors. The casino had hoped expanded gambling would save it from insolvency, but legislative delays and reworkings of proposals left the casino in dire shape.
The company has already come to agreement with first-lien holders, and with what it called "a substantial amount" of second-lien holders, allowing it to reduce outstanding debt by as much as $290 million. Still, the casino lists assets between $100 million and $500 million, and debts between $500 million and $1 billion.
The gaming facility employs over 800 people. Along with traditional greyhound racing and the slots installed when the casino was built, virtual blackjack and roulette are available. But the added games did not generate the needed revenue to offset high state taxes and the obligation to subsidize the dog racing.
"Twin River's remaining revenues are simply insufficient to fund operations and to service the interest payments on the approximately $589 million in secured debt incurred to acquire and upgrade their facilities," the company said in a filing with the U.S. Bankruptcy Court for the District of Rhode Island.
Twin River operators say they hope to persuade state lawmakers to allow the elimination of live greyhound racing. But that move may prove difficult, as supporting the track was a priority when gambling was legalized.
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