Operator News

US – Twin River and Camelot to challenge IGT as lottery provider in Rhode Island

By Phil - 19 September 2019

Twin River Management Group (TRMG) is partnering with Camelot Lottery Solutions (Camelot) to launch an alternative bid to IGT Global Solutions for the lottery in the US state of Rhode Island.

IGT’s contract extension was agreed upon under a “non-competitive” arrangement. Twin River and Camelot have submitted a proposal to the offices of the Governor, Speaker of the House and Senate President for a competing proposal to operate the State’s lottery system. It will provide 1,100 jobs backed by a $100m guarantee, saves the State and its taxpayers approximately $500m in fees, invests $75m in development and improvements including a new 50,000 square foot corporate headquarters in the state, and would limit the control of the casino slot floor to the current state law of 50 per cent.

The proposal was developed to provide for a public, open bid process, one in where the State solicits proposals from interested vendors in order to secure the best deal, rather than simply renewing the existing billion dollar contract with IGT for a period of 20 years. Twin River and Camelot requested that the State comply with purchasing laws and proceed with a competitive bid process.

Marc Crisafulli, Executive Vice President of Twin River Worldwide Holdings, said: “We believed all along that Rhode Island would secure a much better deal through a competitive bid process and today’s bid submittal demonstrates exactly that. As is evident, we have significantly improved upon the no-bid deal under consideration for IGT in many areas, notably in the shorter term, the lower fees to the State, meaningful investments in real estate development and a $100 million guarantee to secure 1,100 new jobs, all while matching every other element of the proposed IGT deal.”

Mr. Crisafulli added: “We’re grateful the General Assembly will now take up this issue and can best decide for themselves, on behalf of their constituents, which is the better course for the State. Importantly, they can do so knowing that the 1,100 jobs thought to be in jeopardy if the IGT contract was not automatically renewed absolutely will be guaranteed.”

Wayne Pickup, CEO of Camelot Lottery Solutions, added: “We’re excited about the possibility of teaming up with Twin River to compete for the State’s lottery business and strongly believe, if given the opportunity to do so, we will help the State secure a much better deal. We see a lot of opportunity to create more value for the State and its residents, and look forward to replicating the success we have delivered for our customers across the globe.”

It would offer a 50 per cent share of VLTs at the two Rhode Island casinos to stimulate increased competition among suppliers and preserve and/or enhance current State revenue of approximately $300m annually, compared to the 85 per cent sought by IGT in its proposed deal which requires a change to existing law.

IGT Chairman Robert Vincent said the challenge was ‘nothing more than an attempt to distract lawmakers as we’re going in to the legislative process.’

IGT’s spokesperson Bill Fischer added: “Neither Camelot nor Twin River has the expertise to manage the complex computer systems that support RI’s lottery operations. In fact, IGT provides the technology to support Camelot’s lottery operations in the United Kingdom. This is a bright shiny object put forth by Twin River to distract everyone before the legislative hearings begin.”

House Speaker Nicholas Mattiello said: “We just received the letter from Twin River and Camelot and we have not yet studied or analysed it. The House Finance Committee will be conducting an open and thorough process and will give Twin River and Camelot the opportunity to testify should they want to.”

Both TRMG and Camelot are experienced operators in the casino and lottery gaming industries respectively. Camelot has decades of lottery experience and has delivered outstanding results on contracts in Illinois, Arkansas, UK, Ireland and Switzerland.

Earlier this year, Camelot successfully delivered the largest retail and technology transformation (from IGT) in US lottery history for the Illinois Lottery, rolling out 50,000 pieces of equipment across more than 7,200 retailers and seamlessly converting the lottery gaming system.