International Game Technology (IGT) is forced to re-establish hundreds of underperforming casinos of Rhode Island at two of its parent company, i.e., Twin River casinos due to sudden fall in the revenue. The Rhode Island Lottery guided Twin River Worldwide Holdings to manage the casino and pull 360 underperforming IGT slots of video lottery terminals. This lottery oversees the most activity in the city. The spokesman of IGT said that their company is planning to replace 270 machines besides their own.
In July, there are several declines faced by Twin River casinos in both the slots, i.e., 17% and table game revenue, i.e., 34%. The flashy new $2.6 billion of Encore Boston Harbor property just across the Massachusetts border.
According to the Providence Journal, Gerald Aubin, who is the Lottery director, tells that the ages of some machines are more than 20 years old. These machines are not only failing in generating minimum revenue but also falling behind the machines created by the competitors of IGT.
Currently, IGT is supplying 85% of its machines to the two casino’s gaming floors, and the rest of it is matching the scientific games. As per the law, the IGT is limited to 50% of its machines, but the provision is ignored by the state. In 2015, IGT is combined with its competitor GTECH and hence, boosted its share.
There is a belief that aged machines of IGT were underperforming because of its competitors that were stated by River executives. They were trying to undo controversial no-bid extension of the state’s IGT Twin contract. It could determine the existing 85% of machine level, and until the year 2043, it will give the right to execute the Lottery’s central-operating systems.
This decision led Rhode Island as a subject to the investigation by the State Ethics Commission (SEC). On the other hand, the Twin River casino is expecting that this investigation will accelerate its bid by taking over IGT’s contract of Lottery. Despite this, few observers are expecting that the state must take this chance on an unproven asset.
